INFLUENCER MARKETING CONVERSION RATE EXPLAINED
In 2017 we saw a huge increase in companies looking to use Influencers in their marketing strategy. 2018 has already surpassed 2017 in the amount of influencer Marketing campaigns being run… and we are only half way through the year!
However, according to Linqia, almost 80% of marketers say that not being able to accurately calculate the Influencer Marketing conversion rate is the biggest barrier for them. We are here to demystify this issue for you, and to allow you to decide if the investment is worth it.
PLANNING AN INFLUENCER MARKETING CAMPAIGN
To be successful in calculating the Influencer Marketing conversion rate, you must create an in-depth plan of the campaign. Without a clearly defined strategy, the campaign will never perform as you would like it to.
This bit sounds simple but it’s where you should spend time outlining exactly what you would like the campaign to do. Do you want to drive traffic to your website, boost views of a video or get people liking your social media profiles? Without defining you goals and objectives, you will not be able to clearly define the Influencer Marketing conversion rate.
Once you have decided what you want the campaign to do, you need to look at how much you want to spend. By setting a budget, you can start looking at what influencer you can afford. With larger budgets come influencers with bigger audiences. However, sometimes, an Influencer with a huge social following may not be the best approach for you. If you’re targeting a niche market it maybe best to look at influencers with specific audience demographics.
An important step in any campaign is looking at the audiences you want to target. Each influencer has a different follower demographic. By deciding on the types of people you want to target, we can narrow down the influencers that will bring value to your brand.
PICKING YOUR INFLUENCERS
After you have decided on your objectives, allocated budget and defined your audience, we can start looking at relevant influencers. We can choose from over 1 million different influencers. They range from small micro influencers with 3,000 followers, to lager influencers with over 1 million followers. We need to filter these influencers with the criteria you have set out for yourself. This will give a list of relevant influencers that have audiences that are likely to interact with the content that is being promoted.
DEFINE YOUR KPIS (KEY PERFORMANCE INDICATORS):
Once you have a list of influencers, you can start planning your KPI’s. You can look at their audience insights and their average engagement rate. If an influencer has 5,000 followers with an engagement rate of 5% and charges £200, you would be looking at 250 engagements at a cost of £0.8 per engagement. From these stats you can estimate how many website click-throughs, video views or social likes you could potentially generate.
TRACKING THE INFLUENCER MARKETING CONVERSION RATE:
At Crunch, we love being able to track our campaigns, and so should you. There are many ways to track your Influencer Marketing campaign from supplying the influencers with tracking pixels or using promo codes. By doing this we can use the data to accurately calculate your Influencer Marketing conversion rate.
CALCULATING THE INFLUENCER MARKETING CONVERSION RATE
When we run each campaign, we track each individual influencer as well as an overall campaign summary. This tells us which influencer had the biggest impact and the best conversion rate. This will breakdown if a certain influencer was worth the investment and if they should be used again.
We automate the process of calculating the conversion rate and ROI. However, if you would like to check the math yourself, we use this basic formula:
Totals sales from campaign – cost of influencer = x
(x/cost of influencer) x 100 = ROI%
So, for example, you spend £100 on an influencer and then gave them the promo code INF1. We can then look on your analytics to see how many sales that promocode generated. In this case the promo code generated £2,500 worth of sales, the calculation would look like this:
2500 – 100 = 2400
(2400/100) x 100 = 2400%
Your return on investment for this influencer is 2,400%.
Influencer Marketing can be a very powerful tool. It gives business the ability to tap in to highly engaged audiences. It is also a great way to get around ad-blockers and seed your message to your target audience.
We are currently offering free Influencer Marketing consultations and proposals. All you need to do is click on the button below.