Influencer Marketing is no different from any other business expense – it is only of value if it produces the required return on investment (ROI). Unlike traditional marketing campaigns, however, it was initially more difficult to measure ROI and tie influencer marketing leads to a particular increase in conversions. Influencers were instead reliant on driving awareness with their vast audiences, rather than sale conversions. Island Influencers has a sophisticated system which relies on data and analytics to allow us to track conversions, providing accurate insights on ROI.
Influencer marketing can produce, on average, an astounding $6.50 return for every $1 invested, and $20 or more for those excelling.
The optimal way to measure ROI from influencer marketing will depend on the underlying goal of your business’ influencer marketing campaign. Are you trying to increase sales, sign-ups, or sell more subscriptions? Increase brand visibility or establish collaborations? Each of these reasons is valid but the ROI will differ in each case, as will the measurement of the return. Moreover, while an influencer marketing campaign can occasionally generate clear results, through readily apparent statistics like the number of engagements or followers connected to a post, other types of conversions are less obvious. The task becomes even more challenging when you need to distinguish between multiple channels and influencer campaigns.
Careful planning is a must – without it, you will be unable to ascertain whether the influencer drove the conversion or another sales channel was responsible. On top of planning, businesses can adopt the 5 key methods frequently used by online marketers to demonstrate the relationship between marketing efforts and outcomes.
1 Tracking correlations
This involves connecting the event with the next stage of the conversion. For example, the publishing of a post by an influencer with new subscriptions in the following week.
2 Promo codes
Customising promo codes for influencers to share with their followers is an easy way to track impact.
3 Trackable links
Providing a different trackable link for each post of content shared by an influencer is another straight forward way to determine where traffic comes from.
4 Conversion pixels
Positioning conversion pixels on your website will enable you to identify people who have visited your site due to what an influencer has shared with them even where they have not followed the influencer’s link. Up to 40% of influencer traffic can be identified in this way.
Create a hashtag and encourage influencers to share that hashtag with their followers. You can then tally the use of the hashtag to assess the effectiveness of the influencer’s campaign.
Business also need to be prepared to try different approaches. If one campaign fails to inspire genuine interest, experiment with a different influencer. And of course, register with Island Influencers for more tips and access to the most loved influencers visiting the Island.