Why is it that the management of digital marketing pipelines is so often overlooked?
A project’s pipeline balance includes many factors, such as cash flow management and client engagement. It also involves planning future projects. We’ll look at ways to stay in control and how you can make pipeline management an essential part of your project plan.
Assess Your Resources
The capacity of your pipeline determines how much work you can do and at what pace. Consider the available time and any technology you may possess when calculating your total resources.
It’s not worth claiming you can complete 150 hours of work or write 12 reports in one week if you do not have the tools to do the job quickly.
Knowing exactly what you’ve got at your disposal will allow you to queue projects more efficiently, allowing you to inform clients about deliverables and monitor your progress.
By identifying your limitations, you can plan to remove them, increase capacity, and add value through investment in technology or by improving your digital marketing skills.
Being Honest with Clients and Estimating Time Properly
A digital marketer will often grossly underestimate the time it will take to do something. It can result from hubris or the desire to say what people want to hear.
Little’s Law is a surprisingly simple mathematical theorem that relates a decrease in project pace to the number of projects in a project pipeline. In layman’s language, a project’s pipeline can experience delays “because the project has been successful.” This success encourages introducing more projects, leading to even more success. Eventually, you have a clogged pipe, and your projects slow down.
By not accurately estimating how long it takes to generate leads, discover, engage, and plan all of the factors that are necessary for a pipeline, time is “lost.”
What is the solution? Track every second, even the time it takes to keep track. It may seem difficult initially, but it should become second nature after some time. By knowing how long it takes to do something, you can make accurate estimates, identify roadblocks, and determine time-consuming activities that aren’t financially viable.
Cash Flow
Did you know 82 % of small businesses fail due to cash flow issues? Digital marketers cannot survive without cash flow. Cash flow problems can cause financial hardship for anyone, regardless of position.
Understandably, not everyone loves the whims of financial planning or accounting. We all like to see money in our accounts and may even fist-pump a bit when payment is cleared, but we also dread the fear of an upcoming bill or waiting for a client that promised they would pay “any day now” three weeks ago. Cash-flow management can be a rollercoaster of emotions.
You should start by having a good idea of what you will spend in the next 3 to 6 months, and then a vision for further ahead. Depending on your requirements, You can use various tools to assist you, such as Mint and Business scale solutions. You’ll need to know your income and expenses in the coming months and weeks.
Milestones for Clients
Clients must be informed of their obligations regarding sign-off and payment dates to keep the money train moving smoothly. Some people can be kept awake at night by the thought of discussing such matters, but this shouldn’t happen. You’ve worked hard for your money, so you shouldn’t be ashamed to ask for it.
Cash flow problems arise when payment is expected upon completion of a project. This might be great for the client, but it can be a nightmare for the digital marketer’s cash flow. This means that you will be living from project to project. You’ll experience huge highs, followed by a gradual drop and then possibly a rock bottom. What if the client refuses to pay? What if the client demands extra work not included in the contract? What if the company goes bankrupt? These are valid concerns and signs that the pipeline is poorly managed.
A great way to prepare for rainy days is by being a wise saver. Budget everything down to the last penny. Milestones, or agreed-upon points in the plan for digital marketing where deliverables and money are transferred, are a more viable option. One might ask for three equal payments. One at the beginning, one in between, and one upon final delivery. Knowing that your hard work will be rewarded if you work on a project for several weeks or even months is important. You can decide to either continue the project or say that you will pause it and then move on to the next person.
Recurring revenue: Building on its foundation
You can also avoid cash flow issues by ensuring your plans are based on recurring revenue. You could generate recurring revenue through regular blogging or part-time social media management. When planning your project, you should consider whether you can choose the clients and hours that work for you.
Decide how you will split your time, such as 60% on new projects and 40% on recurring income. It may be comforting to have a steady income, but it’s also important to consider your career progress. You may find that spending too much time on something current will put you behind the leaders of your industry in two years. This is without considering the important and valuable notion of upgrading clients (i.e., Searching for higher-paying clients to replace low-paying ones.
Digital marketing is fast-paced, and we all need to move forward. Sometimes, ideas, talents, and clients are left behind. To make your pipeline healthier and progress personally towards becoming a digital leader, you must keep learning, exploring, and trying new things.
Work and dedicate time to lead generation and sales
It is not just apocalyptic survivalists who plan for the future. If you want to abandon the cycle of project work constantly in peak and trough, it’s important to have another project waiting for you when one is completed.