What is influencer marketing and how does it work?
Influencer marketing is a form of marketing that enables businesses to collaborate with individuals who have a following for increased brand exposure. Companies may ask a person with a large following to publish social media content that promotes their products or services. People often follow individuals they trust on social media, so if they see someone they follow advertising your business, there’s an inherent trust factor you can lean on to boost your conversion rate.
An integral part of any influencer strategy is figuring out which influencers might suit your company. For example, if you sell facial moisturizers, you may want to work with an influencer with a strong track record of success promoting skincare products. In this scenario, it’s best to partner with individuals that meet this criteria because those who follow that specific influencer are interested in what they have to say.
Once you find an influencer you like, reach out and see if you can strike a deal. For this transaction, you may allow them to receive a commission on all the products and services they sell. As an example, you might give them 10% of the revenue generated from the products and services they sell on your behalf. You’ll need to review the numbers to see if this agreement is viable, and you might even want to partner with multiple influencers as a part of your influencer strategy.
Is influencer marketing effective?
So, is influencer marketing effective? While your campaign’s outcome comes down to your strategy, there are a few significant benefits to using this type of marketing. For instance, businesses earn an average of $5.78 for every dollar they spend on influencer marketing (via Influencer Marketing Hub).
Here are a few other advantages to consider:
- Establish credibility and trust. One of the reasons many businesses have a hard time selling their products and services is that they can’t establish credibility. Your business must appear credible if you want people to buy from you. By partnering with an influencer that followers trust, you can quickly boost your credibility.
- Cost-effective. Another major benefit of using influencer marketing is that it’s cost-effective. If you decide to use this tactic, you may generate a significant return on your investment as long as you partner with the right people.
- Attract quality leads. By using influencer campaigns, you can reach people who are likely interested in the products and services you offer. As a result, you may have an easier time increasing your conversion rate.
- Boost brand awareness. When you partner with influencers, you immediately get your products and services in front of hundreds of thousands of people. There are even some influencers who have millions of followers. Therefore, there are plenty of ways to use influencer marketing to boost brand awareness.
These are just a few reasons you should consider partnering with influencers. Make sure you work with the right influencer to get the most out of this relationship.
Limitations of influencer marketing
While influencer campaigns can provide many benefits, there are also a few limitations to consider. For example, collaborating with an influencer who isn’t a right fit for your brand, is dishonest, or finds themselves in hot water, can set your marketing efforts back. This can also hurt your brand since the influencers you work with are a reflection of your business. Additionally, partnering with an influencer in the wrong industry can make selling your products or services difficult.
That’s why you always need to vet your influencers carefully. You should take a look at their background and make sure that the lifestyle they lead is compatible with your company. Otherwise, influencers promoting your products and services could reflect poorly on your company. It’s a good idea to have professionals in your business who can communicate with influencers you want to partner with to learn more about them.
Is influencer marketing right for your business?
Companies in the B2B and B2C spheres can benefit from influencer marketing. As long as you execute this marketing tactic effectively, you can grow your audience.
However, note that this type of marketing isn’t common for B2B companies to implement. Therefore, if you’re in the B2B industry, you need to think carefully about how to partner with an influencer who can adequately expand your brand awareness and target the right market.
On the other hand, if you’re in the B2C industry, it can be a powerful marketing tactic that can increase your revenue.
How to create an influencer marketing strategy
If you want to get the most out of your influencer strategy, some of the most important steps you need to keep in mind include:
- Identify your goals. What goals do you need to meet? What can you do to track your key performance indicators? How will you judge the success of your influencer marketing campaign? You need to have a solid set of goals for the best outcome.
- Determine your audience. Next, you need to take a look at your audience. Who is the ideal customer? What problems do they have? What types of social media platforms do they use? By answering these questions, you can reach your target market effectively.
- Create a budget. Creating a budget allows you to determine how much you can afford to invest in influencer marketing. This may be useful if you’re paying influencers directly for their work.
- Find the best influencers. It’s best to take some time to find the right influencers. Who do you want to partner with? Who are their followers? Do you want to partner with a social media star? Or, do you want to partner with someone with a large following in a particular industry?
- Track metrics and optimize your strategy accordingly. Finally, you need to track your metrics. How successful is your influencer campaign? Do you need to make adjustments to improve it?
Tips for working with social media influencers
If you want to partner with social media influencers to grow your audience, there are several tips you can follow. They include:
- Partner with influencers that align with your brand’s message. You don’t want to work with someone who can reflect poorly on your business.
- Don’t focus on the number of followers they have. You don’t necessarily need to focus on the number of followers an influencer has. Instead, it’s a good idea to pay attention to the relationship they have with their followers. This is because a campaign may not do well if an influencer has a million followers but a low engagement rate.
- Create an agreement. Creating a formal agreement in writing helps avoid confusion and ensures each party knows their responsibilities.
- Provide value. While you can pay influencers, you also want to provide them with more value than just money. For example, can you help them boost their exposure? Will this partnership be mutually beneficial?
- Research influencers before making contact. Looking for the right influencer is almost like searching for the right employee for your business. Take the time to review what they post and assess partnerships they’ve had in the past to ensure they’re a good fit.
If you find a suitable influencer to promote your products and services, you can increase your foothold in your industry.
