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 key 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 further.

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 expectations of cost per customer acquisition are very low and therefore unrealistic.

The first step is to determine the maximum cost per customer acquisition without harming 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 goals

The second factor is determining how much to spend vs. expected sales; how much do you want to sell? $100,000 a month? Maybe it's an ambitious goal, but the right question is, is it achievable?

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

These questions are essential to establish a realistic sales objective, and sales and therefore investment objectives will be built on them.

Assume that growth is linear

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

There are so many factors that influence growth, to name a few, customer service, platform elasticity, value proposition, target audience , the digital channels you are advertising through, etc.

Do not invest more

If you are clear about your new customer acquisition costs (CAC) and have a market to grow, you are faced with the fourth dilemma: you already have a goal, sales channel, growth metrics , customer acquisition costs and a budget, but you are stuck because you cannot 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 so much in the performance of the companies in which it invests that they 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 possible in this highly competitive digital era.