Looking to put your influencer marketing strategy on the fast track?
If you too want to start measuring your influencer marketing ROI, you’ve come to just the right place.
In this blog, we will help you measure your influencer marketing ROI in a simple, streamlined manner.
But before, we get on to it, let’s get a quick background on the state of influencer marketing.
State of Influencer Marketing
Globally, the size of the Influencer marketing industry is going to touch $ 2.3 billion in 2020. The powerful impact of the Influencers can be established through the fact that close to 49% of consumers depend on Influencer recommendations when making purchases.
In a survey conducted on 800 brands and marketers in India, it was found that 75% of brands and marketers in India look at influencer marketing as an important or top priority.
63% of these brands and marketers in India are working with up to 50 influencers.
Many brands in India tap into this power of Influencers with the view to expand awareness or get more customers on board.
H&M, for instance, collaborated with various Influencers in India in the days running up to the festival of Diwali to market their festive collection. Many Indian Influencers including Ankita Chaturvedi of Corallista Blog and Juhi Godambe posted pictures wearing clothes from the festive collection and adding the hashtag #HMFestiveParty.
Partnering with Influencers comes with a whole range of perks and benefits. By collaborating with Influencers, you can reach out to your followers as well as to those of the Influencers. Apart from that, Influencers establish a relationship of trust with their audiences. When an Influencer markets your brand and/or product on social media, it helps attach a sense of trust with your brand.
But, 61% of brands and marketers in India lack the tools to measure their influencer marketing.
An influencer marketing platform can help you measure your influencer marketing efforts.
How to Measure Influencer Marketing ROI
Influencer marketing makes for a very lucrative technique to achieve your business goals. But, if you want to make the most of your Influencer marketing strategy, you need to take stock of the campaigns and know what results they are bringing for you.
Measuring the return on investment on your Influencer marketing campaign (s) is crucial for evaluating the efficiency of your strategy. Are the Influencers getting you closer to your social media/business goal (s)? What is working and what is not working for your Influencer marketing campaigns?
Tracking your Influencer marketing campaigns is as important as analyzing your overall social media performance. Just how you monitor your performance on social media platforms, you need to dig deeper into your Influencer marketing campaigns, as well.
So, we will now tell you how to measure the ROI on Influencer marketing. By following this step-by-step approach, not only will you be able to measure your ROI, but you can also find ways to enhance it.
1) Set Your Goal (s)
What objective (s) drives your Influencer marketing efforts? What do you want to achieve through Influencer marketing?
Set clear goals for your Influencer marketing campaigns. This will help give direction to your strategy. Moreover, it is important to have clarity on your goals in order to weigh out your results.
The goal (s) behind your Influencer marketing efforts may be classified as-
- Expanding awareness about your brand and/or products
- Generate engagement for your brand
- Boost conversions
- Build a loyal community of followers
So, the idea is to use your social media goal (s) to anchor your Influencer marketing strategy. Setting your goal is the first step towards measuring your ROI on Influencer marketing as it clearly lays out the pathway towards achieving your ultimate targets.
Here’s a quick tip: Create and set SMART ( Specific, measurable, attainable, realistic and time-bound) goals so as to make them easier to define. Here’s a sample for you-
“ Generate (x no. of ) new leads through an Influencer marketing program by hiring ( y no. of ) Influencers in (z no. of ) months”
Creating a goal statement helps you in paving out your marketing plan and in taking the desired actions for achieving the said goal (s).
2) Identify Metrics Corresponding to Your Goal
Now that you have clarity on your social media goals, you need to define the metrics relevant to your goals. The social media KPIs that you need to focus on, will be determined by your goal (s).
Here are the different goals and the KPIs corresponding to them-
Increasing Brand Awareness
When your goal is to generate brand awareness, for instance, you need to focus on your social media reach.
Your social media reach encompasses all the impressions, follower growth rate, subscribers and views. It is very important to track the post-wise data using a social media analytics tool.
Enhancing Brand Engagement
If your goal is to push for brand engagement, you need to look at your engagement metrics which include the average engagement rate, follower growth rate, and brand mentions.
The average engagement rate for your brand takes into account the total number of likes, comments, and shares for your content against the total number of followers. To calculate the average engagement rate, you need to add up all the likes, comments, and shares that you receive for your content. Divide the sum total of these engagement actions by your total number of followers. Then multiply it by 100 to get the percentage rate for your engagement level.
The follower growth rate is the rate of growth of followers for a given period of time. You can calculate your follower growth rate on a weekly, monthly or quarterly basis. To calculate your follower growth rate, you need to divide the number of followers for the given month/week/quarter by the number of followers in the time period preceding that.
When you look at your brand mentions, you need to dig deeper into the total number of brand mentions as well as the audience sentiment that these mentions have evoked as a result. With the help of a reliable social listening tool, you can track the mentions for your brand and get a sense of the audience sentiment.
If the purpose behind recruiting Influencers is to generate conversions for your brand, then the main metrics that you need to focus on, include click-through-rate, conversion rate, and bounce rate.
How many people are actually converting as a result of the Influencer marketing campaign? These metrics will help you get a sense of this.
Click-through rate is the total number of times that a particular link in your post was clicked on as a percentage of the total number of impressions on that post.
The conversion rate is the number of people who take the desired action on your social media post as a percentage of the total number of clicks. The action could range from subscribing to your newsletter to participating in a contest, or signing up for a webinar.
Bounce rate refers to the percentage of people who click on a particular link in your post but leave the landing page without taking any action. So, a lower bounce rate is supposed to be a positive sign.
If the objective behind your Influencer marketing campaign is to generate sales for your brand, you need to keep an eye on your revenue and CPA or the cost per acquisition.
The cost per acquisition is the price you pay for every sale generated. In the context of Influencer marketing, cost per acquisition can also be termed as pay per lead. It is the cost that is incurred to the Influencer for every lead that they generate through the campaign.
Your revenue, that is, the amount generated as a result of the Influencer marketing campaign is also an important metric to focus on.
1) How to Generate Sales With Your Influencer Marketing Campaigns
2) Best Influencer Marketing Platforms (as of 2020)
3) What is Influencer Marketing? A Simple (But Complete) Guide
4) How to Find Influencers Who Are the Right Fit for Your Brand
3) Define Targets That Influencers Need to Achieve
In order to build a high-ROI Influencer marketing campaign, you need to make sure to set out clear goals for your Influencer partners as well.
Once you have gained clarity on what your social media goals are, you can follow the exercise for defining the KPIs you need to focus on.
Forge a fruitful partnership with Influencers by laying out clear targets that they need to achieve. With your goals and KPIs in place, you can carve out the targets that Influencers need to achieve as a part of the campaign.
Send out detailed campaign briefs to your Influencer partners to ensure maximum efficiency. Allocate well-defined and detailed targets for the Influencers based on your goals and KPIs.
If your social media goal is to generate brand engagement, then you need to set clear targets for them to achieve. Define the campaign goals and objectives, campaign message, time frame, and deliverables in order to ensure maximum effectiveness.
Further, to inculcate due diligence in your Influencer marketing campaigns, you need to keep an eye on how your Influencer marketing campaigns are going. You can use this Influencer marketing tool to keep a watch on the progress of Influencer marketing campaigns.
4) Get an Influencer Marketing Platform
To measure the ROI on your Influencer marketing campaigns, you need to monitor the performance of your campaigns. Without access to relevant data about your campaigns, you cannot truly discern how well your campaigns are doing.
This is why you need an influencer marketing platform for your brand.
Unbox Social offers the best Influencer marketing solutions. Here, not only can you discover Influencers but also run and manage Influencer campaigns. This Influencer marketing platform allows you to pull out Influencer reports with detailed insights and intelligence about your campaigns.
5) Find Influencers Across the Pyramid and Platforms
Our influencer marketing platform allows you to discover influencers from across different social media platforms.
Are you looking for influencers in a particular category or niche? The influencer marketing platform by Unbox Social allows you to explore influencers from various categories including fashion, luxury, lifestyle, sports, food, and so on.
Whether you’re looking for macro-influencers, micro-influencers or nano-influencers, this influencer marketing platform has got you covered.
6) Use Brand Check Feature
You can also discover influencers who have worked with brands similar to yours, with the help of the brand check feature. Find out which influencers have worked with a specific brand in the past.
Add the relevant brand name in the brand check tab and the tool will provide you with a list of all the influencers who have worked with that brand.
7) View Campaign Summary to Capture Potential ROI
What’s best about this influencer marketing platform is the Summary feature.
You can select different influencers on your list and get a summary of their performance, something like a pre-campaign report.
This summary allows you to get a sense of the potential performance of each of the influencers. The tool provides you with important insights including:
- Influencer Pyramid – Find out how many and what percentage of influencers that you have selected are macro-influencers. Likewise, find out for micro-influencers, nano-influencers, Category A and Category B influencers.
- Category Split- What categories do the selected influencers belong to? Find out the percentage and number of influencers who belong to the different categories.
- Influencer Demographics- Gather the demographics of the influencers you have selected. Know the geographical, age and gender composition of the influencers you have selected.
- Contribution to Reach and Contribution to Interactions- Know the contribution to reach and interactions for each of the influencers that you have selected.
- Total Reach and Average Engagement- Gather the total potential reach and average engagement rate for the selected influencers using this influencer marketing platform.
As such, with the help of this influencer marketing platform, you can get a picture of how your campaigns are going to pan out, based on influencers’ performance. Through this pre-campaign summary of influencers, you can get a sense of how your campaigns are likely to perform.
8) Track Influencer Marketing Campaigns
Once you have got your influencer marketing campaigns up and running, you can start to measure your campaigns.
You can pull out campaign reports to track the performance of your influencer marketing campaigns.
The campaign reports provide you with in-depth insights about every campaign and help you make sense of how every campaign is faring. The reports cover relevant metrics and KPIs that help you make sense of campaign performance.
This is vital data you will need for assessing your influencer marketing ROI.
Once you’ve captured this data, you can move on to the next step, that is measuring the monetary cost of influencer marketing.
9) Measure the Cost of Influencer Marketing
Influencer marketing campaigns incur monetary costs as well.
First and foremost, Influencer marketing will involve the Influencer fee. Influencers charge a fee for creating and posting sponsored content for your brand. At times, Influencers may provide their services in exchange for your product (s) or services, as well. Calculate the amount incurred on hiring the Influencers and availing their services.
Secondly, you need to calculate the cost of producing the content. This includes the man-hours spent in creating as well as enhancing the content featuring your Influencer partners. You also need to include the cost incurred on any tools that you employ for creating and enhancing Influencer marketing content.
Thirdly, you need to take into account the amount that you shell out for sending out product samples to Influencers. If you are running any giveaways and contests, you will need to include the cost of giving out gifts, vouchers, and discounts.
A good social media campaign calls for employing all the optimum social media intelligence tools. If you are using any third-party social media tools, you need to include the cost incurred on these, as well.
Calculate the sum total of all the costs incurred on running your Influencer marketing campaign and then you can move on to the next step.
10) Calculate Influencer Marketing ROI
Now that you have all the data on Influencer marketing as well as the sum of the costs incurred on the campaigns, you can calculate your return on investment.
Return on investment = Profit / Cost of investment X 100
In this context, profit will depend on the objective behind running the Influencer campaign. The profits earned here are based on the value that these campaigns generate. If you wanted to generate brand engagement through the campaign, you need to focus on the engagement metrics. Here, the profit may be calculated by adding up all the engagement actions and positive brand mentions for all the Influencer marketing content.
Profit= Likes, comments, shares + Positive brand mentions
The cost of investment can be expressed in this manner-
Cost of investment= Influencer Fee + Content Production Costs + Product Samples & Gift Vouchers + Third-party tool (s) costs
The purpose of calculating the ROI on your Influencer marketing campaigns is to optimize your efforts, eliminate low performing campaigns and learn from your past mistakes.
Based on the figure that you arrive at on calculating your ROI, you can take a call as to what actions need to be taken to further enhance your Influencer marketing campaigns.
Summing It Up
Influencer marketing has taken over the social media industry and has become an integral part of marketing a brand. With niche content creators playing a major role in impacting the audience’s lifestyle and purchase decisions, it is crucial for brands to leverage this influence that they bring on board.
In order to make the most of Influencer marketing campaigns, you need to constantly track the ROI on your efforts. Here’s a quick snapshot of the process using which you can run a fruitful Influencer marketing campaign-
- Set clear, measurable and attainable social media goals for your brand
- Figure out the metrics you need to focus on
- Define campaign briefs for Influencers, based on campaign goals and metrics corresponding to them
- Get an influencer marketing platform to assess campaigns effectively.
- Calculate the cost of Influencer marketing investment
- Measure the ROI on your Influencer marketing efforts and accordingly take the desired action to optimize
An influencer marketing platform is the backbone of a fruitful influencer marketing strategy. You can assess campaign potential with the help of influencer campaign summary, and track every campaign with the help of campaign reports.
There are many more perks to using our influencer marketing platform, of which our client testimonials speak to a great length. We are constantly updating our tool to enhance your experience.
Sign Up for a demo or send us a mail at firstname.lastname@example.org to give Unbox Social a spin.