How to Boost Your ROI With the
Help of Influencer Marketing?
The global market at the current time is highly competitive, which makes it quite difficult to earn a high ROI. The businesses need to focus on attracting new customers. Now, as businesses are moving online gradually, making use of online opportunities to interact with customers becomes important. In such circumstances, influencer marketing comes as a great opportunity as it allows the brands to connect and use the following of the influencers to increase their ROI.
What is Influencer Marketing?
Influencer marketing, in simple terms, is a marketing strategy wherein the influencers with a good following on the Instagram platform collaborate with the businesses to help them improve their ROI and gain a better customer. The brands choose to work with the influencers who have millions of followers, but as customer engagement is more essential, the influencers who have a small following can even work efficiently in getting the desired outcomes.
Influencer ROI - How to Improve?
Undoubtedly, ROI is a major performance indicator that clearly specifies the profitability the business is earning. Influencer marketing ROI can be 11 times higher than the regular digital marketing options. In fact, some surveys have revealed that every dollar one invests in influencer marketing will help businesses generate about $5.2 in return. This means it is absolutely worth it. Here’s how agency influencers will work to generate higher ROI for the business.
• Spreading awareness
Undoubtedly recommendations and word of mouth work great in improving purchasing decisions. Consumers rely on someone whom they trust for making the purchase of a product or service. Herein they trust the influencers. So when the influencers are using the online platforms to recommend a brand’s product or services, that will help increase the sales and awareness about the company.
• Generating more leads
The influencers are dedicated to engaging followers on platforms like TikTok, Instagram, YouTube and other social media platforms. When the influencers post about a specific product or service, the followers will check out. Thus it will allow the business to convert them into clients. Influencer marketing here acts as a great public relations tool. It will help send out important messages to the targeted audience. When used properly, it was quite a powerful way to increase sales.
• Giving credibility to the business
Influencer marketing can be quite effective in boosting the brand’s credibility. In fact, it has the potential to present the brand as an expert in the industry. By understanding the influencer terms and strategies, one can make use of it to the best possible. Taking help from influencers who have a good social media presence will allow the product or service to be viewed as an authentic option leading to better sales and ROI.
Why is Influencer Marketing Effective?
When you ask someone like your friends or family about their opinion on a specific product and get a negative review, you probably must have passed on the product. While in case the review was positive, then you will be confident about the purchase. Recommendation plays a great role in the purchasing decisions of the consumers. In fact, it is found that about 50% of all the purchases are made of the recommendations.
People rely on the recommendation when purchasing a product for the first time on spending a big amount. Influencers in the current time are so effective because they provide recommendations. They are just everyday regular people who share information about a product. This is the same as a family member. 30% of the consumers now rely on the influences to get an honest review about the product before purchasing.
Given how influential the influencers are in the current scenario, the businesses are making use of this opportunity to reach well to the audience and encourage them to make a purchase.
When you choose to invest in influencer marketing for promoting a brand, then it will come with great benefits. For every $1 invested in the program, your business can generate about $6.50. This means the ROI will be about 650% more than the investment.
It makes it quite easy to reach the targeted audience in a specific market. As the number of viewers increases, the sales will increase further. Thus the ROI from influencer marketing compared to the other mode stands out the most. In fact, it can be 11 times higher than the other digital partner.
Measuring ROI from influencers
Undoubtedly, coming up with an effective influencer marketing strategy is highly important to succeed. But you must also have a clear idea of how to measure the results to make necessary changes.
• Set goals
If you want to see how the influencers are helping with the same, then you have to have specific goals. This means you need to have a clear mind as to what you are trying to achieve before you actually take help from an influencer. For instance, do you want increased followers, increased sales or more exposure? Set a goal that is achievable.
• Give promo codes
When using influencer marketing, you can provide the influencers promo code that they can put up on the blogs; videos are the mediums they use to engage. When the viewer makes use of the code on the website, then you will know where it has come from. It’s a great way to know how effective the influencers have been for you.
They are quite an effective way of measuring engagement on social media platforms. The influencers use hashtags in the post to encourage the viewers to use the same. Besides, on Instagram, you can see the number of people who have used it. Thus it can help get and clear idea of how many people have purchased a product.
• Use tracking pixels
It is quite an easy way to know where traffic is coming from. The influencers can use tracking pixels on their website. When someone clicks on that page, then the tracking pixel will help you see where they have come from. Thus will easily be able to measure your ROI from influencer marketing.
Given how influencer marketing can be helpful, the brands must make use of it in the right manner to benefit. There are influencer guideline templates available online for help. But in the end, taking help from a good company that has experience in the industry is extremely important. It will help get customized services that will surely bring the best results for the brand.