To set up an efficient budget, calculate the cost of customer demand generated by your promotion. For instance, if your tailored promotion targets an audience of 100,000 repeat customers with a 10% discount and your brand’s average order value is $30, the minimum budget calculation would be: $30 * 10% * 100,000 * 5% = $15,000. Avoid setting unrealistically low budgets for substantial discounts to prevent budget overspending during high-traffic events.
If you’re reading this, then you probably have revenue and profitability targets in mind, but you either don’t have the resources or you’re not sure how to get there.