Irrespective of your business’ standing in the market, influencer marketing is one way you can leapfrog to number one without investing a bomb. There have been many cases where small brands (akin to King David) have used the heft of influencer marketing to increase the market share of established players (Goliath’s) in the market.
To do this, you need to have a kickass influencer marketing strategy that can help you increase sales and conversions to a preset goal. Getting the right value for money in advertising and marketing has traditionally been very challenging to measure, as there was no way you could be sure that the marketing message reached the target audience. This was during the time of TV, radio, and print media.
With influencer marketing, however, it is quite easy to measure if the marketing campaign is going in the right direction and that each dollar spent has been worthwhile.
Methods for measuring influencer marketing ROI
Stick to your niche
You have to make sure you work within your niche. The more generalized you get, the more costly and ineffective the campaign becomes. For example, if you are a brand dealing in trekking shoes, it makes sense to hire only those influencers who specialize in adventure tourism. If you use the services of a general male grooming influencer to promote trekking shoes, you may end up with lesser sales as people may mistake the shoes for regular fashion shoes.
You have to be to the point when it comes to measuring the outcome of your influencer campaign. You can give your influencer a target to achieve, anything above that can get him additional money. This way, you can reach your marketing goals while letting the influencer earn an additional income.
Keep a tab on metrics
Reports suggest that a successful influencer marketing campaign can generate more than $9 for every dollar invested. If you are looking to get such kind of returns, you will need to measure all kinds of metrics of the campaign on social media and third-party influencer platforms.
Tools for measuring influencer marketing ROI
Before you launch your influencer marketing campaign, you will need to use a host of tools to pick the right influencer, keep track of metrics and manage post-campaign sales analytics.
Once you have decided on the theme and other features of your campaign, it is time to choose the right influencer for it. Here is where many brands fail. Finding an influencer that fits the brand’s identity is easier said than done. To make matters easier, brands use an influencer marketplace that helps choose the right influencer. There are many such marketplaces available- Quikplace, ACTIVATE, AspireIQ, Famebit, and so on. Choose one based on past performance, ease of use, and features that you need.
You will need Google Analytics to track website visits, unique visitors, traffic to the site, and much more. You can use Google Analytics as it is or with Salesforce, Adobe Analytics, or integrate its API with the influencer tracking software you may have (if possible).
Social Media platform analytics
Facebook, Instagram, and other social media platforms have their own platform-specific metrics that you can freely track. This includes impressions, views, comments, hashtags, and likes. The trackable data may vary from platform to platform.
For deeper social media insights, you will need to use a third-party analysis tool. This tool will integrate your entire campaign into a single platform where you can track social and other metrics from a single interface. You can choose from Hootsuite, HypeAuditor, or Sprout Social.
Unique influencer promo codes given by your influencer can help you know how well the campaign is going. Usually, these promo codes give a set percentage of discount on purchase or sign up. Interested prospects can use this code to purchase within a set period.
If you want to track Click Through Ratio (CTR), the best way to do so is through a trackable link. You could shorten a URL, create a custom URL for each influencer or use a special URL that can be easily remembered. These links make it easy for marketers to track clicks, impressions, sales, and conversions.
Dedicated Landing pages
Sometimes, it makes sense to develop a dedicated landing page made especially for the campaign. Through this entry point, you can track conversions, visits, and other metrics redirecting from the influencer’s branded post.
Facebook ads have this special conversion tracker called a conversion pixel. This is a small 1x1px image that is coded onto the destination page. Whenever the image loads, it is counted as a visit.
As it is with every marketing campaign, there is no guarantee for a positive influencer marketing outcome. Instead, you have to work with your influencer to create content that helps convert. Many times, this means giving your influencer creative freedom and having only a single point of communication between you and your customer. Whatever you do, always ensure someone is checking the campaign content at least once before it is published, you cannot afford to harm your online reputation due to any kind of mistakes.