What Are the Biggest Benefits of P2P Lending?

P2P lending, or peer-to-peer lending, is a modern form of borrowing and lending that directly connects  businesses seeking loans with investors willing to fund them through online platforms. It eliminates the need for traditional financial intermediaries like banks, resulting in faster loan processing and more favorable interest rates for borrowers. In contrast, traditional options involve borrowing from banks which often have long application processes, more extensive paperwork, and stringent credit requirements, 

What is P2P lending and how does it work?

P2P lending, also known as crowdfunding, is a financial model that allows individuals or businesses to borrow money directly from a group of investors, or peers, through an online platform. In this lending arrangement, traditional financial intermediaries like banks are bypassed, and borrowers are connected with potential lenders through the P2P lending platform.

Here’s how P2P lending works:

  • Borrower Application: Individuals or businesses seeking a loan apply for funding through a P2P lending platform. They provide information about the loan amount, purpose, and other relevant details.
  • Credit Assessment: The P2P platform evaluates the creditworthiness of the borrower by conducting a thorough credit check, assessing financial history, income, and other relevant factors. This evaluation helps determine the borrower’s risk profile and the interest rate at which they can borrow.
  • Loan Listing: Once the borrower is approved, the loan request is listed on the P2P platform. Potential investors can review the loan details, borrower’s credit profile, and the interest rate offered.
  • Investor Selection: Investors, also referred to as lenders, have the opportunity to browse through various loan listings and choose the ones they wish to fund. They can diversify their investments by funding small portions of multiple loans.
  • Funding the Loan: When enough investors commit to funding a specific loan, the loan is considered fully funded, and the borrower receives the total loan amount. If the loan is not fully funded within a specified period, the loan request may be canceled, and investors’ funds are returned.
  • Loan Repayment: Borrowers repay the loan, including principal and interest, in regular installments over the loan term. The P2P platform facilitates the loan repayments and distributes the payments to the respective investors.
  • Investor Returns: As borrowers make loan repayments, investors receive their share of the principal and interest payments. The returns on investment are based on the interest rate agreed upon and the borrower’s repayment performance.

How does P2P lending connect borrowers and lenders directly?

P2P lending directly connects borrowers and lenders through an online platform, eliminating the need for traditional intermediaries like banks. Borrowers apply for loans, which are listed on the platform for potential investors to fund. Once enough investors commit, the borrower receives the loan, repays it over time, and the platform distributes payments to the investors. P2P lending offers quick access to funds, potential lower interest rates for borrowers, attractive returns for investors, and a streamlined borrowing and investing experience, but participants should exercise caution and understand the associated risks.

What are the key features and requirements of P2P lending?

The key features of P2P lending are as follows:

Online Platform: P2P lending operates through an online platform, which serves as a marketplace connecting borrowers and lenders. This platform facilitates the loan application process, loan listings, investor selection, and loan management.

Direct Borrower-Lender Connection: P2P lending eliminates the need for traditional financial intermediaries by directly connecting borrowers and lenders. Borrowers apply for loans, and investors (lenders) can choose which loans they want to fund.

Borrower Credit Assessment: P2P platforms typically conduct credit assessments of borrowers to evaluate their creditworthiness and assess the risk associated with the loan. This helps in determining the interest rate and loan terms.

Diverse Borrower Profiles: P2P lending serves a wide range of borrowers, including individuals, small businesses, and entrepreneurs. Borrowers may seek loans for various purposes, such as personal expenses, debt consolidation, business expansion, or funding specific projects.

Investor Choice and Diversification: Investors have the flexibility to choose which loans they want to fund based on borrower profiles, loan amounts, risk levels, and interest rates. They can diversify their investment across multiple loans to spread risk.

Loan Listings and Auctions: Borrowers’ loan requests are listed on the platform, where investors can review the details and decide whether to participate in funding the loan. Some P2P platforms use auction-style systems where investors bid to offer funds at different interest rates.

Transparency and Disclosure: P2P lending platforms aim to provide transparency and disclosure to both borrowers and lenders. Borrowers receive clear information about interest rates, fees, and loan terms, while investors are informed about the potential risks associated with their investments.

Loan Repayment and Servicing: Borrowers repay their loans over a predetermined period through regular installments. P2P platforms manage the loan servicing, including collecting borrower payments and distributing them to investors.

Risk Assessment and Management: P2P lending involves risks, such as borrower default and platform risk. Platforms employ risk assessment models and diversification strategies to mitigate these risks.

Regulation and Compliance: P2P lending is subject to regulatory oversight in many countries to protect both borrowers and investors. P2P platforms must comply with relevant financial regulations and consumer protection laws.

Accessibility and Convenience: P2P lending offers borrowers and investors a convenient and accessible way to access funds or invest money from the comfort of their homes using digital platforms.

Social and Environmental Impact: Some P2P lending platforms focus on supporting socially responsible or environmentally sustainable projects, allowing investors to align their investments with their values.

Top Benefits of P2P Lending

Access to funding for various purposes, including inventory financing

One of the top P2P lending benefits is accessibility for funding including for inventory financing and e-commerce  inventory financing. P2P platforms connect borrowers directly with individual lenders, eliminating delays and hassles associated with traditional lenders. This streamlined approach allows businesses and individuals to secure funds for inventory purchases and other needs efficiently, supporting business growth and financial objectives.

Flexible borrowing terms and competitive interest rates

An advantage of P2P lending is that it offers flexible borrowing terms and competitive interest rates. Borrowers can customize loan options to suit their financial needs and capacity, aligning with their goals. The competitive nature of P2P lending ensures attractive interest rates, making it an appealing alternative for businesses seeking funding.

Faster application and approval process compared to traditional lenders

Another top benefit of P2P lending is a fast, efficient application and approval process. Operating online, P2P platforms eliminate lengthy paperwork, and borrowers receive quick decisions on their loan requests, allowing them to access funding promptly, ideal for business expansion needs.

What is inventory financing and why is it important for businesses?

Inventory financing  is a funding option that allows businesses to use their inventory as collateral to secure capital quickly. It is particularly beneficial for businesses dealing with physical goods, as it helps maintain optimal inventory levels, manage seasonal demand fluctuations, and access liquidity without selling off inventory. This type of financing is essential for retail, manufacturing, and distribution sectors, providing financial flexibility and stability to navigate cash flow challenges and invest in growth opportunities.

Benefits of using P2P lending for inventory financing:

Access to working capital for purchasing and managing inventory

One of the  key benefits of P2P lending for  inventory financing  is easy access to working capital for purchasing and managing inventory. P2P platforms directly connect businesses with investors willing to fund inventory needs, allowing businesses to maintain optimal inventory levels, respond to seasonal demand, and pursue growth opportunities without selling off existing inventory. This ensures smooth operations and maximizes profitability.

Flexible repayment options based on sales cycles and inventory turnover

P2P lending provides flexible repayment based on sales cycles and inventory turnover. Businesses can adjust repayments during slow sales, easing financial strain, and allocate more funds during peak sales, reducing interest costs. This dynamic approach empowers businesses to manage financial obligations effectively and maintain stability.

Streamlined process and reduced paperwork compared to traditional lenders

Another benefit of P2P lending is the streamlined process and reduced paperwork compared to traditional lenders. P2P platforms operate online, offering user-friendly interfaces that simplify applications. Faster processing times and a digital approach make P2P lending an effortless and time-saving financing option.

P2P lending vs. traditional options

P2P lending directly connects borrowers and investors online, providing faster processing and potentially better rates for borrowers, along with higher returns for investors. Traditional options involve borrowing from banks, which can be slower but may offer added security and regulations.

How Kickfurther can Help

Kickfurther operates as a P2P lending platform that offers a collaborative approach to inventory financing for businesses. As a P2P lending platform, Kickfurther connects businesses in need of working capital for inventory financing with a community of backers who are willing to provide funds. Businesses can submit their inventory financing needs on the platform, and backers can choose which opportunities they want to support. Kickfurther provides: 

Access to Working Capital: Kickfurther enables businesses to access working capital quickly without selling off their inventory. This allows them to meet immediate financial needs, invest in growth opportunities, and manage fluctuations in demand.

Flexible Repayment: Kickfurther provides businesses with flexible repayment options based on their sales cycles and inventory turnover. This dynamic approach allows businesses to adjust repayment amounts during slow periods and allocate more funds during peak sales.

Streamlined Process: The online platform streamlines the application process, eliminating lengthy paperwork and in-person visits. Businesses can complete the application online and receive a quick decision on their loan request.

Access to a Community of Backers: Kickfurther connects businesses with a community of buyers who share an interest in supporting sustainable and responsible business practices. This community-driven approach fosters transparency and communication between businesses and buyers.

Closing thoughts

Kickfurther’s streamlined inventory financing and e-commerce inventory financing models and P2P platform offer businesses a beneficial resource, empowering them  to connect with and acquire the funding they need from investors. 

 

Sustainable Financing: Funding Strategies for Green Businesses

Sustainable financing, or green finance, mobilizes financial resources to support environmentally and socially responsible projects and businesses. It encompasses grants, equity and debt financing, crowdfunding, and impact investing. Sustainable financing is vital for promoting a resilient, eco-friendly economy with positive social and environmental impacts.

What is sustainable financing?

Sustainable financing, also known as sustainable finance or green finance, refers to the process of mobilizing financial resources and investments to support projects, businesses, and initiatives that promote environmental sustainability, social responsibility, and long-term economic development. The main objective of sustainable financing is to allocate capital and resources towards activities that have positive environmental and social impacts while generating financial returns.Key principles and practices associated with sustainable financing are:

  • Environmental and Social Criteria: Sustainable financing considers the environmental and social impacts of investments and funding decisions. It seeks to support projects and businesses that align with sustainability goals, such as reducing carbon emissions, promoting clean energy, enhancing biodiversity, and supporting social welfare.
  • Impact Measurement and Reporting: Investors and financial institutions involved in sustainable financing use specific metrics and reporting frameworks to measure the environmental and social impact of their investments. This allows for transparency and accountability in assessing the effectiveness of sustainable initiatives.
  • ESG Integration: Environmental, Social, and Governance (ESG) criteria are integrated into the investment decision-making process. ESG factors assess a company’s performance in terms of environmental responsibility, social impact, and governance practices. Companies that meet ESG standards are more likely to attract sustainable financing.
  • Green Bonds and Sustainable Investment Products: Green bonds are a prominent example of sustainable financing instruments. These bonds are issued to fund projects with environmental benefits, such as renewable energy projects or climate change mitigation initiatives. Sustainable investment products, like ESG-focused funds, provide investors with opportunities to support companies that adhere to sustainable practices.
  • Risk Management: Sustainable financing also involves considering the risks associated with climate change, environmental degradation, and social issues. Investors and financial institutions assess these risks when making investment decisions and aim to support projects that are resilient to these challenges.
  • Collaboration and Engagement: Sustainable financing often requires collaboration between public and private sectors, governments, financial institutions, and non-governmental organizations. Engaging stakeholders and building partnerships can drive collective efforts towards achieving sustainability goals.

Importance of funding strategies for green businesses

Funding strategies for green businesses are of paramount importance in accelerating the transition towards a sustainable and low-carbon economy. These businesses play a crucial role in addressing environmental challenges, such as climate change, resource depletion, and pollution. By investing in green businesses, we support the development and implementation of innovative technologies, renewable energy sources, sustainable agriculture practices, and eco-friendly products and services. 

Adequate funding enables these businesses to scale their operations, drive research and development, and attract top talent. It also fosters market competition, pushing traditional industries to adopt greener practices. Ultimately, funding green businesses is a strategic investment in the future, as it promotes environmental stewardship, creates job opportunities, enhances global competitiveness, and helps build a resilient and prosperous society for generations to come.

Top ways to fund your green business

  1. Grants and subsidies

Grants and subsidies are an excellent way for green businesses to secure funding without incurring debt or giving up equity. Governments, non-profit organizations, and even private foundations offer financial assistance to businesses that align with their environmental objectives. These funding sources can provide a significant boost to green startups or established companies, helping them cover research and development costs, promote sustainable practices, and accelerate their growth in the green sector.

  1. Equity financing

Equity financing involves raising capital by selling shares or ownership stakes in the business to investors. Green businesses seeking long-term funding often turn to venture capitalists, angel investors, or private equity firms with an interest in sustainability. By securing equity financing, these businesses gain access to both financial resources and the valuable expertise and networks of their investors. However, it’s essential to carefully consider the terms of the investment to maintain control over the business’s direction and maintain its commitment to environmental values.

  1. Debt financing

Debt financing involves obtaining loans from banks, financial institutions, or green-focused lenders to fund the business’s operations and expansion. Green businesses can use debt financing for various purposes, such as purchasing equipment, scaling production, or funding marketing campaigns. While debt financing requires repayment with interest, it allows businesses to maintain full ownership and control over their operations. Responsible and sustainable debt management is crucial to ensure the business’s financial stability while pursuing its environmental goals.

  1. Crowdfunding

Crowdfunding platforms offer a unique and inclusive way for green businesses to raise funds from a broad base of supporters. By presenting their projects or products online, businesses can attract small investments from individuals who believe in their mission and vision. This approach not only provides access to capital but also helps in building a community of engaged customers and advocates. Crowdfunding has become a popular option for green startups, allowing them to gain visibility and funding while validating the market demand for their eco-friendly solutions.

  1. Impact investing

Impact investing has gained traction as a funding strategy that aligns financial returns with positive social and environmental outcomes. Impact investors actively seek opportunities to support businesses that prioritize sustainability and societal benefits alongside financial success. Green businesses that embrace a triple-bottom-line approach, considering people, planet, and profits, are attractive to impact investors. This form of financing enables green businesses to scale their operations while creating meaningful change and measurable positive impact in the world.

How does Kickfurther work for green businesses?

Kickfurther is a unique crowdfunding platform that offers a collaborative approach to financing for green businesses. It operates on a model known as “consignment crowdfunding,” which allows businesses to raise capital for their inventory needs by collaborating with a community of backers.

  • Inventory Financing: Green businesses that need funding for inventory purchases can submit their proposals to Kickfurther. These inventory needs could be related to eco-friendly products, sustainable materials, or other environmentally conscious goods. E-commerce  inventory financing supports environmentally conscious e-commerce companies allowing them to maintain adequate stock levels of their eco-friendly products, meet customer demand, and scale their operations sustainably. 
  • Buyer Participation: Once the proposal is approved, the business offers a “co-op” opportunity to the Kickfurther community of buyers. 
  • Collaborative Support: Kickfurther’s model encourages a collaborative relationship between the green business and its backers. Backers have a vested interest in the success of the business, and the platform fosters transparency and communication to keep buyers informed about the progress of the project.
  • Sustainability Focus: Kickfurther’s platform is open to businesses that align with sustainable and eco-friendly practices. This means that green businesses have an opportunity to access a community of environmentally conscious backers who are eager to support sustainable initiatives.

Closing thoughts

The primary goal of sustainable financing is to direct capital and resources towards green business initiatives that deliver positive environmental and social outcomes while also generating financial profits. By aligning financial interests with sustainable practices, sustainable financing aims to create a more responsible and resilient economy that benefits both society and the planet

Kickfurther provides green businesses with an alternative financing option that aligns with their values and helps them grow while maintaining a strong focus on sustainability. Kickfurther creates a win-win scenario by allowing businesses to secure the necessary inventory financing and enabling backers to invest in environmentally responsible ventures and earn returns based on the business’s success.

The Winning Playbook: Leveraging Athlete Influencers for Successful Black Friday Campaigns

The anticipation of Black Friday reminds us of the electric energy that surges through a stadium before the kickoff of a critical NFL game. Retailers and marketers worldwide brace themselves for this adrenaline-pumping event, seeking innovative strategies to score big with their Black Friday campaigns. As marketers for Direct-to-Consumer (D2C) and Consumer Packaged Goods (CPG) brands, your quest for fresh and dynamic tactics to distinguish your brand in this competitive field might just end on the sports field. Yes, you heard it right – athlete influencers can be your star quarterbacks for the Black Friday season. This blog post delves deeper into the playbook, revealing how athlete influencers can spearhead your Black Friday marketing strategy, leading you to the end zone.

 

Why Athlete Influencers?

The Fan Factor:

Athletes are more than just sportsmen; they are icons revered by fans worldwide. Their influence extends beyond the playing field, creating ripple effects on social media platforms, where their followers number in the millions. When athletes endorse a product or service, fans perceive it as a seal of trust and quality. Harnessing this influence can boost your brand’s credibility, leading to increased consumer confidence and sales during the Black Friday sales rush.

 

Stories that Resonate:

Beyond their impressive feats on the field, athletes possess personal experiences and journeys that strike a chord with their fans. Sharing these stories through blog posts, social media, and video content can strengthen your brand’s emotional connection with consumers, making it relatable, authentic, and trustworthy. For instance, an NFL player who overcame physical adversity through hard work, resilience, and your brand’s products can inspire consumers, driving them towards purchase during Black Friday.

 

Amplifying Reach and Engagement:

A potent combination of fame and the internet puts athletes in an influential position, connecting brands with millions of engaged fans. This wide-reaching influence means your Black Friday promotions can touch a wider audience, surpassing the reach of traditional marketing tactics. Moreover, an endorsement from a beloved athlete can spark interest and engagement among fans, thereby increasing your brand’s visibility.

 

Boosting Product Endorsements:

Partnering with athletes allows you to amplify specific product promotions during the Black Friday season. Athletes’ testimonials and recommendations bear significant weight among fans, enhancing their confidence in your product. Consider launching limited-edition, athlete-inspired collections or exclusive merchandise, which can create a sense of urgency and exclusivity, compelling consumers to participate in your Black Friday sales.

 

Creating Buzz through Social Media Challenges:

Black Friday can serve as a unique platform to engage your audience through social media challenges, driven by athlete influencers. Innovative brand-related quizzes, user-generated content, or creative videos can form part of these challenges, encouraging participation, and generating buzz around your Black Friday deals. Increased engagement boosts the probability of conversion, transforming casual consumers into loyal customers.

 

Hosting Exclusive Events and Collaborations:

Add a layer of excitement to your Black Friday campaigns by organizing exclusive events featuring athlete influencers. Virtual Q&A sessions, meet-and-greet events, or joint product launches with athletes can generate anticipation among consumers, motivating them to participate in your sales.

Preparing for the Big Game:

Now that we’ve explored the benefits of leveraging athlete influencers for your Black Friday campaign let’s discuss some key preparation steps to ensure a smooth and successful season.

Choose the Right Athlete:

Choosing the right athlete is crucial. The chosen athlete’s personality, values, and lifestyle should align with your brand’s ethos. A mismatch could confuse consumers and dilute your brand message. Opensponsorship makes this process easy by allowing brands to search 18,000+ athletes based on a wide range of search criteria and filters.

Create a Game Plan:

Like any good coach, you need a strategic plan. Outline your marketing goals, key messages, and deliverables. Coordinate with the athlete to ensure they understand and resonate with your campaign’s objectives.

Collaborate on Content:

Work with the athlete to create authentic and engaging content. This could be in the form of product testimonials, behind-the-scenes footage, or even a day-in-the-life video. Ensure that the content is appealing to the target audience and accurately represents your brand.

Monitor and Adjust:

Keep track of your campaign’s performance and be ready to tweak your strategy if necessary. As in sports, flexibility and adaptability can be the keys to winning.

Partnering with Kickfurther:

While preparing for your Black Friday campaign, you might face budget constraints that limit your marketing initiatives. This is where Kickfurther comes into play. Kickfurther offers a revolutionary inventory funding solution that allows brands to free up capital traditionally tied up in inventory. This can help you access the necessary funds to create more impactful and successful Black Friday campaigns.

With Kickfurther, you can fund your entire inventory order(s), giving you the flexibility to invest your existing capital in crucial areas like marketing… There are no immediate repayments, giving you control over your cash flow. Importantly, Kickfurther’s funding model is non-dilutive and not a loan, meaning it does not put debt on your books, nor does it take away your company’s equity. With quick access to funds, Kickfurther can help you keep up with the speed of Black Friday preparations.

Conclusion:

As we approach the Black Friday season, leveraging athlete influencers can be a game-changing move. Athletes offer a unique combination of influence, authenticity, and emotional appeal that can set your brand apart from competitors. Whether it’s creating meaningful connections through storytelling, extending reach and engagement, or boosting product endorsements, athlete influencers can add a compelling dimension to your Black Friday marketing strategy. By aligning your brand with the right athlete and preparing effectively, you can ensure a successful campaign that leads to increased sales. Meanwhile, partnering with Kickfurther can provide the financial flexibility to invest in impactful marketing campaigns, taking your Black Friday strategies to the next level. Gear up for the big game and make this Black Friday season your most successful one yet.

 

What is the difference between cash flow, revenue and profit?

Cash flow, revenue, and profits are three financial measures that are important to understand. Managing business finances is no easy task, but the more you know the better you can manage. As a business owner it’s critical to understand operations and pay attention to details, thus always looking for ways to improve. 

At Kickfuther, we’re committed to empowering business owners and helping them maximize the potential of their company. Through our platform business owners can obtain inventory funding to improve cash flow. Before we dive into the details though, let’s invest some time reviewing cash flow, revenue, and profit and the differences between them. 

What is cash flow, and how does it differ from revenue and profit?

As a business owner, or future business owner, you’ll need to understand finances – or hire a trusted party to take care of them. Whether you manage them or hire someone else, at the minimum you should know some key measures: cash flow, revenue, and profit.

First let’s review revenue vs. profit. 

Revenue is business income, plain and simple. A business can have large amounts of revenue, and while it’s important to know what revenues are, revenue does not mean a business is profitable. 

Profit is the income of a business after deducting expenses from the revenue or net earnings. Obviously, profitability is a key metric and it’s what will keep businesses afloat and growing. 

Now, let’s review cash flow and how it’s different from revenue and profit. Cash flow is the net amount of cash that comes into and out of a business. A bit more challenging to manage, but probably the most important thing to manage on a day-to-day basis. A business needs a healthy amount of cash flow to cover expenses on the day-to-day. This can get tricky as accounts receivable can be slow to come and expenses need to be covered on-time. Oftentimes businesses use loans or financing to improve cash flow. 

Why is cash flow important for businesses, and how does it impact their operations?

Businesses need cash on hand to cover day-to-day expenses as well as growth and expansion, and everything in between. When businesses make sales the money usually does not just appear instantly in their account. In some cases it may not even come through in a few days. 

For example, a construction company may sign a project, but only receive a deposit to start working. Therefore, they will need funds to cover materials, equipment, labor and everything else necessary to carry out the project. While they may get paid in milestones as they go, you can see where the cash flow dilemma can come into play here. 

Businesses that do not have healthy cash flow may fall behind on expenses, miss out on opportunity, or potentially even fail. Business owners must find ways to maintain a healthy cash flow. One way to do so is by utilizing inventory financing.

How is revenue defined, and what does it represent for a company?

Revenue is the total amount of money generated from business operations, typically measured in set time frames such as annual or semi-annual. Revenue is defined by profit and total earnings. It represents the total amount of financial gain from sales and or services for a business, but does not represent profitability.

What factors can influence a company’s cash flow and revenue?

Revenue is primarily influenced by sales and or services whereas cash flow is influenced by a variety of factors. Below is a list of factors that can influence cash flow.

  • Accounts receivable 
  • Inventory 
  • Accounts payable
  • Operating expenses 

How is profit calculated, and what does it indicate about a business?

While it’s exciting to watch revenue grow, profit is a whole different ball game. When profit starts to grow you are really in the green. Profit is revenue minus total expenses. It indicates how much your business has earned after expenses. 

How do cash flow, revenue, and profit contribute to the overall financial health of a business?

First off a business needs to have healthy revenues to start. If they are not generating revenue from sales, they will struggle to turn a profit. While there are several variables between the revenue and the profit, you’ll want to track these high level measurements to ensure finances are healthy. Whether you have profits or not you should always monitor expenses as well to ensure your business is operating efficiently. Improving efficiency can increase profits, and even revenues too. The last part of the equation is cash flow. Healthy cash flows are an extremely important part of a financially sound business. Just as your personal account needs to have funds in it to cover your bills and expenses when they are due or needed, business accounts are no different. However, the money coming into a business is not as simple as getting paid every Friday. Cash flows typically need to be constantly evaluated to ensure they are properly managed. A cash flow deficit can cause financial hardship for businesses.

Common challenges businesses face in managing cash flow, revenue, and profit

Managing cash flow is an art. It can take time to perfect the formula, so be patient. Becoming more aware of ways to improve cash flow is a proactive way to manage cash flows. Here are some common challenges businesses face in managing cash flow which can trickle down to revenue and profit. 

  • Lack of cash reserves
  • “Wing it” approach (no plan)
  • Growing too fast
  • High expenses and or poor management
  • Inadequate pricing models
  • Delayed payment processing
  • Late payments from accounts receivable or customers
  • Too much inventory 

What are some strategies businesses can employ to increase their revenue and profit while maintaining a healthy cash flow?

Healthier revenues and profits can contribute to healthy cash flows. Here are a few strategies to consider to increase revenue and profit while maintaining healthy cash flow.

  • Evaluate pricing models (if possible raise prices to boost revenue and hopefully profit too)
  • Analyze expenses (determine where you can cut back)
  • Get inventory funding (stock more inventory to drive sales and use funding to free up cash flow)

How Kickfurther can help

CPG (consumer packaged goods) companies often encounter cash flow inconsistencies or deficits due to high inventory costs. The action to counteract this challenge is often inventory financing. While inventory financing can be a smart solution, you may already be aware of the high costs and strict requirements that come along with it. Frustrated yet determined, our founder once struggled to obtain affordable inventory financing that worked for his small business. As a true entrepreneur, he decided to solve the problem he faced for other business owners facing the same one. 

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Why Kickfurther?

  • No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
  • Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.
  • Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.

Closing thoughts

To recap, revenue, profit, and cash flow are all different, but are equally important to monitor. Inventory funding is one way to drive sales thus increasing revenue and profit all the while contributing to healthier cash flow. We encourage business owners to dive in and understand where money is going and coming from. It’s important to invest in ensuring your business maintains healthy finances. If inventory funding can help, visit Kickfurther today to create a free business profile. 

A How To Guide For Zero & First-Party Data Collection and Use

In today’s digital age, customer data has become a driving force behind e-commerce growth, empowering businesses to make informed decisions, understand customer behaviors, and gain a competitive edge. Whether you’re a small start-up or a DTC giant, the ability to capture and effectively use data for growth and retention has become a crucial aspect of omnichannel success.

In this blog, we’ll dive into the world of zero and first-party data and explore how ecommerce businesses can use it to build more effective marketing strategies. We’ll explore the difference between the two types of data and examine the various sources of each on your website.

Then we’ll cover how to collect, store, and analyze zero and first-party data, and how to use it to create personalized customer experiences that drive engagement and revenue.

Data Collection: Defining Data Types

Let’s start with the easy part—deciding what kind of data it is that you’re wanting to collect:

 

Zero-Party Data: Is anything that a visitor intentionally and voluntarily shares with you. Examples include:

  • Product preference indicator (i.e. cat vs dog toys)
  • Polls, surveys, quizzes (i.e. Where did you first hear about us?)
  • Comms preferences
  • Email/SMS signups
  • Birthday

Think of zero-party data as conversational data, like something a friend explicitly tells you. This is commonly mixed up with first-party data, which, while still “owned,” has distinct differences.

First-Party Data: Is anything about a visitor that is passively gathered from interactions and behavior. Examples include:

  • Browsing data
  • Purchase history
  • Offsite channels (i.e. email clicks)
  • Discounts used
  • Social data (i.e. follower count, influence)

Think of first-party data as implied data, like something a friend shares with you indirectly. Still important, still useful—but different from zero-party data in how the user grants consent.

Data Collection: Zero-Party Data

Zero-party data collection strategies are a careful mix of providing a more relevant, personalized experience without asking too much of your visitors. So let’s get into some of our favorite ways to do this on your website:

 

  1. Enhanced Pop-Ups: These are lead captures collecting more than just an opt-in. Add a secondary piece of zero-party data to these to immediately personalize a new subscriber’s welcome experience, like birthdays, product preferences, zip codes, etc. Make sure to actually use this data to provide them with the right user experience right from the start not just collect it and forget it
  2. Quizzes or Surveys: Quizzes/surveys are such an engaging way to interact with customers and can be something you do at the start or leverage in an exit offer to help them find the right item. Finish with a product recommendation that makes it easy for them to continue moving toward the point of conversion.
  3. Comms Preferences: Zero-party data isn’t just a set it and forget it thing, it can evolve over time. Allow customers to change their preferences so they continue to receive the content they want, where they want it, and especially when they want it.
  4. Create an Account: We don’t encourage forcing shoppers to create an account to check out. However, accounts are a great way to continually collect zero-party data and provide additional touchpoints to engage consumers with. For example, a loyalty program, membership, or product subscription program. Gamify data collection for these customers by rewarding every piece of data they share with you while simultaneously providing increasingly more personalized/effective experiences.
  5. Reviews: Product reviews are important to have on your website no matter what since 95% of shoppers read them before making a purchase. But they’re also a gold mine for zero-party data that can be linked up to individual customer profiles or to understand trends for segments as a whole. 

All of these zero-party data collection strategies will help you understand customer needs, their preferences, and why they’re shopping with your brand. The key, though, and what so many brands are lacking in their zero-party data approach, is the next step of properly using that data to personalize communications with subscribers to both delight them and provide value beyond the initial flow. But lucky for you—-we’re going into that below!

Data Collection: First-Party Data

Now collecting first-party data on your website is helpful for predicting trends and inferring likely behaviors to trigger onsite messaging AKA pop-ups.

 

Here are some of the most effective examples for when to use and collect first-party data onsite

  • Upon add to cart— show product recommendations and curated exit offer
  • Time on site—trigger pop up based on percent scroll, pages traveled, time on specific page
  • Previously ordered—highlight reviews AND UGC of the collection/product
  • URL-based— target a referring URL or opted-in status (aka gave you their email and/or SMS)
  • Location-based—show certain messaging based on locale

 

Use first-party data to get ahead of conversion objections and frictions. Combine your onsite experience data like that listed above with heatmaps or session recordings and you’ll be able to unlock a whole new level of customer understanding. All without asking anything more of your customers.

 

Putting Your Zero & First-Party Data To Use

Now that you’ve started gathering zero and first-party party data using one or multiple of the above methods, it’s important to actually use it.

Customers are providing this with the expectation it will be used to better their experience, not just sit in the backend of a database somewhere. And that’s where automation comes in.

The welcome series based on the data points collected in the opt-in is a great place to start. It’s small, but it makes a big first impression since so few brands are doing it. Justuno customer, Premama, does this extremely well via a drop down selector in their lead capture asking the subscriber’s parenthood stage. The stage selected determines which branch of their welcome flow they go down, with content tailored precisely to the right products and resources someone would need. 

Subsequent campaigns feature different product recommendations, educational content, etc. for a continually personalized experience.

 

Then they check in again with consumers to see if they should update their stage and adjust their messaging accordingly. There’s that always-on approach to data collection coming into play!

Once you’ve created a strategy for initial use it’s important to keep collecting and feeding subsequent data points collected into more advanced automations to maximize the value of your campaigns.

But beyond that it’s important to think about your data application strategy within the larger context of your customer journey. Map out all the touchpoints a visitor might have and where you can collect or use existing data to improve it. From clicking a retargeting ad with the same item they browsed before and reading product reviews with UGC and customer attributes, to not asking existing email subscribers to sign-up for your newsletter and beyond. The key is to create a seamless look and feel for consumers that effortlessly guides them towards conversion. 

It’s important to note that while we’ve really only covered the collection and use of zero and first-party data in the context of your website it’s use isn’t limited to just that. It can extend to the other aspects of your business like:

  1. Inventory Forecasting: Build a better understanding of what customers are shopping for and when to avoid sell-outs and excess inventory. Something Kickfurther can also help with!
  2. Product Development/Improvement: For example, if you have a trend of bad reviews that a product breaks often or wishing you made XYZ item.
  3. Feature Implementation: Zero-party data can help dictate where to focus new retention efforts, like introducing a loyalty program or adding a product subscription option.
  4. Content Marketing: Improve performance by understanding what interests customers the most and how they interact with it.

It all comes down to establishing trust by using the data shared with you to power personalized experiences. Once you start, it will have an exponential impact on your business in almost every area.

 

Final Thoughts

The key to scalable zero and first-party data collection/use is organization–make sure that you’re using the data you are collecting, finding gaps in your program, & adjusting strategy accordingly.

Unorganized data can lead to major no-nos like not actually personalizing the flow (or worse, sending the wrong one).

Finally, you’ll want to tie together how you’re using this data elsewhere throughout your MarTech stack. Take the zero and first-party data you collect elsewhere via channels like loyalty programs, subscriptions, memberships, etc. and feed that data back into your website experience & continuously refine and personalize your campaigns.

Interested in applying some of the zero and first-party data strategies we outlined? Try Justuno free for 14-days to see what kind of data you could be collecting from your website visitors!

Customer Satisfaction and Order Fulfillment – How to Get it Right

In the world of eCommerce, things change quickly. But one fact remains constant – order fulfillment and customer satisfaction are inseparably tied together.

In this blog post, we’re going to talk about why this is, with specific details and examples. This is no abstract concern – customer satisfaction is a necessary ingredient for retention, which is what separates the most successful companies from the average ones. Then we’re going to talk about how you can optimize your order fulfillment processes to maximize your customer satisfaction, and along with it, revenue.

Customer Satisfaction & Order Fulfillment Are Tied Together

Defining customer satisfaction might seem simple on the surface. Everyone intuitively understands what it means – it’s a measure of how well a company’s products and services meet, exceed, or fall short of customer expectations. But how do you measure that? And furthermore, how do you optimize for that? That’s where the simple definition falls short.

Customer satisfaction is a recipe with a lot of ingredients. On the kitchen counter, you’ll find customer service, ease of purchase, product delivery, and even the company’s overall reputation. The seamless blend of these factors, combined together, eventually bakes into a satisfying customer experience.

Think about the experience of ordering a book online. The quality of the book itself is only part of the satisfaction equation. It doesn’t matter if the book is a classic of the entire Western literary canon or if it has five stars on Goodreads if the book is so damaged from rain that it’s unreadable.

If you order a textbook online and a shipping delay leaves you doggy-paddling through the first two weeks of lectures with no text material to reference, that’s not a great experience either.

It’s no accident that both of these examples of bad customer experiences involve shipping issues. Order fulfillment is make or break in eCommerce.

Why Order Fulfillment Is (Sometimes) A Magnet For Customer Satisfaction Issues

Every eCommerce order has to be shipped, and order fulfillment itself has a lot of steps that can go wrong. When a customer places an order, that specific product must be picked from inventory. Then the item proceeds to the packing stage, where the item is carefully wrapped and prepared for shipping. Postage is printed and applied, then a local carrier delivers it to the customer’s home.

If inventory levels show a product in stock when it’s not, the experience goes sour. The same is true if the wrong item is shipped or if the order is shipped to the wrong address. And if the local USPS carrier has a bad day and kicks the package across your customer’s lawn, that’s a problem you’ll have to deal with too (even if it’s not your fault)!

Consider this – according to OptimoRoute, 84% of consumers are unlikely to shop with a brand again following a poor delivery experience. This statistic underlines the tremendous impact of order fulfillment on customer satisfaction.

Imagine the frustration of receiving a long-awaited product, only to find it damaged due to poor packaging or late due to sluggish delivery. Such instances tarnish the overall customer experience, lowering satisfaction rates.

But it’s not all doom and gloom. In fact, good order fulfillment processes can increase your odds of satisfying customers.

Strategies for Improving Customer Satisfaction Through Order Fulfillment

Improving order fulfillment might seem difficult and all-consuming, but there are a handful of broad strategic changes you can make that will have a disproportionately large and positive impact on the ultimate result.

Here are six that come to mind:

1. Streamline Order Processing

If you want to ensure a seamless customer experience, order processing needs to be very smooth. Whenever a customer places an order, the information needs to be sent to a fulfillment center through a software integration. That way, the people shipping orders will have everything they need to get started with no manual intervention.

It sounds simple, but a lot of businesses still manually process orders! Even if you’re shipping from home, you can configure your Shopify store to help you quickly create the postage you need so all you need to do is pack, print postage, and slap on the label.

2. Master Inventory Management

“Out of stock.”

No customer wants to see these words and you need to do everything in your power to make sure they never do.

Avoid such disappointments by implementing real-time inventory tracking and predictive analytics. These strategies will help maintain optimal stock levels, preventing inventory shortages and fulfilling customer orders promptly.

This is fairly complex to do, so here is a more detailed guide on the subject.

3. Pick A Reliable Fulfillment Partner

Once you’re shipping about 100 orders per month, it’s time to hire a fulfillment partner. At that point, the cost of shipping on your own is likely to exceed the cost of hiring someone to help. And even if it doesn’t, outsourcing will save you a bunch of time.

However, hiring the wrong fulfillment partner can create a lot of problems. Do your due diligence and choose one with a great reputation for timely delivery and communication. It’s an arduous process at first, but it pays off in the end when packages start going out faster than you could ever manage on your own!

4. Communicate Often

From sending order confirmations to providing delivery updates, proactive communication can help manage customer expectations, build trust, and enhance satisfaction. To give you a concrete, and somewhat silly example, Domino’s does this with their Pizza Tracker!

Even delivery delays and mishaps can be made better by taking a proactive approach to communication. Getting a package two days late is bad. Being completely in the dark about why the package is late is worse.

5. Have a Generous Return & Refund Policy

No one likes returns, but they are inevitable. Making the return process easy and transparent will help maintain customer satisfaction, even when things go wrong.

Be clear about your policies, offer free returns when possible, and process refunds promptly. This way, even a return experience can become a positive touchpoint for your customers.

6. Offer Personalized Experiences

Personalization is key to winning customer loyalty. Use customer data to offer personalized product recommendations, special offers, and communication. This can make customers feel valued and appreciated, enhancing their overall shopping experience.

 

Keep in mind, however, that as good as these strategies are, in order to truly achieve success, you’ll also need to track your performance and identify areas for improvement. The next section talks about how you can do that.

4 KPIs to Track to Ensure Great Order Fulfillment

If you’re looking for a way to gauge your progress, you’ll need key performance indicators (KPIs). In order fulfillment, four KPIs stand above the others.

  • Order Accuracy Rate: The proportion of orders delivered without errors, highlighting the effectiveness of your order processing.
  • Order Cycle Time: The speed from order placement to delivery, providing insights into your process efficiency.
  • Rate of Return: The quality of delivered products, with a lower return rate usually indicating satisfied customers.
  • Customer Feedback: Though not quantitative, it’s still really important. Surveys, reviews, or direct interactions can serve as critical indicators of customer satisfaction, pointing towards areas needing improvement.

What gets measured, gets done. Pay attention to these four KPIs when making changes to your order fulfillment processes. If you make a point to monitor these indicators and act on them, your odds of meaningfully improving your order fulfillment processes go way up, and that paves the road for improved customer satisfaction and, ultimately, revenue. 

 

You can’t decouple order fulfillment and customer satisfaction, especially not in eCommerce. Bad order fulfillment processes can frustrate your customers, but good order fulfillment processes can delight them.

Remember, the goal is not just to meet customer expectations but to exceed them, turning each order fulfillment into a memorable customer experience. 

Final Thoughts

Outsourcing fulfillment to a 3PL can be tremendously beneficial for your growing eCommerce brand. With the right 3PL partner, you can reap numerous benefits, such as reduced shipping costs, improved efficiency, and the ability to focus on your core business activities.

Finding the right 3PL is a daunting task, to be sure. However, once you know why outsourcing makes sense, you can follow the ten steps in this guide to find the right 3PL and get off to a great start.

Don’t hesitate to explore your options. The right 3PL partner is out there, and once you start working with them, it will be well worth the time put into finding them!