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How to Measure Influencer Marketing ROI: The Ultimate Guide
If you wish to know how to measure influencer marketing ROI then you are definitely at the right place.
Sure, you might have an amazing idea for your next influencer marketing campaign but how do you find out whether the campaign is giving you good returns on your investment? No matter how good your campaign might be or how meticulously you planned it, without measuring its returns, your campaign deems useless. Because after all, when you put your hard-earned money into something, it is your right to know whether it is giving you results.
Not just that but measuring ROI on your influencer marketing campaigns will also help you determine where you are going wrong, what you need to improve, and how much money you need to shell out for your upcoming campaigns.
The influencer marketing industry is creating an explosion and its numbers are only expected to grow in the coming years. However, only two-thirds of agencies are known to measure their ROI, according to a survey.
Here, in this article, we tell you some simple ways on how to calculate ROI on influencer marketing campaigns.
How to Measure ROI of Influencer Marketing Campaign?
1. Set your campaign goals
You cannot run a campaign unless you have a fixed goal in mind. A campaign without a fixed goal would be totally pointless. Setting goals will give you a direction and some clarity on what you wish to achieve.
What exactly is it that you wish to achieve through your influencer marketing efforts? Set very clear goals and be as specific as you can about them.
Your goals could be:
- Increasing brand awareness
- Getting more leads
- Get more followers and build an audience
- More engagement for your brand, etc.
Setting your campaign goals is your first step towards measuring your influencer marketing campaign ROI. Make sure that you set realistic, attainable, measurable, and specific goals.
2. Determine Metrics that are relevant to your Goal
The next step on how to measure influencer marketing ROI is to identify metrics that best resonate with your goals. You need to identify your KPIs in order to measure your goals.
So, for example, if your goal was to increase your brand awareness then your metric could be your social media reach. That includes everything right from your impressions, likes, to your follower growth rate. You can measure these metrics over a period of time to identify whether your influencer marketing campaign is giving you any results.
Similarly, if you are looking to increase leads then you can take a look at your CTR, and conversion rates. This will give you an idea of whether your conversions or leads have actually increased after you started running influencer marketing campaigns.
In a similar manner, you can identify metrics that best correspond with your goals.
3. Define Targets for Influencers
In order to have a successful campaign with maximum ROI, you need to define targets for influencers as well. It is much like how you define your own goals and then convey that to your influencers as well.
Whether it is increasing brand awareness or getting more conversions, defining clear targets for influencers will get you that much closer to your goals. Explain to them your objective behind the campaign, your message, and the time frame needed for the campaign. This would make things easier not just for you but for the influencer as well.
4. Ask Influencers for Reports and Track Everything
Asking influencers for regular reports will help you determine how well your campaign is working. This will, ultimately, help you get a better idea of your ROI. Similarly, it is also extremely important that you track everything like tracking links. Create custom tracking links for every influencer that you work with so that you can evaluate the performance of every influencer individually.
If you do separate coupon codes for influencers, it is also a good way of finding out the results that you are getting.
5. Add up all your costs
The next step on how to measure ROI of influencer marketing platform would be to add up all of your costs. To ultimately know whether your campaign was worth it, you would need to know how much it actually cost you.
You need to add up each and every cost that you need to incur for your influencer marketing campaign. It could include the influencer fees, the cost of any freebies that you might be sending out to them, any transportation charges, any software/ tools that you might be using, etc. Also, take into consideration the time that you would need to complete this campaign and then add up all of your costs.
6. Calculate your Returns
After you have successfully completed the above step, it is finally time to calculate your returns.
Your returns might not always be all money-related but could also be in terms of increased follower count, more engagement, etc. Also, take the amount that you get per engagement and multiply it by the total engagement that you have gotten.
Similarly, consider each and every metric and calculate your returns meticulously.
7. Get your ROI
ROI can only be calculated after you know have added up your costs and then calculated your returns. A simple ROI formula is: (Return/ Cost) X 100= ROI.
It is that easy! Put your returns and cost into the formula and get your ROI. The final number that you get will give you an answer to whether your influencer marketing campaign was worth it or not. However, remember that you need to calculate everything carefully in order to get ROI correctly.
Voila! That is how to measure ROI of influencer marketing campaign in just 7 easy steps. Do try this out with your next campaign and tell us how well it worked for you. And if wish to save yourself the hassle and complete successful influencer marketing campaigns, contact Pokeify.