Cash flow is the top element of a company's production and operation activities. The break of the capital chain will cause the company to face bankruptcy threats immediately, and the cash flow situation determines the survival of the enterprise. Under the current economic situation, how to strengthen the management and control of cash flow has become the focus of attention of enterprises.
The prepaid promotion method adopted by many service products in the communication industry is typical cash flow marketing. For example, China Mobile often holds a “storage fee to send gifts†promotion campaign to encourage consumers to save more phone bills, and the cost of the agreement with the customer must be divided into 5 months or 10 months. Under this cash flow marketing strategy, companies can get more cash inflows and have more time to freely control these funds.
The so-called cash flow marketing strategy refers to the use of cash flow management as the marketing core to formulate marketing models, products, prices and other strategies to launch marketing activities to help enterprises obtain large amounts of cash inflows in a short period of time and protect the safety of corporate capital chains.
Inspiration: Cash Flow Strategies across Industries
In all walks of life, companies can use cash flow strategies in all aspects of marketing activities. The following focuses on the application of cash flow strategies in various industries, with a view to inspiring business managers.
Service industry: The cash flow marketing strategy is widely used in service products, and the typical value is the stored value membership card of the beauty industry. Most beauty salons use a stored-value membership card system. The membership card has a long consumption cycle and a large amount of funds. The beauty salon can have a large amount of cash inflows in the short term, with smooth capital turnover and high returns.
Insurance industry: Taking life insurance in insurance as an example, consumers first select a life insurance product, and then receive regular pensions in the early years, and receive a certain amount of pensions every month or year in later years. This type of insurance product is very beneficial to increase the cash inflow of insurance companies.
Communication industry: The more classic is the prepaid fee of the communication industry. As the name suggests, “prepaid†means paying the fee first, then getting the product or service. The large amount of cash obtained in advance provides guarantee for the company's subsequent production and service. In addition, there are promotional activities such as “storage fee to send gifts†mentioned above.
Manufacturing industry: The early-stage implementation of the home appliance industry's off-season payment, the peak season delivery strategy, has become a booster for its rapid expansion. It not only solves the problem of cash flow in the off-season, but also helps solve the problem of balanced production in the off-season.
Real estate industry: More typical is "sales charter." After-sales charter refers to the sales method that the developer promises to the purchaser that the commercial house purchased by the developer is rented or rented by the developer and paid a fixed annual return. Some real estate developers adopt the "sincerity gold" method: consumers pay a certain amount of "sincerity gold" (such as: 20,000 yuan) within the prescribed time limit, and they can reach more room amount at the time of opening (such as: four 10,000 yuan), this is also a form of expression of cash flow marketing strategy.
Network industry: Sometimes, users find that the content displayed on a website's related links is exactly what they want. When you click to view the full text, a pop-up dialog box is required for registered members, and registered members must pay one-time payment. Website information usage fee for the year. These sites do not use the method of downloading an article to collect a fee, and use cash flow marketing to target consumers.
Obstacles: the shackles of cash flow marketing to get rid of
Cash flow marketing also has various benefits beyond the security of the capital chain.
For example, it is conducive to strengthening the management of customers to the customer, so that many small customers who pay a single time for a single purchase become a large customer with one-time payment and multiple consumption in advance, and for the customer to receive continuous service in the later stage, the enterprise can Obtaining the information of these customers does not arouse the customer's dislike. Making full use of these customer information will help strengthen customer management and improve customer satisfaction.
In addition, if the company has too much inventory of a certain product, a discount is given to the wholesaler or retailer who purchases the product, so as to quickly clear the inventory and obtain the effect of withdrawing funds in a short time. Products that enter a recession use this strategy and the benefits are even more pronounced.
However, cash flow marketing strategies may encounter some obstacles when applied:
One of the obstacles: consumer habits and the constraints of industry regulations. For example, in the vat drinking water industry, consumers have adapted to the consumption pattern of pre-purchasing a large number of water tickets, and such enterprises can smoothly continue to use this cash flow marketing strategy when developing new products. In some industries, companies have never adopted a cash flow marketing strategy, and there are difficulties in applying this strategy. For example, the wine industry, if it is like selling large barrels of drinking water, it will be very difficult for consumers to purchase a large number of wine tickets at one time.
The second obstacle: the restriction of brand trust. Cash flow marketing strategies require consumers to prepay a large amount of cash, and then slowly consume, and the consumption cycle may be very long, the consumer agrees to do so is based on the trust of the company or brand. For small businesses or new companies that do not yet have brand influence and have not accumulated brand trust, implementing cash flow marketing strategies will encounter obstacles from consumers.
The third obstacle: the problem of the proliferation of membership cards. The stored value membership card is one of the main manifestations of the current cash flow marketing strategy. Nowadays, more and more merchants are issuing various cards. In the long run, consumers will resist various cards of merchants, which is not conducive to the issuance and sale of stored value membership cards.
Program: ways to remove obstacles
Enterprises must eliminate the above obstacles in order to successfully implement the cash flow marketing strategy, and the methods for removing obstacles are as follows.
Method 1: Guide the consumer. In some industries that have never applied a cash flow marketing strategy, companies can apply a cash flow marketing strategy by comparing preferential promotions. For example, a one-time purchase of a product to a certain amount, give a certain cash discount or a gift. Consumers tend to accept this type of consumption if the discount or giveaway is attractive enough and the product can be stored or used for a long time.
This kind of promotion is held several times, which may change the consumption habits of some consumers, and the habits of habits and rules will be broken.
Method 2: Integrate membership card resources. For some small businesses that wish to issue a stored value membership card, the issuance of the membership card can be carried out by a third party with a higher brand reputation. Third-party organizations can integrate many of these small businesses to distribute a stored-value membership card that can be used by multiple companies. This win-win situation not only reduces the number of cards, but also increases the function of single cards. It also enables small enterprises and new enterprises that have not accumulated high reputation to issue stored-valued membership cards and realize cash flow marketing strategies.
Method 3: Strengthen member management. For customers who have stored value membership cards or prepaid customers, companies should provide higher quality services in order to eliminate customer resistance. For example, the company can find out the consumer preferences of each customer based on the customer information obtained and the past consumption of the customer, and provide targeted personalized products or services; it can provide a consumer deadline to remind the business in advance and help consumers stay. Ample time to complete the consumption of the remaining products or services; can also provide convenient and quick membership card loss to complete the procedures, lift the worries of consumers and so on.
Due to its own characteristics, the cash flow marketing strategy guarantees the “blood circulation†of the company's cash flow and accelerates the capital turnover. It not only helps the company avoid the danger of the capital chain breaking under the financial crisis, but also creates conditions for the company to win at a speed. In order to expand production and rapidly expand the scale, it offers the possibility.
Under the current global economic situation, and the pressure on the capital flow of many domestic enterprises, it can be said that an era of real cash flow marketing strategy has arrived.
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