Measure Influencer Marketing ROI Effectively [a Step-by-step Guide]
“How to measure influencer marketing ROI?” is the first question almost every eCommerce business owner asks when it comes to invest in the same.
For some of the industries, influencer marketing works like a miracle. For example fashion, education, food, and travel. An influencer can bring an emotional appeal or logic to persuade the viewer, reader or follower. As they create an impact on their psyche, that help them drive traffic. And you may be convinced that influencer marketing is important for your business.
But most marketers find it difficult to execute because of below reasons,
- Cost-benefit analysis or being sure about returns
- Ways to measure and calculate influencer marketing ROIs
- How to set fees and commission structure with influencers like big platforms
- Convincing influencers to promote their brand being an SME
- Finding and connecting right influencer for their industry domain
If I summarize, it majorly boils down to ROI. It needs some knowledge to understand how to incorporate it into your marketing ROI. Read the complete article to get tips on it.
Overview and some stats
In eCommerce, sellers use digital marketing techniques such as SEO, social media, email marketing, etc. to get more traffic and improve conversions. But, the success relies on how much returns you’ve received on the number of investments in terms of time, efforts, and even money.
Recently, in research by Influencer’s Intelligence, only 18% of marketers are able to include influencer marketing within their ROI calculations.
So, if you are also a marketer finding it exciting and challenging to include influencer marketing ROI within your overall ROI, here are the steps to do it:
1. Keep your mission clear
Before jumping on influencer marketing campaigns, you need to understand why you want to use them.
Your marketing mission will define what are the outcomes or Key performance indicators for your marketing campaigns. The same concept applies to influencer marketing as it is one of the channels you are using to build a brand, increase awareness or conversion. Some of the examples of influencer marketing mission are as below,
- Improving your brand reputation
- Increasing your reach of brand recalling campaigns
- Boosting your social media engagement
- Increasing website traffic
- Improving the conversion ratio
- Strengthening revenue
You can choose from the above-mentioned results as an expected outcome of your influencer marketing campaigns. It gives you clarity what to measure at the end in ROI Matrix.
2. Prepare your KPIs
Once, you know what would you get at the end of the influencer marketing campaigns, here is to make a plan on how would you measure your goals.
For example, if you are looking for more conversions, you would need to prepare your Google Analytics and set goals to track them.
So, what are the KPIs that help you measure your results?
Some of the examples can be,
- % increase in website traffic from various channels
- % increase in social media engagement
- % increase on targeted landing page/products page
- % increase in leads or conversions
- % increase in average order value
- % growth in organic search of branded terms
If you want to see an example, we wrote a guide to influencer marketing for fashion eCommerce brands where we have explicitly shared the KPIs for those online fashion influencers. You can create KPIs according to your industry, product and target audience.
Just like any other digital marketing KPIs, these KPIs help you understand how much you’ve earned out of your investments on influencer marketing.
3. Track it effectively
Now, the next step is to sit and discuss with your influencer/s about how you are going to get the real insights on influencer marketing.
The purpose of doing this is because many influencers would share your product review or promotion on either their website, social media accounts, or YouTube channel.
How are you going to track it?
If the influencer is going to promote your eCommerce products on their website, you can ask them to put UTM codes on your landing page URL. This helps you measure how many clicks you’ve received after the promotion is LIVE.
The influencers can also help you with the data on how many people have read their promotional blog or viewed their video, no. of social media shares, what has been the bounce rate, etc. They can present the same using Google Analytics or any other Analytics tool the influencer is using.
Here is an example of what your influencer can show:
Image Source: Author
This will help you understand and match the results appropriately within your total traffic. As a result, you can prove the ROI of individual influencers. Well, bifurcation of traffic has been the biggest challenge for most of the marketers.
That’s the reason why this needs to be mutually agreed upon between both the parties. That can directly help you track the results of influencer marketing.
4. Compare your results
Get all your KPIs ready, it’s the time to measure the results and compare them. You have analytics of yours and the influencer’s to measure what outcomes you’ve received.
Get answers to all the below questions to compare the results of your influencer marketing campaign:
- What do you see as a difference in your analytics after you spent on influencers?
- Do you see an improved CTR of branded terms in the Google Search Console? If yes, how much?
- Did you see a noticeable amount of visits received on your landing page?
- How many % of a difference do you see in goal completion ratio?
- What is the % of a difference you see in overall website traffic including all the channels?
- Did you see improved conversions?
All of these would help you measure what you’ve received after investing in influencer marketing campaigns. Sometimes, business owners run multiple campaigns using varied products. One with digital marketing/offline marketing and the other one with the influencer. So that they can bifurcate impact easily.
5. Measuring the ROI
After the comparison of the present and past results, you know what you’ve received on your investment. And, how much traffic or revenue you’ve generated after cutting the expenses that took place of your influencer marketing, is your ROI.
Use Influencer Marketing Confidently
Make sure you follow the above process of measuring influencer marketing ROI and including it in your overall digital marketing ROI. If you seek guidance or find other challenges then do write to us on email@example.com and we would be more than happy to help you..!