How To Super Charge Your Marketing Strategy With Xero
Bad news first: If you don’t know your numbers, you are losing in so many areas of your business.
Good news: I will teach you how to determine what to market next in your business from an easy cloud system. Plus, I have a few research tips to help you get off to the right start.
If you have a small business with low sales, it’s easier to identify which products and services to give market love to, which ones to dispose of and which ones to keep as evergreen products and services (evergreen means they will always remain). If you have a nice variety of products or services and get consistent sales, keeping up with conversion rates and statistics may not be so easy because you’re busy fulfilling orders or servicing clients. As a matter of fact, if you’re that busy, you may not be paying attention to products or services that aren’t earning you money at their full potential.
**This post contains affiliate links.
Busy is good, especially if you are profitable on a consistent basis. If you’re busy but not so profitable, this post will help you identify where to focus your attention by generating income reports with Xero.
If you’re not familiar with Xero, it’s a cloud-based accounting system that makes your small business or freelancer life easier. I wrote about its benefits in a post explaining why small business owners have such a mess during tax season. This is a must read. Open this post in a different tab and read it next.
Your accounting system, no matter which kind you use, needs to do these things at minimum: identify your income paths, assess variance performance (don’t let the terms scare you, this means the highs and the lows in your finances), and allow you to compare periods at one time.
Xero will help you identify healthy money paths with income reports. You need income reports to know where money typically comes from. After you set up accounts per product or service, Xero will record every transaction for you.
For example, if you have coaching services (that’s one account), brand or content audits (that is another account), plus sponsorships and digital products (two more accounts), you’ll create different accounts for each of those money paths. You can create your own account numbers so Xero will know where to classify your transactions.
Coaching Services - 005
Brand/Content Audits - 010
Sponsorships - 015
Digital Products - 020
The good thing about Xero is that it integrates with several payment systems. So, if someone purchases anything from you online or in person (with Stripe, Square or Paypal Here, etc.), it syncs with those payment systems and records the transactions for you.
Once you get set up and synced, generating income reports will be smooth. The set up is the only one-time hard part. Income reports are what you’ll need to identify where your sales are coming from.
I bet you’re wondering what in the heck all of this has to do with marketing. It has a lot to do with marketing. Here’s why:
Using Xero to assess your sales and revenue is the easiest way to record and collect research data on autopilot. It will easily help you generate reports to see what’s selling and what’s not, how much money is going out of the business (these will be monthly expenses and monthly charges from your bank account) and how much money is coming into the business.
Once you have your income reports, you’ll create a new marketing strategy or revamp your old one after reviewing these three things:
Your lowest sales over the last quarter.
Your highest sales over the last quarter.
The sales that are consistent over the time period.
Now take action!
For the products that aren’t selling much because of lack of promotion
Record how many times you’re promoting this product and/or service where you promote them on and offline. (Tip: Look at your content calendar, past scheduled calendar on Hootsuite or Buffer).
Determine your marketing approach in the past. Then, develop a different approach to attract the right people who need or would want your product or service. Maybe you’ve been giving tips teaching how to use your offer through blogging and webinars. Now you need audio content with slides to show them why they need what you have to offer.
For the products that are selling with maximum promotion
Review your sales for the entire year or last 6 months. Find the peak time when your products are selling the most. Review your marketing strategy around that time frame. Go back to look at your content and social media feed. Review what you were posting and what people were saying about it.
Let’s pretend your sales have a peak in February, right before, spring break. Whatever you were doing to promote sales at that particular time, double it. If you were collaborating with 5 people to boost sales, collaborate with 10-15 brands this year. Add in some additional classes as well as ads too if you want! Amp it up!
Apparently, this time of the year your target market wants to spend and your brand message encourages them to spend with you. Keep this strategy!
For the products that aren’t selling with maximum promotion
If you have products that aren’t moving and you’ve given your all to promote them, it’s time to re-assess the viability, revamp it to cater to the demands of your market, or re-purpose it (do away with that particular concept) to create a better product.
All of these strategies will help your brand get in a profitable position. Remember that some of your paid offers will or will not be successful. Sometimes you’ll have an amazing idea that you know your audience needs, but they aren’t ready for it yet. Sometimes you’ll come up with something that sounds okay but no one is checking for it (it happens to the best of us). Sometimes you just need to present what you have to offer in a different way. It may not be the product, it’s just your approach. That's why looking at your income reports is a necessity.
Before you get rid of anything, think about why you created it, who it is for, and what’s missing. When it’s all said and done, you should make an informed decision to revise and relaunch or discard your concept.
Xero is one of the best cloud-based accounting systems that you can use for your small business. As you can see, it’s not only good for recording your business transactions on autopilot. It’s perfect for researching your financial position to guide your marketing strategies in the right direction.
Ready to implement these strategies yourself? Here’s what you do next:
Sign up for the free trial here.
If you’re using another accounting system, import your data to Xero using their help guide.
If you don’t have an accounting system, set up all of your company information like usual (name, logo, location, tax settings, payment info, etc.)
Set up accounts (this is where you’ll assign your products/services unique accounts). The tech term is called chart of accounts. It’s just a list of your account numbers, the name of the account, and the balance in each account.
Add your bank info
Go to apps or settings to set up your payment system integration. This will allow Xero to record daily sales and refunds for you. That’s no manual work for you!
Start using it for your day to day transactions.
After a quarter period, generate your income report (if will be under Reports> Financials> Income Statement). Filter the report from lowest sales to highest and use the analysis strategies in this post to determine your next marketing moves.
Xero will help you assess, revise, and super-charge your marketing by creating reports for your company at face value. Get started asap. Be sure to PIN this post to revisit at a later date and share with your business buddies because they'll need it!