Despite being an influencer is the dream of almost everyone on Instagram, influencer marketing is facing challenges. Trust in influencer posts on social media is declining sharply, with only 4% of people believing what they say.
But we don’t discourage you to use influencer marketing in your marketing mix. It makes perfect sense for consumer brands because of its precise targeting and lifestyle fit.
We only remind you to track the performance of influencer ROI closely in order to have your budget under control and generating the results you want.
So let’s go over the basics of influencer marketing from your point of view and how you can stay on top of it.
Promo codes are SpringSale, Alicia30OFF, SurferBoy15 and so on. You probably give them to influencers as a unique code for their followers to use at checkout.
Promo codes can be shared across channels and mediums – in Instagram captions, as overlays on pictures/ videos/ stories, offline on printouts or simply as word-of-mouth. They are like a password customers have to use at a certain point when shopping and are not associated with a particular channel.
The most important thing about promo codes is that they show conversions – when you look at a promo code performance in your analytics, it shows how many conversions you got with this code. But you can’t see what traffic you got associated with it.
Referral links, on the other hand, are the dedicated URLs with added parameters at the end your influencers share.
Here’s more info on how to add UTM parameters to your URLs. If you don’t want to generate UTM tags by hand, Metrilo’s Campaign Manager in the Marketing Performance tab can do that for any influencer you create.
Referral links are used in sponsored content and video descriptions to drive traffic through.
It is much more convenient to use referral links because they directly get people to the target landing page and are tracked automatically by most analytics softwares so you can easily see the traffic and revenue they bring.
Influencers can use both promo codes and referral links depending on the platform rules, but using them together increases your chances of getting clicks and sales.
Some people will choose to go to your site directly in type in the code while others will prefer to click on the link.
Results are all that matters in our game so watch closely how your influencers perform and keep only the good ones.
Looking at conversions by promo code is great. You’ll see what type of deals work well and which influencers convert for you. But looking at the traffic gives more info for decision making so we recommend analyzing referral links more carefully.
Apart from the momentary impact of influencers on your sales, you should look at how they help you in the long run. Sometimes the effects of influencers on customer loyalty are surprising.
Maybe one influencer gets you good immediate sales but none of these customers returns to shop again. And maybe others attract fewer but more engaged customers who place many repeat orders.
That’s worth exploring because influencers with good retention results actually make a few sales on each conversion, meaning you get an ROI times higher for the same money.
Metrilo does monitor customer retention by coupons and campaigns over time.
If you already use Metrilo, you can monitor influencer results and make budgeting decisions based on the data.
If you want to use a dedicated referral link for each influencer, you can track the traffic and conversions coming through that link as follows:
If you want to track a whole campaign that features many influencers and/or lots of coupon codes, we got you covered, too:
If you want to simply compare different types of coupons across influencers, here’s how to do it:
This way, you get each coupon’s impact on sales. It’s useful when you have unique coupons for each influencer or combine influencer and channels, e.g. MarinaInsta, MarinaFB.
And finally, if you wish to track how influencers impact your sales over the long term, use Metrilo’s Retention analysis.
There, you see customers clustered in cohorts by campaign or coupon associated with their first order, and how the cohorts behave over time – how much they buy, when they place their next orders, etc.
This way you’ll see which influencers bring customers who become loyals and shop a lot, and which influencers bring only one-time buyers. For customer-centric brands concerned with their image and appeal, finding the right fit with influencers is important so long-term effects should be taken into account, too.
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