What is ROI?
Return on Investment calculates the amount of money invested and the amount of profit or loss earned. ROI (Return on Investment) is commonly represented as a percentage when analysing an organization’s profit or the earnings of various assets. In layman’s terms, Return on Investment measures what you get back in comparison to what you put in.
Return on Investment may be calculated in a variety of ways to determine a company’s profitability. A firm can use it to predict inventory investments, pricing policies, capital equipment investments, and so on.
Brands now compete fiercely to attract target audiences and turn them into loyal consumers. They are doing so by partnering with influencers to attract new consumers and enhance their company’s ROI.
Brands are more interested in collaborating with influencers rather than celebrities. They have recognised that influencers are genuine and can bridge the gap between their target audience and the brand. As a result, this piece will discuss practical techniques that influencers may utilise to double your brand’s ROI. You will learn how to leverage influencers to improve your revenue towards the conclusion of this piece.
Influencer marketing is rapidly gaining traction as a method for increasing brand recognition and audience engagement. According to a Linqia survey, 86 per cent of marketers employed influencer marketing in 2017. This is understandable given that influencers have a large and active fan following. They also have a cordial relationship with their fan base. Brands may use this to their advantage in a variety of ways.
Why Should You Use Influencer Marketing?
Influencer marketing is not the same as typical celebrity brand endorsements. This is mostly due to the stark difference between influencers and high-profile celebrities. Influencers, as opposed to cagey and inaccessible superstars, connect with their fans in a customised manner. They reward their supporters by providing an intimate look into their life.
Puma, for example, worked with Hollywood celebrity Rihanna to advertise their AW17 Collection footwear in Paris. The video has received over 161K views and 2.4K likes.
Shannon, on the other hand, is a beauty influencer who made a video unpacking and testing on her new Sephora makeup haul. The video has garnered over 258K views and 12K likes.
As you can see, the celebrity endorsement appears to be more promotional and sales-oriented. The beauty influencer’s video, on the other hand, is more real and less commercial. As a result, it drew more attention than a celebrity endorsement. As a result, their followers see these influencers as authoritative people in their field. They are more inclined to be swayed by suggestions from their favourite influencers. In fact, 70% of millennials say bloggers impact them more than celebrities.
When you develop content in collaboration with an influencer, you have access to their fan base. Aside from increased involvement, your material gets credibility and a wider audience. As a result, influencer marketing initiatives may help you break through the clutter and leave a lasting impression on your target audience. Influencer marketing may also create leads, increase conversions, and provide a high ROI. This is primarily due to influencers’ capacity to shape their audience’s perceptions of your product or service. Your target audience will believe an honest testimonial from an influencer above an advertisement that sings your product’s or service’s praises.
Establish a Goal –
The influencer you work with and the material you generate will be determined by the ultimate result you want to accomplish. As a result, it is critical to be clear about your campaign expectations.
Do you want to start a discussion about your brand? Or do you want to increase sales while generating a good ROI? The answers to these questions will form the basis of your influencer marketing plan.
This is one of the greatest instances of influencer marketing for starting conversations and driving purchases. Bigelow Tea is an American tea company, and the campaign’s objective was to reach out to the millennial market and improve sales. As a result, they partnered with lifestyle influencers and bloggers to market the benefits of Bigelow tea bags.
Ashley of Cherished Bliss was one of the lifestyle bloggers. She devised her own formula for Bigelow Iced Tea. The article achieved the number one position in Google search results for “ice lemonade drink.” The blog article garnered 44 million impressions and improved the brand’s sales by 18.5%.
With Social Lions, we can help you get the same level of reach and increase your brand’s sales by effortlessly reaching out to your target audience. Get in contact with us right now to commence your branding and marketing adventure.