Have you ever wondered what drives consumers to go with a particular brand over another in today’s crowded online marketplace? Why they hold some companies closer to their hearts than the others? The answer is pretty straightforward: some brands are better at developing brand sentiment, loyalty, and recall than others. One of the most effective strategies for achieving all three is influencer marketing.
So: how does influencer marketing fit into the overall marketing mix of a company?
This is the fundamental psychology of trust: consumers prefer peer recommendations. Consumers trust their network, which is what makes positive recommendations so powerful. Customers are more than twice as likely to take onboard suggestions from friends and family as they are from advertising. In today’s hyper-connected world, a single recommendation can have great impact — which is hugely important for any business, especially considering that it is a free, organic form of advertising.
Influencer marketing is a new evolution of WOMM. Consumers tend to gather pre-purchase product information online before the ultimate decision-making process in today's digital age. This information can be acquired through influencers from various sources — idyllic pictures on Pinterest or Instagram, in-depth product review videos on YouTube, or discussions in threads on Instagram or Twitter.
Which KPIs does influencer marketing cover?
The possibilities of influencer marketing are endless. Still, you need to measure its performance to fine-tune the campaign as you go. How do you do that? Here are some metrics you should be looking at to determine how well your campaign is working for you.
Referral traffic — or the traffic your website receives when it is “referred” to people by a third party — is worth monitoring if you want to know your influencer marketing campaign’s reach.
Tools like promo codes and Urchin Tracking Module (‘UTM') parameters are useful if you want to track your referral traffic. After analysing and comparing the results from Google Analytics, you can gauge the effectiveness of your campaign.
Increased sales are your ultimate business goal; if you are achieving this, then this marketing method is working in your favour.
You can track sales after marketing your products through influencers to know whether it is yielding results. To track the sources of the converted customers, you can set up affiliate links, UTM parameters, promo codes, and landing pages.
Engagement is another essential KPI as it provides an insight into how well your marketing tactic was received. If the previous KPIs address quantitative results, this KPI will analyse the qualitative metrics of your campaign.
If the creator’s audience receives the campaign positively, you will make lasting connections with them and convert them into loyal customers. The actions taken by the audience (comments, likes, subscribes, shares, and views) will tell you how deeply they are engaged.
What needs does influencer marketing meet?
This popular social media marketing technique has many benefits and brings a company closer to its business goals. Let’s take a quick look at the business needs that influencer marketing meets.
Brand awareness: As your products get shared by multiple influencers, users will start recognising your brand.
Boost your revenue: When all is said and done, every company wants to generate more revenue. Through influence marketing, you are getting more targeted traffic which drives conversion, all of which generates revenue.
If you are looking for a cost-effective, fuss-free, and practical approach to strengthen your digital media presence, you need to include influencer marketing as part of your 2021 strategy!