Data Security - Don't call us. We'll call you.

Data Security - Don't call us. We'll call you.

How the data explosion can help you find customers before they even know they're looking for you. Australia has reached peak smartphone, according to a recent survey that reports more than 90 per cent of adults have one. And what's more, we can't leave them alone - with many of us checking our screens more than 50 times a day. This device addiction, coupled with staggering amounts of personal information gathered by titans such as Facebook and Google, has created a wave of data business owners can ride all the way to the bank, marketing experts say. Ross Meadows, managing director of digital marketing agency Media Booth, says new techniques leveraging this data to micro-target consumers are incredibly powerful and cost effective. But many SME owners simply aren't aware of them. "When we go to a business, about 80 per cent of our job is actually educating them about what is possible," Mr Meadows says. Data surpassed oil as the world's most valuable resource in 2017, with good reason. "It's stupidly powerful and if businesses aren't using it, they're crazy," Mr Meadows says. One of the fastest-growing trends in data is using location information to target consumers through either geo-fencing or geo-targeting. These take advantage of the fact most phones not only log users' online profile and search habits (through Facebook and Google), but record their home address and track their physical movements through GPS or phone towers. Combining this data allows advertisers to target the right people (by age, gender and interests) at the right time (when they may be actively searching for your product) and in the right location (by where they live or have visited). While it sounds complex, Mr Meadows says it is actually an incredibly cost-effective way for SMEs to advertise, because they're only paying to reach an ideal demographic, rather than thousands of people who may not be interested. It's a laser focus, compared to an old-fashioned scatter gun approach. Used cleverly, these tools can help SMEs compete against larger companies with big budgets and better brand awareness. So, what is the difference between geo-fencing and geo-targeting and how can SMEs use them effectively? Geo-targeting This is the more personalised of the two tools and is used to find a 'look-alike audience' - that is, consumers who fit the same demographic profile of a business's existing customer base. (To gather this data businesses need to ensure they are using code such as Facebook pixel on their website.) The starting point is a location. Geo-targeting leverages the IP (Internet Protocol) address of phones and computers - so it targets people where they live. After selecting focus suburbs, the audience is refined according to data points such as age, gender, relationship status, interests and income (depending on how much data they have shared online), then ads are delivered via Facebook or Google to this select audience. This approach gets an extra boost from the fact people often find ads targeted to their interests (for example books, or home renovation) useful, rather than annoying. A recent Media Booth campaign aimed to find a look-alike audience to promote a new range of reading glasses for a large Sydney firm, Mr Meadows says. The company drilled down to a highly targeted demographic of potential customers and smashed the goal. "The campaign was supposed to run for two weeks but it got turned off after two days because they sold out," he says. It's important to note marketers never see an individual phone user's identity, with data profiles anonymised by providers. Geo-fencing By contrast, geo-fencing focuses purely on location - so where a consumer is, rather than who they are. It's a sphere where the most ingenious marketing is taking place. To geo-fence a zone, business owners draw a virtual ring around target areas on a digital map and push ads out to devices detected entering or leaving that defined area. The technique uses real-time GPS tracking data - often running in apps such as Google Maps - that have become so accurate, the latest iterations can pinpoint a user to within 30cm of their location. In the past, this technique has been used by small retail businesses, particularly cafes, to lasso local foot traffic. However, the increased accuracy of location data has spawned some more exciting guerilla marketing trends. In 2018, digital marketing agency Ansible launched the Dealer Stealer campaign for Hyundai which involved geo-fencing the address of rival car dealerships and pushing Hyundai ads to users' phones. It's the digital equivalent of running into a competitor's shop and handing out flyers. Geo-fencing is particularly effective because research indicates 82 per cent of consumers search products in-store before making a purchase - providing the perfect opportunity for your ad to be served. Mr Meadows says he also geo-fences trade shows to hit specific target markets. "I've got one coming up next month and I will geo-fence the entire thing because it's a small to medium business event. I will put a circle around the event and pump out ads," he says. At a recent event, Mr Meadows said attendance was 45,000 and data indicated his ads were pushed out to 38,000 users. "That's only 7,000 people who didn't actually see it. That's staggering numbers,'' he says. It's a cost-effective way to market to consumers who have already signalled an interest in your product or service, and the potential is boundless. Lawyers could geo-fence police stations, physiotherapists could focus on gyms, and pet shops or vets could target dog parks. Its use is limited, at present, only by imagination and the growing accuracy and scope of data.

Cutting the Gap - How to maximize cash flow

Mind the Gap

Cutting the lag between money out and money in can save you thousands. Are you doing all you can to loosen the cash squeeze?

"You need to spend money to make money" the saying goes, but the real key to business success is cutting the gap in between.

Small businesses can often find themselves caught out by the delay between outlaying on suppliers and receiving payment from customers. The longer this cycle, the more cash a business needs to cover running expenses while money is tied up elsewhere.

But there's a lot that SME owners can do to cut the lag, with new technology making it easier to run a tight ship.

Invoice immediately Bill clients when work is completed, or your product or service is delivered, not at the end of the week, fortnight or month. It's a false economy to think going through invoices in batches is more efficient.

When a business takes a week or more to send an invoice, clients may presume they are in no hurry to get paid. Conversely, online payment company Due reports invoices issued the same day a job is completed are 1.5 times more likely to be paid on time.

Discount prompt payment Offer a discount to clients who choose to pay early, say within 14 days rather than 30. Or if you have shorter terms, make sure clients don't drift past the due day by offering on-time discounts. Follow-up with an automated text or email through systems such as Xero or MYOB when the discount period is about to lapse.

Make it easy Studies indicate procrastination, not lack of funds, is the reason many invoices are paid late. Businesses can avoid getting relegated to the ''I'll do this later'' pile by making their invoices as simple to understand as possible. That means no surprise costs a customer may need to query.

E-invoicing should be standard practice as it's cheaper and faster. Include as many payment options as possible, all with click-through links. Anything that requires a debtor to work harder - cutting and pasting account numbers, for example - risks them abandoning a task until later.

Cut stock Running a tight inventory ship can be a delicate balance. Slow-moving stock can be a killer but you need to have enough to hand to be responsive and reliable.

This is where software can make a dramatic difference to track and identify slow-moving products and changing sales cycles. There is a dizzying array of inventory management software. If you're unsure where to start, ask your accountant or talk to other SME owners at business networking events.

Dig into data Big data is becoming more and more accessible to small business owners. They've always had the information, the problem was they didn't have the time, skills or software, to analyse it. New tools are making it easier for SMEs to drill down into existing information.

The cost of paying an accountant or digital marketing expert to help set up systems to analyse trading data can more than pay for itself. For example, sales records can identify high-margin, high volume products or services - your profit drivers. Once a business has this, delving further into customer metrics can identify what types of person or business is the main buyer, allowing a business to pivot your marketing to focus on this client demographic. Facebook and Google Analytics are good starting points.

Consider shorter payment terms The past few years has seen a huge push by the Australian Small Business and Family Enterprise Ombudsman, along with the Federal Government and Business Council of Australia to highlight the hardship that long payment terms place on small businesses.

SMEs should consider leveraging goodwill to shorten payment terms. It is also worth checking whether clients have existing small business policies. A recent review found SMEs were unaware many large companies had special payment policies in place to fast-track payments to SME suppliers1.

Chase debt early Set a process for chasing overdue accounts promptly. Systems such as Xero can be set up to send reminder emails, for example at three days overdue or seven days overdue. After two weeks, experts recommend phoning to get a commitment to pay. Business Victoria has a range of escalating debt recovery templates from ''friendly reminder'' to ''final demand''.

Stretch your terms On the flipside, monitor your outgoings and make sure you aren't paying your invoices too promptly, sending money out the door before you need. Automated payment systems can schedule payments to maximise cash flow.

Focus on finance Review the finance you are using. If you run a line of credit, review it regularly to make sure the limits and terms are competitive and suitable for your business. Consider invoice finance if you need liquidity fast. Like to apply for a business loan - Contact Awesome Lending Solutions

1 Review of payment terms, times and practices, Australian Small Business and Family Enterprise Ombudsman, pp 8, March 2019.

Please note we do not provide tax, legal or accounting advice. This article has been written for general informational purposes only and is not intended to provide, and should not be relied on, for tax, legal or accounting advice. We encourage you to consult your own tax, legal and accounting advisers before engaging in any transaction.