How Do You Measure The ROI And Effectiveness Of Your Influencer Marketing Campaign?
It’s safe to say that Influencer Marketing has found its place within the marketing mix, it’s not going anywhere soon and has become a powerful tool for brands in today’s age of social media. Many of the most iconic brands in recent times have come to the fore with an all-in approach to Influencer Marketing, e.g. Gymshark, which is now one of the fastest growing businesses globally.
However, with anything new making its way in the world, there are questions and scepticism around it, especially if you’re doing it wrong. So, how do you measure the effectiveness and the ROI of Influencer Marketing, what metrics should you be looking at? Today, we will answer your question and show you all!
Firstly, when any brand is looking to commit to spending even $1 in any form of marketing, we need to look at the goals of the campaign and the potential returns. We always ask our clients three key questions - What are you trying to achieve? Who are you trying to target? And, what are your campaign objectives? We reverse engineer from the agreed outcome to make informed decisions about which influencers and platforms best capture the target audience’s attention to develop long-lasting engagement and business impact.
Now, let’s talk about the goals and how you can measure them.
Many will see brand awareness as a given with any marketing activity, let alone influencer marketing. However, to be seen and wanted by your target audience is one of the main goals of brands. Even if you’re working with just one micro-influencer with a few thousand followers, you’ll want to know how many eyeballs have seen your brand or been exposed to your brand. The metrics to look at here, cover total reach and impressions. How many times a post has appeared on people’s timelines and how many unique impressions there was.
Engagement goes one step further than brand awareness, here we look at the audience that how they have actively engaged (link clicks, left a like, a comment, dislike, shares, followed your brand etc) on the content for the particular campaign. To look at the effectiveness of the engagement, you need to look at the influencers previous engagement rate and how the campaign compares. Higher engagement rate (likes, comments, shares, link clicks etc) indicates the audience enjoyed the content and appreciated the campaign. The next logical step would be to work with the influencer(s) again to continue building your relationship with them and their audience.
Lower engagement rate (low likes, high dislikes, low views etc) will indicate that there was something wrong with the campaign. Perhaps the wrong influencer was selected, the content was poorly put together or there wasn’t a particularly good audience fit.
Whether you’re trying to shift perception, provoke a reaction or test the waters, influencer marketing is a great way to understand audience’s sentiment towards your brand, products or campaign. There are numerous ways to look at the sentiment, either through comments in videos or pictures (what people are saying positive, negative, neutral?), the like to dislike ratio, amount of web traffic or another way is through polls on influencers stories on Instagram for example.
If you’re a watch brand and you have a dilemma about which colour watch to produce, you could simply run a poll on a few influencers stories that hit your target audience demographics, you’ll see results almost instantly. Through analysing the sentiment you’ll be able to see which social platforms react best to certain pieces of content, enabling you as a brand to prioritise your marketing spend towards those platforms.
Everyone wants to sell more, let’s face it, when you market your brand or service, the hope is that the audience will buy or use it. Influencer Marketing is a great way to increase sales or conversions and there are many ways to track the success. However, before beginning the campaign understand your sales figures for a few months previous and benchmark against these figures. Are you selling more with or without the chosen influencers?
If you’re a beauty brand, partnering with influencers to increase sales of a product, you can track sales through tracking links and discount codes, unique to each influencer you’re working with. By ensuring each link and code is unique, not only can you see day to day analysis and whether certain offers work best on certain days, but you can figure out influencer conversions. Which influencers are performing best and converting more of their audience to sales vs ones that aren’t performing well and have very little actual influence over their audience.
If you’re a mobile gaming company and your goal is to increase downloads using influencers, you can then track this through clicks on trackable links and then downloads of the game. Through this data, you can see the conversion metrics as before and you’ll be able to prioritise your top performing influencers for further marketing.
Influencer marketing is an incredibly powerful marketing tool if you have a concrete strategy in place (please see our previous blog for tips on this) and you know what you’re looking to achieve or measure. The above metrics will allow you to put together an Influencer Marketing campaign with confidence and understand the true power of the campaign performance.