A majority of businesses are increasingly spending significant amounts of money on influencer marketing. And rightly so; if your enterprise isn't profiting from the impressive reach and engagement levels of instagram influencers, then you need to rethink your marketing priorities.
Truth be told, without leveraging the immense power of social media to target the right audiences, you are as good as nonexistent to the buyers who really matter.
So, do you just splash some cash on an influencer with millions of followers and await a massive jump in revenues?
Not so fast!
What's The ROI On Your Influencer Campaign?
As a profit making venture, every business must track the ROI from every dollar spent on a marketing campaign. After all, no serious business succeeds by spending money on faith alone. While not every campaign is about the bottom line, specific outcomes agreed upon with your marketing team must be achieved in order to justify every cent spent on an influencer campaign.
In this regard, you should be able to track how much awareness, engagement, publicity and, of course, sales, that your brand is getting from an influencer.
How is this possible and can every business do all this on its own?
To a large extent, every business can use readily available tools to track the progress of an influencer campaign. While these tools may not be not totally definitive (advanced analytical skills are required for a more conclusive analysis), certain measurable KPIs can indicate if your campaign is on the right track.
Set Measurable Goals And Achievable Targets
Before you embark on an influencer campaign, you must decide what your overall objectives are. Only then can you measure, analyze and track your campaign. As mentioned before, there are a variety of reasons why businesses employ influencer marketing campaigns.
Such objectives include:
· Raising brand awareness
· Driving traffic to your instagram account and website
· Generating better leads
· Increasing your conversion rates
· Boosting your SEO
· Repairing brand reputation
Why You Should Track Your Influencer Campaign
As we shall see below, there are several tools that you can use to monitor the progress of your influencer campaign. These tools will allow you to:
· Check if an influencer has high engagement levels
· Analyze the reach of your influencer campaign
· Monitor the growth of your target audience
· Track the leads generated by an influencer
· Calculate how many conversions/sales are due to an influencer
· Decide which influencer to work with
· Know whether to ditch your current pick of influencers
5 Ways To Track The Performance Of Your Influencer Campaign
#1 Measure Campaign Reach Per Dollar
How far your marketing message has travelled is a top indicator of success. Reach can be measured by checking the number of followers an influencer has; the larger the number of followers, the greater the number of people who will view your posts.
Aside from the number of followers, you can also measure reach by:
Impressions: This is the number of times your message was actually displayed before your audience.
Traffic data: This is the amount of traffic that the influencer drives to your site and social media accounts
These metrics can be obtained directly from your Instagram business account (or many other social media analyzing tools) and entered into a spreadsheet. From there, you can calculate the reach per dollar by dividing the total reach by the total amount spent on the influencer.
#2 Analyze Audience Engagement
Your influencer campaign may create highly entertaining or informative content, but how can you be sure that your target audience actually likes it? Engagement is key for any campaign, and can be measured via:
Clicks: Number of clicks generated prove that audiences were interested enough to click on your post
Shares: Shows your content was of high enough quality to be shared with others
Likes: Your audiences appreciated your message enough to well, LIKE it!
Comments: If your message is great, users will comment positively about it
Mentions: These may be direct or indirect, and will indicate how much brand awareness your campaign is generating
These engagement KPIs are readily provided by Instagram analytics available in every business account, and can also be obtained using a number of social media analytical tools. By comparing these metrics against the amount spent, you can track your Cost Per Engagement, which is a great indicator of your ROI.
#3 Track Audience Growth Via Google Demographics Report
Creating great content with an influencer who is trusted and respected within your niche allows you to target the right audience. Before you select an influencer, use the Google Demographics Analytics Report to ensure that an influencer has the right type of audience. This report will give you a detailed look at the age, interests, gender, location, behaviors, technology use, etc. of your audience.
After your campaign launches, continue tracking the impressions made by your posts on your audience to ensure you are targeting the right individuals. This target audience KPI will allow you to create content that is specific to your audience and continuously alter the message to raise engagement levels, and ultimately, your conversion rate.
#4 Measure Leads Via Google Acquisitions Overview
As a business, you need to know how many engaged followers your influencer campaign is converting into paying customers. Unless your target audience is ready to make a purchase, no level of engagement or awareness will translate into increased revenues. Only then can you accurately quantify the ROI on your influencer campaign.
To measure this metric, open the Google Analytics tool, and under Acquisition, select Overview to see a list of all your traffic channels. Click on Social where all your social media accounts are listed in order of the acquisitions or potential leads generated. You can then use this information to adjust your influencer campaign accordingly.
#5 Monitor Sales Via Promo Codes, Affiliate Links, And UTM Parameters
Once your influencer campaign starts generating leads and conversions, you need to know exactly where the sales are coming from. Here are a few simple ways of tracking your sales:
Affiliate Links: An influencer's audience will click on an affiliate link which sends potential leads to landing pages on your site. Affiliate links can be used to measure the average size/value of purchases, an influencer's click through rate, as well as the total numbers of leads generated.
Promo Codes: Influencers provide potential buyers with a promo code which gives them a discount on every purchase. Tracking promo codes can pinpoint exactly which sales are from which particular influencer, ad, or post.
UTM Parameters: Google's Urchin Tracking Module (UTM) parameters can be added to your Google Analytics to track the success of your influencer campaign. UTM parameters are links inserted in your posts/ads to help you track which sites, ads, or shared posts your sales originated from.
Although most of the metrics mentioned above are correlated to the success of your influencer campaign, they are in no way as definitive as many businesses would like them to be. To determine whether your campaign has directly contributed to increased sales or conversions, it's advisable to obtain an expert analysis that utilizes more sophisticated tools.
If are thinking about working with influencers, or if you are unsure about the success of your current campaign, why don't you get in touch with us today? As experts in influencer marketing, we are best placed to analyze your current marketing priorities and recommend influencer marketing options that are guaranteed to deliver an impressive and measurable ROI.