Influencer marketing has undeniably been one of the most successful advertising strategies in recent years. Collaboration with content creators is a successful option for many organizations, from small businesses to well-known corporations. Instagram appears to be the best place to start, and you can set up your account in just a few steps.
Furthermore, the data analytics that your companies use for marketing should be extended to influencer marketing. Collecting and analyzing these statistics before, during, and after collaboration will ensure you are pursuing successful campaigns, holding your team accountable for successful investments, and credibly finding new avenues for marketing development.
When planning your influencer marketing campaign, you must decide what metrics to look for concerning the influencer to make the best decisions possible and metrics to determine whether your campaign was successful or not.
Choose The Goals Before You Set The Metrics
Before you start looking for and analyzing influencers, your company should decide on the various goals you want to achieve due to the campaign. Here are some examples:
- Brand recognition and traffic
- Reaching out to a new demographic of people
- Increasing sales of a specific product or a category of products in general
These objectives should guide your decision-making as you select analytical metrics for various stages of your campaign.
Essential Metrics To Take Into Account In Influencer Marketing
If you consider using influencer marketing as part of your marketing strategy, you need to keep track of your metrics to ensure a cost-effective marketing channel.
A few key metrics to track to judge your influencer marketing campaign’s performance are listed below:
The goal of influencer marketing is to raise brand awareness among potential customers and influencers themselves, not just to generate sales. Comparing before and after statistics on Google Trends is an excellent way to measure this metric.
For example, if people search for your product/brand name more frequently during the months when you’re running an influencer campaign, you can be confident that your brand awareness has risen.
Return On Investment (ROI)
The primary metric to keep track of when running influencer marketing campaigns is the return on investment (ROI). The revenue or profit generated from an influencer campaign divided by the cost is how ROI is calculated.
Make sure each influencer campaign has its tracking link to see which influencers are delivering a positive ROI versus those who aren’t. Keeping an eye on this metric will help you determine which influencers are most valuable to your company. You should clearly stop working with an influencer if their fees outweigh your returns.
Cost Per Acquisition (CPA)
The cost per acquisition, or CPA, is the amount of money spent to acquire a single customer. Influencer marketing campaigns allow you to determine the acquisition cost by looking at the amount paid to the influencer.
Significantly, you can compensate influencers based on their CPA rates, paying more to those who generate more sales and less to those who create lower conversion rates.
Checking the negative and positive sentiments of potential customers towards your product/brand name on social media platforms like Facebook, Instagram, or Twitter is another way to measure the success of a campaign. Pay attention to what others are saying about your product. If the feedback is overwhelmingly negative, take appropriate action before launching a new campaign with more influencers. However, if positive comments begin to trend, it’s possible that your influencer campaigns are to blame.
Engagement And Reach
Not everyone who sees your company or brand will go to your website or buy your product in an influencer campaign. However, this does not rule out the possibility that they were positively influenced by the campaign and will purchase from you in the future.
As a result, consider how much exposure each influencer has given your company/brand and how engaged they are with their posts about you.
Measure likes, shares, and backlinks in particular (i.e., how many times other sites reference your content). You could also look at the content’s comments for clues about its appeal or what people liked and didn’t like about it.
Influence Engagement Rate (IER)
The influencer engagement rate (IER) is calculated by dividing the number of engagements by the number of influencers’ followers when they posted your campaign. This can be used to find other influencers, such as those who give you high IER. Your message was more engaging for their specific audience if the IER was higher.
It would be best if you tracked the sales impact of your influencer marketing campaign. This is a good KPI to look at in terms of ROI, but it can also be used to track incremental revenue from new customers who were inspired by the content your influencers published.
As previously stated, try to use unique links for each influencer so that you can identify sales that they influenced. Because new customers generated by influencer campaigns may purchase multiple times from your company over time, you should include customer lifetime value in your calculations.
When done correctly, influencer marketing can help you raise brand awareness, expand your reach, generate sales, and engage new audiences. When working with influencers, it’s critical to have the right tools in place to track their impact and determine where more resources should be allocated in the future.
Keep in mind that influencer marketing isn’t a one-shot deal. It takes time and patience for results to appear. However, by tracking the metrics listed above, you can determine which influencers provide a positive Return On Investment(ROI) and improve your results over time.