7 Influencer KPIs to Monitor

7 Influencer KPIs to Monitor

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Influencer marketing is popular among B2C brands. That’s not surprising. Social media collaborations with popular bloggers often outperform regular posts and ads.

Marketers say measuring the impact of influencer marketing is the biggest challenge. Brands have recently used this channel. There is no standard set of metrics. That is, most experts can’t evaluate the results. Many of them ignore how influencer marketing affects their business.

We’ll try to overcome these obstacles in this article by identifying failures and revealing best practices.

  • Why is influencer marketing necessary for businesses?
  • Why does it work?
  • How do you evaluate the effectiveness of influencer marketing?

Why is influencer marketing necessary for businesses?

The best part of this marketing channel is that it works for all campaigns. By collaborating with industry leaders, startups can gain social media exposure, niche businesses can gain credibility, and established brands can refresh their content strategies.

Micro and macro influencers can become your company’s spokesperson. They talk about your products or services with their audiences. By collaborating with the right bloggers, you can build a strong community around your brand.

You can also use influencers to promote new products, holiday sales, or brand awareness. These activities are more likely to wrap it than paid Facebook post boosts and Instagram Stories.

Why does it work?

Ordinarily, popular bloggers know their subscribers by heart. They know when to post, use the appropriate tone of voice, and create highly authentic content. But they are humans, not companies, alive, flawed, and unique.

Followers on social media They look for soulmates, advisors, and even trusted friends among bloggers. No brand can achieve this level of audience trust.

Thus, influencer marketing relies on bloggers’ high credibility. It’s worth more than traffic, average view time, or domain rating. So even micro-influencers who like your brand can generate leads.

Considering how many customers use social media to research purchases, there’s no reason to avoid influencer marketing.

How do you evaluate the effectiveness of influencer marketing?

Influencer marketing is a social media campaign. So you can measure the impact of a collaboration using social media metrics. Also, influencer campaigns have their own set of metrics.

Let’s dissect it.

  • Return on Investment

Because of its versatility, this metric is used widely in marketing.

Use this formula to calculate your influencer marketing

ROI = (Profit return/Total amount spent)*100

  • Conversions

This method is much simpler than the previous one. This method only requires tracking conversions from an influencer’s page or a specific post.

A conversion is a change in meaning. In general, it refers to the number of people who took a specific action, like visiting your website.

Many beauty brands use YouTubers to promote their products. Influencers usually include a trackable link or special promo code in their video descriptions.

For example, this description contains several links with UTM parameters that allow companies to track website traffic. This campaign’s acquisition of visitors converts.

  • Cost per Click

You can analyze conversion rates and calculate CPC. The CPC is determined by the number of times a follower clicks on an ad post and the ad price.

CPC for an influencer campaign can be calculated as follows:

CPC = Advertising cost/number of clicks

  • Click-through Rate (CTR)

CTR provides more information about how followers interacted with a post, video, or text shared by an influencer. The ratio of people who click on the post’s link to those who view it in their feed.

Here’s how to calculate your CTR:

CTR = (Total number of clicks/Total number of views)*100

Marketing experts consider a 2% CTR a good result.

  • List growth

It’s a key metric for email marketers. But it also works in influencer marketing. List growth shows how quickly your list grows.

Here’s a formula:

(New followers – Unsubscribed users)/Total followers = List growth

This metric is useful when running an influencer campaign to grow your following.

You can also compare List growth rate to Referral traffic. That will explain why some channels perform better. Then adjust your influencer marketing strategy.

  • Channel authority

It’s difficult to assign social credibility to a number or formula. The number of followers, activity, engagement, and content visibility all contribute to channel authority.

Followers are a result of good content, not the cause. The number of retweets or shares can indicate how popular someone’s ideas are. Tweets, Reels, and Facebook posts are acceptable expert opinions.

Influencer marketing tools and social media account databases define each profile’s Influencer score. Although this is a rough estimate, it can be used as a guide.

  • Engagement

Engagement is measured by likes and comments on your post.

Similar to how Instagram users tend to like posts with beautiful visuals, comments show whether or not a topic is important to followers. So measuring engagement is tricky.

Influencers with thousands of followers can earn hundreds of unintentional likes. Many comments show a blogger’s influence. Engaged fans are ready to debate, ask questions, and enter giveaways or contests promoted by influencers. Their time is valuable in a world of information overload.

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