5 Way Brands Can Measure Influencer Marketing ROI
Perhaps one of the biggest concerns for brands is their return on investment (ROI), a metric that massively reflects on the overall growth and success of a business.
And thankfully, influencer marketing campaigns can work wonderfully to achieve fantastic results for this important goal.
However, many brands are unaware of the ways they can track their successes with influencer marketing to gain a deeper understanding of how effective these campaigns are.
And so, with that in mind, here are five ways brands can easily and efficiently monitor their influencer marketing ROI.
Before we begin, it’s always worth mentioning that you should set up campaign goals in analytics software, such as Google Analytics, to ensure the most accurate tracking.
Not only can it help you track the results of your current campaign, but it can also give you more insight into what you can do for your next campaign, such as the type of influencer to work with, and which platforms to utilise.
ROI isn’t just about generating profit, as brand awareness is a highly valued and important metric for businesses, and can be just as, if not, more important. This is especially apparent for those who are dedicated to becoming the go-to brand and raising their profile within their industry.
And as such, an increase in brand awareness can be used as a perfect reflection of how successful your campaigns have been, as an increase in brand awareness, traffic and enquiries proves that your influencer partnership has done its job - and a very successful one at that.
Many brands struggle to see how the sheer power of brand awareness relates to sales, however, with it taking an average of seven interactions with a consumer before they make a purchasing decision, building brand awareness and efforts are crucial to increasing sales.
Raising brand awareness can be done in a plethora of ways, including on social media, search engine results pages, and can improve general online presence, which ultimately, makes it easier for consumers to see your brands, products and campaigns.
Increase in social media followings
As one of the most poignant digital advertising platforms, social media growth can represent success for businesses in various ways.
For example, not only can it represent your increase in brand awareness, with more consumers finding your name and choosing to follow your social channels to hear more from you, but with the increase of third-party marketplaces such as Facebook Marketplace and Instagram Shopping, an increased social following can also equate to an increase in sales.
As well as followings, social engagement such as likes, shares, clicks and reactions are also important metrics to monitor when running an influencer marketing campaign, as they can demonstrate the increase in interactions your brand is receiving as a result of the marketing activity.
Profits and sales
Of course, a tell-tale sign of ROI is an increase in your profits and sales.
When you invest in your influencer marketing campaigns, like 63% of businesses are predicted to do over the next 12 months, a subsequent increase in your sales can be seen as a direct result.
Be sure to set up some form of tracking for the duration of your campaign to give you a clearer idea of just how many extra sales you were able to make, both during the campaign and afterwards.
Repeat and return customers
While one of the main aims for businesses is to increase overall traffic, conversions, and profits, it can also be extremely valuable to build a loyal base of repeat users and return customers, often known as brand advocates.
With a particular loyalty to your brand, returning customers can produce a steady stream of revenue as they’ll be more likely to come back to your website, or visit your store if you have one, to make repeat purchases.
And it’s the power of influencers that can help to instil this feeling of trust that creates long lasting trust and relationships between consumers and brands.
Increasing your SEO rankings is vital if you’re looking to grow your business online – and influencer marketing campaigns can bring you results in this area, making SEO another tangible metric you can track to see how well your influencer campaigns are working.
With more people visiting your website off the back of the campaign, you’ll notice things such as your keyword ranking and page rating on search engine result pages (SERPs) increasing.
Additionally, as your influencer partner gains success, your brand will see successes too, since your names are associated via your campaign and partnership.
Remember, ROI doesn’t always necessarily mean an increase in monetary value – it can also mean the return you receive regarding your awareness, rankings, and relationships.
You should also be mindful that influencer marketing campaigns can often run in the background, generating ROI over a period of time, instead of generating instant results. But your patience will soon pay off when you see the numbers increasing over time!
And there we have it – five ways to measure influencer marketing ROI. Profit is of course pivotal, however it isn’t the be all and end all, as many other aspects are just as important and beneficial.
To find out more about how you can utilise influencer marketing as part of your business strategy, get in touch with a member of the Influencer Matchmaker team today to discuss the perfect influencer for your campaign!