4 Simple Ways To Measure The ROI Of Influencer Marketing
With mass amounts of online shopping during quarantine, thanks in large part to influencers (tie-dye sets anyone?), influencer marketing isn’t going anywhere. In fact, in the last year, an affiliate and influencer marketing platform called Refersion saw a jump from $238 million in sales to $423 million—a nearly 82% year-on-year growth rate (Source).
Even with its meteoric rise, many brands still struggle with understanding the value and return on investment for these types of partnerships. The good news? Influencer marketing is one of the most trackable forms of marketing there is today.
Think about it. When you purchase a magazine ad, you cannot determine how many people saw your ad. The only numbers you can glean from that type of ad are circulation numbers. With influencer marketing, you can track many different KPIs and determine from those if the campaign was successful or not.
Tip: Before you get started with influencer marketing, it’s essential to establish the campaign’s goals. Not all influencers are created equal. Each type of influencer—nano, micro, mega—will have different strengths and be better suited for different objectives.
1. Visibility
Brand Awareness is one of the best goals for influencer campaigns. Whether you’re a new brand or trying to launch a new product, working with an influencer is a great way to introduce your brand and products to a new or more extensive audience.
2. Engagement
This KPI takes a good look at how interested people are in the product. We measure this in terms of likes, comments, saves, shares, and clicks. Are people taking action on the content? Are they sharing it with friends? Are they saving the post for later? Are they swiping up to learn more about your product from Instagram stories?
3. Content
If your brand doesn’t have a big creative team and is looking for top-notch user-generated content, partnering with an influencer is a great idea. If consistent content is a goal, think about a long-term partnership with the influencer. A long-term partnership is best for both parties involved. The influencer gets to really get to know the product—if they don’t already—and weave it into their lives seamlessly. Brands can negotiate rights usage of the influencer’s content on their social media feeds.
Tip: Look for influencers that are already fans of your brand. It makes the transition from a brand advocate to a partner very smooth.
4. Revenue
If driving sales is your bottom line for working with influencers, good news! It’s one of the easiest ways to show ROI. Generate a custom affiliate link for the influencer and track website traffic and sales from the campaign. Another strategy is to set them up with a custom discount code, so it’s even more enticing for their audience. You can then track how many times the code is used on your website.
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