# Reverse KPI — LATAM Variant

> Region: Latin America (Brazil, Mexico, Colombia, Argentina, Chile, Peru)
> Currency: USD (cross-border) or local (BRL, MXN, COP, ARS, CLP, PEN)
> Locale: WhatsApp Business dominant (90%+ penetration), low CPM, payment installments expected, Mercado Libre dominant in e-commerce.

---

## LATAM-specific benchmarks for reverse KPI

### Average deal size (AOV) — local examples

| Industry | B2C AOV typical (USD) | Local examples |
|----------|----------------------|----------------|
| DTC e-com (apparel) | $20–$100 | BRL 100–500, MXN 350–1,800 |
| DTC beauty/skincare | $25–$120 | BRL 130–600, MXN 450–2,100 |
| DTC supplements | $20–$100 | BRL 100–500 |
| Education / coaching | $80–$800 | BRL 400–4,000, MXN 1,400–14K |
| Health services | $30–$300 | Local |
| SaaS regional | $300–$3K | USD-priced typical |
| Real estate | $20K–$300K | BRL 100K–1.5M |
| Local services | $15–$150 | Local |

### Currency reference (rough rates for planning, 2025–2026)

> Always check live rates; use these as planning estimates only.

| Currency | Per 1 USD |
|----------|-----------|
| BRL (Brazil) | ~5.0 |
| MXN (Mexico) | ~17 |
| COP (Colombia) | ~4,000 |
| ARS (Argentina, volatile) | ~1,000+ |
| CLP (Chile) | ~950 |
| PEN (Peru) | ~3.7 |

> **ARS volatility:** Argentine peso fluctuates massively. Plan in USD, convert at point of payment.

### Conversion rates by industry (LATAM)

| Industry | CTR | Click → WhatsApp/Lead | WhatsApp → Lead | Lead → Sale |
|----------|-----|------------------------|------------------|-------------|
| DTC apparel | 1.2–2.5% | 18–28% | 60–75% | 25–40% |
| DTC beauty | 1.5–3% | 20–32% | 65–80% | 28–45% |
| DTC supplements | 1.3–2.8% | 18–28% | 60–75% | 25–40% |
| Education | 1.3–2.8% | 15–25% | 55–70% | 8–18% (Lead→Enroll) |
| Health services | 1.5–3% | 20–32% | 60–75% | 30–50% |
| Real estate | 1.0–2.0% | 12–22% | 40–55% | 6–15% |
| SaaS regional | 0.8–2.0% | 10–18% | — | 14–25% (Trial→Paid) |

### CPM / CPL / CAC (LATAM 2025–2026)

| Channel | CPM (USD) | CPL (USD) | CAC range (USD) |
|---------|-----------|-----------|-----------------|
| Meta — DTC | $0.50–$2 | $1–$5 | $5–$25 |
| Meta — service (WhatsApp click) | $0.50–$2 | $0.80–$3 | $3–$15 |
| TikTok Ads | $0.50–$1.50 | $1–$4 | $4–$18 |
| Google Search | (CPC $0.20–$1) | $2–$10 | $8–$30 |
| Mercado Ads (BR/MX/AR) | (CPC $0.10–$0.40) | — | $3–$15 |
| Magalu Ads (BR) | (CPC $0.15–$0.50) | — | $4–$18 |
| WhatsApp Business broadcast | ~$0.005/msg | $0.50–$2 | $3–$12 |

> LATAM CPMs comparable to SEA — among the cheapest globally. WhatsApp dominates customer journey.

---

## Example 1 — Reverse calc: Mexico DTC Skincare, $30K/month revenue target

**Inputs:**
- AOV: $45 (≈ MXN 765)
- Industry: DTC skincare
- Channels: Meta + TikTok + WhatsApp Business
- Funnel: Click → WhatsApp Business → Sale

**Reverse calculation (Base scenario):**

| Step | Pessimistic | Base | Optimistic |
|------|-------------|------|------------|
| Revenue target | $30,000 | $30,000 | $30,000 |
| AOV | $45 | $45 | $45 |
| **Customers needed** | **667** | **667** | **667** |
| Lead → Sale | 25% | 35% | 45% |
| **Leads needed** | **2,668** | **1,906** | **1,482** |
| WhatsApp → Lead | 60% | 70% | 80% |
| **WhatsApp clicks needed** | **4,447** | **2,723** | **1,853** |
| CTR (click-to-WhatsApp ad) | 1.5% | 2.2% | 3.0% |
| **Impressions needed** | **296,467** | **123,773** | **61,767** |
| CPM | $1.80 | $1.20 | $0.80 |
| **Ad budget** | **$534** | **$149** | **$49** |
| **Conversational handling cost** | $1,200 | $800 | $500 |
| **Total cost** | **$1,734** | **$949** | **$549** |
| **ROAS** | **17.3x** | **31.6x** | **54.6x** |

**Read:**
- LATAM CPMs are so low that ad spend is small fraction of total cost
- Real cost is WhatsApp staffing (1-2 sales reps to handle inbox)
- Plan with $1K base + $1K WhatsApp ops = $2K total

> Caveat: WhatsApp conversion requires fast, human responses. If reps overloaded, conversion drops dramatically.

---

## Example 2 — Forward calc: Brazil DTC Fashion, $4K/mo budget

**Inputs:**
- AOV: $35 (≈ BRL 175)
- Industry: DTC fashion
- Channels: Meta + Mercado Ads + WhatsApp

**Forward calculation:**

| Step | Pessimistic | Base | Optimistic |
|------|-------------|------|------------|
| Budget | $4,000 | $4,000 | $4,000 |
| Blended CPM | $1.20 | $0.80 | $0.50 |
| **Impressions** | **3.33M** | **5.0M** | **8.0M** |
| CTR | 1.0% | 1.6% | 2.5% |
| **Clicks** | **33,333** | **80,000** | **200,000** |
| Click → Lead/Cart | 18% | 25% | 35% |
| **Leads** | **6,000** | **20,000** | **70,000** |
| Lead → Sale | 22% | 32% | 42% |
| **Orders** | **1,320** | **6,400** | **29,400** |
| AOV | $35 | $35 | $35 |
| **Revenue** | **$46,200** | **$224,000** | **$1.03M** |
| **ROAS** | **11.6x** | **56x** | **257x** |

**Read:**
- Optimistic ROAS of 257x is unrealistic at scale (audience saturation)
- Realistic operating range: 10-50x ROAS for DTC LATAM at small budgets
- Budget growth limited by audience size, not CPM

---

## LATAM-specific cost considerations

| Cost line | Typical % of revenue | Notes |
|-----------|---------------------|-------|
| Ad spend | 8–20% | Among cheapest globally |
| COGS | 25–45% | Similar to global avg |
| Shipping (within country) | 5–12% | Mercado Envios/Loggi (BR) |
| Payment processing (Brazilian Pix) | 0.5–1% | Pix is cheap, fast |
| Payment processing (cards/Boleto) | 2.5–4% | Higher than Pix |
| Returns / refunds | 10–20% | Lower than US (no free returns) |
| Tax (BR Nota Fiscal compliance) | 1–3% (admin) | Plus ICMS, IPI varies |
| WhatsApp Business ops (staff) | 5–15% | THE major cost line — staff to handle DMs |
| Software / tools | 2–5% | Local CRMs (Pipedrive, RD Station) |

### WhatsApp Business pricing (Meta API, 2025)

| Conversation type | Cost (USD) | When charged |
|-------------------|------------|--------------|
| Marketing | $0.0625 / conversation (BR) | When you initiate |
| Utility (transactional) | $0.025 (BR) | When you initiate |
| Service (within 24h customer-initiated) | Free (within free tier) | First 1,000/mo free |
| Authentication | $0.0367 (BR) | OTP messages |

> Pricing varies by country; BR/MX/AR rates differ. Service window (24h after customer message) is free for unlimited messages.

---

## LATAM-specific seasonality

| Period | CPM impact | Action |
|--------|-----------|--------|
| Black Friday (Nov BR/MX) | +30–60% | Brazilian "Black November" all-month |
| Christmas / Reyes Magos | +25–45% | Heavy gift buying through Jan 6 (MX/AR Reyes) |
| Carnival (BR, Feb/Mar) | -20% (cheap, low engagement) | E-com pause; experience marketing peaks |
| Mother's Day | +20–35% | Local-specific (BR May, MX May 10) |
| Father's Day | +15–25% | Aug in BR, Jun in MX |
| Día de los Muertos (MX, Oct/Nov) | Cultural sensitivity | Specific campaigns acceptable |
| Buen Fin (MX, Nov) | +30–50% | Pre-Black Friday MX equivalent |
| Argentina inflation cycles | FX-dependent | Plan budget in USD, convert real-time |

---

## LATAM examples by industry

### DTC beauty in Brazil ($40 AOV)

```
Goal: $25K/month revenue (= 625 orders)
WhatsApp-driven funnel
CPL $1.50, WhatsApp→Sale 30%
Required leads: 2,083
Monthly budget: 2,083 × $1.50 = $3,125 ad spend
+ WhatsApp ops: 1 rep × $800 = $800
Total: $3,925/mo for $25K revenue
ROAS: 6.4x
```

### Education in Mexico ($400 ACV)

```
Goal: 50 enrollments/month
CPL $5, Lead→Enroll 10%
Required leads: 500
Monthly budget: 500 × $5 = $2,500 (Meta + Mercado Ads)
+ WhatsApp/email nurture: $500/mo
Total: $3,000/mo for $20K revenue
ROAS: 6.7x
```

### DTC fashion (Argentina, USD-priced to hedge ARS)

```
AOV $30 (priced in USD due to ARS volatility)
Goal: $15K/mo
Orders: 500
WhatsApp + Mercado Libre dual channel
Blended CAC: $8
Monthly budget: $4,000
ROAS: 3.75x
Margin: 45% → BE-ROAS 2.22x → safe
```

---

## LATAM payment installment ("parcelado") math

In Brazil and many LATAM countries, **parcelado** (installments) is expected. Example:

```
Sticker price: BRL 500
Customer sees: "12x R$ 41,67 sem juros" (12 monthly payments without interest)

Merchant receives: BRL 500 today (minus card processing fee + parcelado fee)
Card processor: 2.5% + 1-3% per installment (depending on bank)

Effective revenue per BRL 500 sale: ~BRL 470-485

Always factor parcelado fees into AOV calculations — net AOV is 3-7% lower than sticker price.
```

---

## Quality checklist — LATAM variant

- [ ] Currency confirmed (USD, BRL, MXN, COP, ARS, CLP, PEN)
- [ ] If ARS: hedged in USD, FX volatility budgeted
- [ ] AOV reported NET of parcelado fees and processing
- [ ] WhatsApp Business funnel costed (ad + staff + WhatsApp API)
- [ ] Local payment methods (Pix BR, OXXO MX, Boleto BR, Mercado Pago)
- [ ] Brazilian Nota Fiscal compliance if B2B/larger sales
- [ ] Mercado Libre/Magalu/Americanas integration if e-com
- [ ] Black November / Carnival / Día de los Muertos seasonality factored
- [ ] Localized Spanish/Portuguese (per country)
- [ ] WhatsApp ops cost line included (staff)
- [ ] Mobile-first design verified

---

## Cross-reference

- Full SKILL.md router: `../SKILL.md`
- Other regions: `01-us.md`, `02-eu.md`, `03-sea.md`
- Performance eval: `../../03-performance-eval-global/variants/04-latam.md`
- Channel setup: `../../11-channel-setup-global/variants/04-latam.md`
