Lara Guevara explains how campaigns that look successful can actually lose money. A fast sell-out forces you to spend more on customer service. Deep discounts of 30-40% off boost revenue but crush margins. Long supply-chain lead times drain cash without profit.
Chapters
There are 3 ways a winning campaign loses money. One, sold out on day 3 or in the middle of the campaign. The rest of your budget, instead of using it in ads now, you spend it to refine your customers and more budget for your customer service because you are now going to need more customer service to answer the questions of those angry customers. Number 2, discount is thicker than margin. During DFCM, you do 30%, 40% discounts. And if your revenue went up but your profit went down, sometimes you only found out after a CFO told you after a quarterly report or after the books is closed. That's also running a campaign and then not earning from it. I think that's the worst part. Then last is the risk of flags too late, the supply chain lead time part. This is why it hurts a little bit because you actually did the job. The money left the account.