Digital Campaigns: 4 challenges when investing

How much to invest in digital marketing campaigns is a dilemma that all companies face from time to time. There are four fundamental challenges_

  • The investment amount is not well defined.
  • Not having achievable and realistic objectives.
  • Assume that growth will be linear.
  • Lack of capital to invest more.

1. Not knowing how much to invest in digital platforms.

The most common dilemma: assuming that sales through social media or search engines will be cheap. Mistake. It is common to find that customer acquisition cost expectations are very low and therefore unrealistic.

The first step is to determine the maximum cost per customer acquisition without damaging the margin; How much could you pay for a sale? Keep in mind that depending on the industry and type of product, the cost will vary depending on the average ticket.

2. Unattainable objectives

The second factor is determining how much to spend vs. expected sales; How much do you want to sell? 100 thousand dollars a month? Maybe it is an ambitious goal, but the right question would be, is it achievable?

There are many factors that are involved in this sense: do you have the production capacity to achieve it? Do you have enough inventory? Does logistics allow it ? Do you have the equipment to achieve this goal?

These questions are essential to draw up a realistic sales objective, on which the sales and therefore investment objectives will be built.

the objectives in a digital campaign

Assume growth is linear

The more investment, the more sales, right? If today you are selling 10 thousand dollars with an investment of one thousand dollars, the logical thing would be to invest 10 times more and for sales to grow in proportion. Mistake.

There are many factors that influence growth, to mention a few, customer service, the elasticity of the platforms, the value proposition, the target audience , the digital channels through which you are advertising, etc.

The growth of an e-commerce is not always linear

Do not invest more

If you are clear about the costs of acquiring new customers (CAC) and have a market on which to grow, you are faced with the fourth dilemma; You already have an objective, sales channel, growth metrics , customer acquisition costs and a budget, but you are stuck because you can't invest more; Then it's time to get financing.

There are financing platforms that can help you in these cases, with which you could invest more in digital media or improve your logistics processes.

For example, Fairplay is a digital platform dedicated to financing companies that sell through marketplaces or e-commerce and have an important competitive advantage: you will pay the interest on your loan according to your sales, that is, this platform trusts both the performance of the companies in which you invest that share the risk with you.

How do they achieve this? Learn more about them here 

If you want to know more about this topic or require advice, at MHA you will find the solution,  because my commitment is to guide you in the best way in this extremely competitive digital age.

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