CFO Insights For more than a decade now, we have operated in a growth economy.
A good CFO is a controlling force for organisational behaviour. In times of growth, CFOs want that bottom line to increase at least as fast as the top line. Revenue is good; profit is better; cash is king. As such, a CFO provides a negative feedback loop on spending and thus brings stability to the company.
CFOs of all people know that you can’t cut your way to growth, and sadly there has been a lot of that this past year. If a CFO perceives that the business is on the upswing side of the recession curve regardless of the economy as a whole then he/she will be more eager to return to spending in key areas.
On the topic of spending. a recent CFO report on spending has shown that both marketing and sales have seen a recovery as companies re-align the efforts towards acquiring customers. We are seeing more of an emphasis towards a ‘self-discovery’ approach to customer acquisition with less of an emphasis on acquiring customer through ‘direct selling‘; which as a channel has been impacted by the pandemic.
Businesses in both the B2B and B2C segments are using online self-discovery processes that guide customers to finding the products their need. If they were doing this already then these processes have been significantly improved and are more prominent in their focus.
Spend across product support has also seen an increase where companies are now expanding their digital reach to support customers on platforms that have seen little utilisation as a support channel such as WhatsApp and Instagram We have also seen growth in companies providing on-site services. From ‘home’ car servicing from Ford (which would normally be done at one of their franchise garages) to ‘home’ computer repairs from Dell – which was a fabulous service that I used this week.
We will be sharing more insights in future posts.
Stay tuned for more…