Analyzing the results of your influencer marketing collabs is really important. The ROI is one of the tools that help you determine if your partnership was profitable or not.
Influencer marketing campaigns can be an awesome boost for your brands. But it is important to analyze your results, otherwise, how do you know if your collaborations were profitable or not? So you need to calculate your ROI (return on investment). By calculating well, you will be able to see if your collaborations were profitable and if you were able to meet your objectives. This can of course helps you decide if you want to work again with these influencers in the future. This is why it is really important for you to calculate it.
You might not be familiar with the term “ROI” and that’s fine! ROI basically means the return on investment. This metric helps you determine if your investment was efficient or profitable. So if the results you got were worth the investment. In the case of an influencer marketing campaign, it helps you determine if the money you spent on your influencers were profitable compared to the results you got (sales, visibility…).
There are different ways to calculate ROI. It all depends on the objectives of your campaign. This is why you need to set clear objectives and goals when you plan your collaboration. Having goals will also help you determine which influencers you need to work with, and what type of collaborations you want them to do.
There are typically 3 main objectives you can reach with influencer marketing. Don’t hesitate to check our article on the benefits of influencer marketing to learn more. First of all, working with influencers can boost your brand awareness and visibility. Brand awareness means that consumers recognize your products and brand. Why is it important? Because consumers are more likely to buy from brands they are familiar with. By working with influencers who have a large following, you can be sure to gain visibility for your brand and if you work with multiple content creators on different social networks, this will definitely boost your brand awareness.
Influencer collabs can also have an impact on your brand engagement. By being featured on an influencer’s post you will of course gain visibility but also engagement, as their followers will check your brand account and engage with your posts if they are interested in your products.
Finally, influencer marketing can greatly boost your sales. In order to do that though, you need to work with the right influencers. You need to choose influencers that share your brand’s values and have a high engagement rate, as their followers will be more likely to like and buy your products. By targeting the right audience, you will see your sales skyrocket. And if you are skeptical about the impact of influencer collab, you should definitely read our article on how influencers affect consumer behavior.
One last thing to remember is that ROI differs on the social media you are choosing. For instance, it is quite easy to get views on TikTok, but harder to gain followers whereas on Instagram it is quite the opposite and the number of followers is more representative. So you need to keep that in mind when setting up your objectives and evaluating your ROI.
So how do we calculate ROI? In global marketing, ROI is calculated by dividing the benefit of investment by the cost of investment multiplied by 100.
When it comes to influencer marketing, the way to measure ROI depends on the objectives and the KPIs you chose for your campaign. So according to your objectives, you can look at the number of sales, the number of views, or your engagement rate…
There are 2 types of ROI for influencer marketing: qualitative VS quantitative. A qualitative ROI would be based on the quality of the comments you’re getting or the UGC (user-generated content) for instance. So qualitative ROI is a bit harder to evaluate as it will most likely be done manually.
ROI is usually calculated in the short term but when it comes down to brand awareness it is more interesting to measure in the long term.
Finally, you need to keep in mind different variables when evaluating your ROI. For instance the time of the year, people tend to be less active on social media during the summer holidays. You need to take into consideration the type of influencers you’re working with: are they micro, mega, or nano influencers? Is it a one-time partnership or a long-term collaboration? Lastly, you need to take into account the format and the longevity of the partnership, for instance, an Instagram story only lasts 24 hours.
Most of the time, brands want to know if their influencers generated sales or not. The good news is it is one of the easiest ways to calculate RIO but for that, you need to use the right tool.
When planning a collaboration make sure to give each of your influencers a personalized trackable link that they will share with their followers. They can share it directly in their story or by putting the link in their bio. A trackable link allows you to see how many visitors to your website come from this link.
On Favikon, you can easily create a trackable link within 2 clicks. All you have to do is to go on the messaging feature and contact your influencers. Once they have agreed to the collaboration, you can check the column “working with”. Then all you have to do is click on one button and your link will be created. Make sure to check our article to know how to create affiliate links on Instagram.
Remember to always calculate your ROI once your campaigns are over. Analyze your results to see if they were profitable. This will also help you determine if you want to work with these influencers again or not. There are many ways to calculate ROI, it all depends on the objectives and goals that you set before launching your campaign. It is important to know if your collabs were profitable because you want to know if you should work with these influencers again. Especially since long-term partnerships are becoming more and more popular. These types of partnerships are great because they are seen as more genuine thus they are often more effective than one-time deals.
You can’t manage everything unless you have superpowers. Luckily for us, there are many tools designed to help you with your daily tasks. Let’s find out which marketing tools you should use!
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