# Performance Evaluation — LATAM Variant

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

---

## LATAM-specific benchmarks (2025–2026)

### Paid ads benchmarks

| Metric | Poor | Average | Good | Excellent | Your data |
|--------|------|---------|------|-----------|-----------|
| **Meta — CPM** | >$3 | $0.50–$2 | $0.30–$0.50 | <$0.30 | [#] |
| **Meta — CPC** | >$0.30 | $0.10–$0.20 | $0.05–$0.10 | <$0.05 | [#] |
| **Meta — CPL** | >$5 | $1.50–$5 | $0.80–$1.50 | <$0.80 | [#] |
| **Meta — CTR** | <1% | 1–2.5% | 2.5–5% | >5% | [#]% |
| **Meta — CPA (e-com)** | >$10 | $4–$10 | $2–$4 | <$2 | [#] |
| **Google Search — CPC** | >$1.50 | $0.20–$1 | $0.05–$0.20 | <$0.05 | [#] |
| **Google Search — CTR** | <2% | 2–5% | 5–10% | >10% | [#]% |
| **Google Display — CPM** | >$1.50 | $0.40–$1 | $0.15–$0.40 | <$0.15 | [#] |
| **TikTok Ads — CPM** | >$2 | $0.50–$1.50 | $0.20–$0.50 | <$0.20 | [#] |
| **TikTok Ads — CPC** | >$0.30 | $0.10–$0.20 | $0.04–$0.10 | <$0.04 | [#] |
| **TikTok Ads — CTR** | <0.7% | 0.7–1.8% | 1.8–4% | >4% | [#]% |
| **Mercado Ads — CPC** | >$0.40 | $0.10–$0.25 | $0.05–$0.10 | <$0.05 | [#] |
| **Magalu Ads (BR) — CPC** | >$0.60 | $0.15–$0.40 | $0.08–$0.15 | <$0.08 | [#] |

### Funnel conversion

| Step | Average | Good | Your data |
|------|---------|------|-----------|
| Impression → Click | 1.5–3% | 4%+ | [#]% |
| Click → WhatsApp/Lead | 18–30% | 35%+ | [#]% |
| WhatsApp → Lead qualified | 55–70% | 78%+ | [#]% |
| Lead → Sale | 25–40% | 50%+ | [#]% |
| Customer → Repeat (90d) | 25–40% | 50%+ | [#]% |
| E-com platform conv (Mercado Libre) | 1.5–3% | 5%+ | [#]% |

### Email + organic + WhatsApp

| Metric | Poor | Average | Good | Excellent | Your data |
|--------|------|---------|------|-----------|-----------|
| Email open rate | <14% | 18–25% | 25–35% | >35% | [#]% |
| Email click-through | <1% | 1.5–3% | 3–5% | >5% | [#]% |
| **WhatsApp Business read rate** | <60% | 70–85% | 85–95% | >95% | [#]% |
| **WhatsApp Business click rate** | <8% | 12–20% | 20–30% | >30% | [#]% |
| **WhatsApp Business reply rate** | <15% | 25–40% | 40–55% | >55% | [#]% |
| TikTok engagement rate | <3% | 4–8% | 8–13% | >13% | [#]% |
| Instagram engagement rate | <0.8% | 1.5–3% | 3–5% | >5% | [#]% |

> WhatsApp dominates LATAM — read rates often exceed 90%. Email is secondary.

### Industry-specific CAC / AOV (LATAM)

| Industry | Typical CAC | Typical AOV | Healthy LTV:CAC |
|----------|------------|-------------|-----------------|
| DTC e-com (apparel) | $3–$15 | $20–$100 | 3:1+ |
| Beauty / Skincare | $4–$18 | $25–$120 | 4:1+ |
| Education / coaching | $8–$50 | $80–$800 | 4:1+ |
| Health / supplements | $5–$25 | $30–$150 | 3:1+ |
| Fintech (Pix in BR) | $2–$10 | LTV-driven | 3:1+ |
| SaaS (regional) | $30–$200 | $300–$3K | 5:1+ |
| Real estate | $20–$150 | $20K–$300K | 5:1+ |
| Local services | $2–$15 | $15–$150 | 3:1+ |

---

## Common pitfalls — LATAM market

| Pitfall | Why it hurts | Fix |
|---------|--------------|-----|
| **Ignoring WhatsApp** | 90%+ market uses it daily; email is secondary | Build WhatsApp Business funnel first |
| **No installment pricing (parcelado)** | BR consumers expect 3-12x parcelado | Show "12x sin juros" / "12x sem juros" prominently |
| **Currency volatility (ARS, BRL)** | FX swings hurt margin overnight | USD base pricing, convert dynamically |
| **Mobile data bandwidth issues** | Slow loading kills conv rate | Lite landing pages, WebP images |
| **Cash payments (Boleto in BR, OXXO in MX)** | 30-40% prefer non-card methods | Integrate Boleto, OXXO, Pix, SPEI |
| **Tax complexity (BR Nota Fiscal)** | Required for B2B and many B2C | Compliant invoice integration |
| **Carnival / holidays** | Spending pauses during holidays | Adjust budget around Carnival, Día de Muertos |
| **Spanish ≠ Spanish across countries** | MX Spanish ≠ AR Spanish ≠ CO Spanish | Localize per market, not just translate |
| **Trust issues with online payment** | Phishing/scam history | Visible trust signals, COD fallback |
| **Seasonality flipped vs N hemisphere** | Summer = Dec-Feb in BR/AR/CL | Plan content/promos around inverted seasons |

---

## Regional case study — LATAM E-commerce (Mexico)

**Brand:** DTC skincare, Mexico City. AOV $42 USD. Target audience: women 25-45, urban.

**Symptoms:**
- ROAS 1.6x (target 2.5x+)
- Cart abandonment 78%
- Email open rate 16% (target 25%+)

**5-Whys:**
| Round | Why? | Answer |
|-------|------|--------|
| 1 | Cart abandon high? | Checkout friction |
| 2 | Friction? | No OXXO/SPEI option, only credit card |
| 3 | No OXXO? | Stripe-only setup, doesn't support OXXO natively |
| 4 | Why Stripe-only? | US-style setup imported, didn't localize |
| 5 | Why not localized? | No LATAM e-com expertise on team |

**Action plan:**
1. Add Mercado Pago (Mexico-native) for OXXO + SPEI
2. Add WhatsApp Business — recover abandoned carts via WhatsApp (not email)
3. Switch primary CTA from "Comprar" website → "Habla con nosotros" WhatsApp
4. Localize: MX Spanish copy review, peso pricing prominent

**Result (6 weeks):**
- Cart abandon → 58%
- WhatsApp recovery: 22% of abandons converted
- ROAS → 2.8x
- Repeat rate up 15% (WhatsApp re-engagement)

---

## Dropshipping context — LATAM

LATAM dropshipping is growing fast but has specific challenges:

| Factor | Impact | Tactics |
|--------|--------|---------|
| Long shipping from China (30-60d) | Huge cancel/refund rate | Brazil-based 3PL, Mercado Envios |
| Customs (BR especially complex) | Packages stuck or taxed | Use compliant logistics (Yanwen + agent) |
| Currency volatility | Margin can flip overnight | Hedge via USD base pricing |
| Cash payments preferred | Boleto/OXXO conversion higher than card | Multi-payment integration |
| Mercado Libre dominant | Most product searches start there | List on ML, drive ads to ML page |
| WhatsApp customer support | Customers expect 1:1 chat | Dedicated WhatsApp Business team |

**LATAM dropshipping ROAS targets:**

| Margin | BE-ROAS | Healthy ROAS | Scale ROAS |
|--------|---------|--------------|------------|
| 30% | 3.33x | 4.0x | 5.5x+ |
| 40% | 2.5x | 3.2x | 4.5x+ |
| 50% | 2.0x | 2.5x | 3.5x+ |
| 60% | 1.67x | 2.2x | 3.0x+ |

> Note: LATAM margins similar to SEA — cheap CPM allows higher margin products.

---

## LATAM-specific compliance flags

| Area | Rule | Impact on ads |
|------|------|---------------|
| Brazil — LGPD (data protection) | GDPR-equivalent | Consent banner + processing notice |
| Mexico — Federal Data Protection Law | Privacy notice required | Update privacy policy |
| Argentina — PDPA Law 25.326 | Consent + DNI safeguards | Opt-in for marketing |
| Colombia — Habeas Data (Law 1581) | Strict consent | Updated consent flow |
| Brazil — Nota Fiscal (NF-e) | Required for B2B and B2C sales | Integrate NF-e issuance |
| Mexico — CFDI invoice | Required for B2B | Invoice integration |
| Anvisa (BR health/cosmetics) | Pre-approval for claims | No "treats" or "cures" |
| Cofepris (MX cosmetics) | Registration required | No unapproved health claims |
| Influencer disclosure (BR CONAR) | "#publi" / "#publicidad" | Required on all paid posts |
| WhatsApp Business policy | No spam, opt-in required | 24h customer-initiated window for free messaging |

---

## LATAM-specific channel mix recommendations

For most LATAM brands:

| Channel | Recommended split | Why |
|---------|------------------|-----|
| **WhatsApp Business** | 25-40% | DOMINANT in LATAM, build funnel here |
| Meta (FB+IG) | 25-40% | Strong, especially Instagram for younger demos |
| TikTok | 15-30% | Fast-growing, low CPM |
| Mercado Libre / Mercado Ads | 10-25% | E-commerce dominant |
| Magalu / Americanas (BR) | 5-15% | BR-specific marketplaces |
| Google (Search + Shopping) | 10-20% | Search lower than Meta in LATAM |
| Email | 5-10% | Lower priority — WhatsApp wins |
| TikTok Shop (rolling out) | 5-15% | Fast-growing, especially BR/MX |

---

## Quality checklist — LATAM variant

Before delivering LATAM performance evaluation:

- [ ] Currency clarified (USD or local — BRL, MXN, COP, ARS, CLP)
- [ ] WhatsApp Business funnel exists and tracked
- [ ] Local payment methods integrated (Pix BR, OXXO MX, Boleto BR, Mercado Pago)
- [ ] Installment pricing displayed (12x sin/sem juros)
- [ ] Mobile-first design verified
- [ ] Country-specific compliance (LGPD BR, LFPDPPP MX, etc.)
- [ ] If e-com BR: Nota Fiscal integration confirmed
- [ ] Currency hedging strategy for ARS/BRL volatility
- [ ] Localized Spanish/Portuguese (not just translated)
- [ ] Carnival/holiday seasonality factored
- [ ] If dropshipping: BR-based 3PL or LATAM logistics planned
- [ ] WhatsApp opt-in compliance verified (24h window)

---

## Cross-reference

- Full SKILL.md router: `../SKILL.md`
- Other regions: `01-us.md`, `02-eu.md`, `03-sea.md`
- Reverse KPI calculation: `../../10-reverse-kpi-global/variants/04-latam.md`
- Channel setup: `../../11-channel-setup-global/variants/04-latam.md`
