Evaluate the value of Influencer Marketing on Sales and Brand engagement.
by Koussey •
Present trends have revealed Influencer marketing on the front line of marketing methods. As of 2019, the influencer marketing industry was worth about $8 billion. Now, several companies and businesses are opening up to the idea of influencer marketing. Industry leaders have even speculated a $15 billion worth by 2022.
However, even with the solid proof that influencer marketing can improve brand engagement, there has been a clause in sales. And it just makes sense. When evaluating the question of where influencers sit in the marketing funnel, most would suggest the awareness phase. Influencers have become synonymous with debuting new products and services to the market and campaigns are normally measured with ‘softer’ KPIs such as reach and engagement.
Still, the question- "How do I calculate and track the number of sales that my investment in influencer marketing amounts to?" is a popular question among people who are either new to influencer marketing or, have adopted influencer marketing for a while but still don't have verifiable methods of evaluating the value of influencer marketing on sales.
Here are a few ways to measuring the impact of influencer marketing.
Track Traffic data
The first method here is to monitor traffic data. It is a very reliable indicator. It measures the volume of traffic that visited your website from the link in the influencer’s profile or account. Although this does not give you an actual figure for sales, it gives insight into the number of potential buyers and sales leads. These are people who already made a purchase decision in favour of your business owing to what was seen in the Ad.
Another sure way to track the impact of your investment is through the analysis of clicks and the number of saved posts (Instagram posts only). To achieve this, get the post insights data from your influencer. (For Instagram influencers) For other influencer marketing platforms like Facebook and blogs, employ the use of specialised marketing tools like BuzzSumo for a detailed breakdown of KPI data.
The use of Codes and UTM parameters
The use of promo codes or coupon codes is one of the most effective and longstanding methods of tracking sales through influencer marketers. Affiliate links and UTM parameters are the other available options. Whilst being effective, it is also simple. To adopt this method, through Google Analytics Campaign URL Builder, add UTM parameters to URLs. These methods go beyond tracking sales. You can track repeated purchases and the average value of each purchase.
In conclusion, you should understand that asides from the need to evaluate your returns on investment in influencer marketing, there is also the 'influencer fraud' factor. The industry is plagued by the activities of certain bot-operated 'influencer' accounts. And some of these fake accounts look so real and engaged, this poses the challenge of telling real and fake accounts apart. Some of these fraud accounts have millions of followers, likes, and comments alike. So, while it may seem like there is a lot of engagement on each post, the account is only being controlled at the back end by bots. Hence, investments in these fraudulent accounts will not translate to increased sales.
Written by Koussey
Koussey is a cofounder of Capssion