Digital Campaigns: 4 challenges when investing

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

• The investment amount is not well defined.
• Not having achievable and realistic goals.
• 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 cost per customer acquisition expectations are very low and therefore unrealistic.

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

2. Unachievable goals

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's an ambitious goal, but the right question would be, is it achievable?

There are many factors that are involved in this regard: do you have the production capacity to achieve it? Do you have enough inventory? Do logistics allow it ? Do you have the team to achieve this objective?

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

Assuming growth is linear

The more investment, the more sales, right? If today you are selling $10,000 with an investment of $1,000, it would be logical to invest 10 times more and for sales to grow proportionately. 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.

invest no more

If you are clear about the costs of new customer acquisition (CAC) and have a market on which to grow, you are faced with the fourth dilemma; You already have a goal, sales pipeline, growth metrics , customer acquisition costs, and a budget, but you're stuck because you can't invest more; then it is 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 based on your sales, that is, this platform trusts both the performance of the companies you invest in 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 highly competitive digital age.