If you’ve ever run an influencer campaign, you know it’s not just about working with someone who has a big following. Real results come when you understand how to measure influencer marketing ROI, otherwise, you’re just guessing.
Knowing how to measure influencer marketing ROI helps you track what’s working, cut what’s not, and spend smarter. In this post, I’ll walk you through the process step by step, in a way that’s easy to understand and apply.
Read on to learn how.
How to Measure Influencer Marketing ROI the Right Way
If you’re struggling to hit your influencer marketing targets, here’s how to estimate your ROI like a pro.
Define Your Goals
Defining your goals is the first and most practical step when learning how to measure influencer marketing ROI. Without clear goals, tracking performance or knowing if your investment is worthwhile becomes almost impossible.
Setting the right goals also keeps everyone focused and motivated. Whether you’re working with an agency or an in-house team, having clear targets ensures you’re all on the same page.
Examples of influencer marketing goals that can be measured include the following:
- Boost Engagement: Track likes, comments, shares, and saves to measure how well the content connects with the audience. This helps you assess whether the influencer is sparking meaningful interaction with your brand.
- Increase Brand Awareness: You can track follower growth, reach, impressions, or mentions. This indicates whether more people are discovering and discussing your brand after a campaign.
- Generate Leads: Use forms, sign-ups, or gated content to capture interest once the influencer drives traffic to your site. When influencers drive traffic, a simple form like the one below can help you convert that interest into actionable leads.
Image via Jotform
Set Clear KPIs
The second step in learning how to measure influencer marketing ROI is setting clear key performance indicators (KPIs). KPIs are quantifiable metrics that help you track campaign performance effectively.
Clear KPIs also help you evaluate the performance of the brand ambassadors you work with. You’ll know who drives the best results and where to channel your investment. Examples of influencer marketing KPIs you can track include:
- Impression and Reach: Shows you the number of people who saw your content across different channels
- Engagement Rate: Covers direct interactions ranging from likes, comments, and shares
- Click-Through Rate: Tells you how many people clicked on your link after seeing the influencer’s post
Image via Investopedia
Use Tracking Tools
Using tracking tools is another crucial step in learning how to measure the ROI of influencer marketing. You can’t rely solely on likes or gut feelings when important decisions like budgeting are at stake.
According to the Attrock influencer marketing guide, you might have the most creative influencer marketing campaigns to get desired results. You need to design your campaigns with the latest trends and best practices in influencer marketing.
Here are some simple tools you can utilize even if you’re starting a business.
- UTM Parameters and Custom Links: UTM tracking modules allow you to tag links used in a campaign, enabling you to trace the origin of the traffic. You’ll know exactly which influencer is driving visits.
- Discount and Affiliate Codes: These tools provide unique codes that directly tie sales to an influencer, allowing you to reward them based on their impact.
- Analytics Platforms: Analytics options, such as Gmail Analytics and other email platforms, can provide insights into email sending, open rates, and delivery rates for email campaigns. or the time people spend on your web pages. They’re great for connecting influencer traffic to visitor behavior on your site.
Image via Google Analytics
According to the Small Business HQ guide, it’s good to be aware of the challenges around integration and data accuracy, especially if you’re using a CRM to track influencer interactions and customer journey touchpoints.
Calculate Your ROI
Calculating your ROI tells you whether your influencer campaign was worth the investment. It become more crucial if you are starting a business. It quantifies your results, helping you determine whether the money, time, and effort were worthwhile.
Furthermore, calculating ROI allows you to compare all your campaigns and the influencers you hired. Once you know your return, you can decide where to invest more and where to cut back in future influencer campaigns.
If you’re serious about learning how to measure influencer marketing ROI, here are some common calculations:
- ROI: This is calculated as (Revenue Generated – Total Campaign Cost) ÷ Total Campaign Cost. This formula provides percentage returns for what you earned compared to what you spent. Higher numbers mean more return for less cost.
Image via Investopedia
- Direct and Indirect Returns: This looks beyond sales and monitors brand mentions, email sign-ups, and new followers, among other metrics. You can also utilize product feedback software to gather customer input and enhance marketing campaigns.
Compare Against Benchmarks
When learning how to measure influencer marketing ROI, comparing your results against industry benchmarks is just as important. Benchmarks help you determine whether your influencer marketing efforts are ahead of or behind the curve.
Without a point of comparison, it’s challenging to gauge success or identify areas that require improvement. Benchmarks can also show where you’re consistently strong and where you’re falling short.
Here are some common benchmarks you can use to gauge success:
- Industry Averages: Check published data related to your industry to see if your engagement rates or brand mentions are above or below industry standards
- Past Campaign Results: Compare current numbers to your older campaigns to measure your growth
Wrapping Up
Learning how to measure the ROI of influencer marketing is crucial to the success of your campaign. It serves as a roadmap that shows you what you should do and where to direct your campaign efforts.
For optimal ROI measurement results, define your goals, set specific KPIs, and utilize tracking tools. Also, compare your performance against industry benchmarks.
