Kirana Connect is a growth-stage retail tech business in India. The CMO has ₹113 Cr of annual acquisition budget and has been asked to justify next year's plan.
Last year's spend and results:
| Channel | Spend | New customers | Cost per acquisition |
|---|---|---|---|
| Paid search — non-brand | ₹53 Cr | 1,712 | ₹309579 |
| Paid search — brand | ₹14 Cr | 2,293 | ₹61055 |
| Paid social | ₹25 Cr | 1,965 | ₹127226 |
| Affiliates & retargeting | ₹21 Cr | 2,153 | ₹97538 |
Unit economics:
The board has asked for a 30% increase in new customers next year without an increase in budget. The CMO's instinct is to move money into brand search, which shows by far the lowest cost per acquisition.
| spend | channel | new customers |
|---|---|---|
| 53 |
| Paid search — non-brand |
| 1712 |
| 14 | Paid search — brand | 2293 |
| 25 | Paid social | 1965 |
| 21 | Affiliates & retargeting | 2153 |
Recommend an allocation. Your answer should provide:
State any assumptions you make.
100 points, 60% to pass.
LTV and payback; per-channel CAC; incrementality of brand and retargeting; test-and-scale allocation