Businesses are reaping a lot from influencer marketing, they make more than $5 for every dollar spent. Moreover, studies have shown that among the fastest growing online channels is influencer marketing, it is far much better than other marketing strategies such as affiliate marketing, paid search, and display. But how do businesses earn revenue from influencer marketing? Here are some ways you can use influencer marketing to improve your business strategy.
1. Attract better customers
Influencer marketing attracts higher-quality customers to the business. Most businesses pour their ad budget down the grain just trying to boost their popularity. You want to buy Facebook followers on trusted sites so you increase your audience. This could be due to several reasons such as people trusting recommendations from those whom they know. To paint a picture, think of this; you have gone to the market to purchase some house utilities. The first seller has displays of ads and texts describing what the products do, their merits, and how to use them. The second seller explains details about the products by herself and you can see how passionate about the product she is. Where would you buy your house utilities? Passion is contagious.
People can feel the energy you radiate from selling your products and respond accordingly. Moreover, apart from celebrity marketing where the influencer has a lot of audience due to her fame, other types of influencer marketing such as the use of micro-influencers involve people following because they are genuinely interested in your product. Research conducted by Tomoson indicates that influencer marketing attracts more than 50% of higher-quality customers to the business. With good customers, there is an increase in sales which leads to increased profits and revenue.
2. Boost Return on Investment
If you have decided to use influencer marketing, you will reap great benefits. You will have an increased return on investment. For every dollar you invest, your business will reap more than $5.What does this mean? What is the long-term impact of this on your business? This means your ROI is more than 500%. Just image, 500%.Where else can you get such huge returns if not on influencer marketing? But how exactly do they achieve this?
How do companies boost sales? Come to think of it, why would one company have huge returns than another if they incur the same production cost and have the same quality of products? Now, Twitter and Annalect conducted research and from the research, it was glaringly true that more than 40% of respondents purchase an item online after watching an influencer use it. Just how much does 40% of respondents generate for a business? For instance, if you have a multimillion company it says a million respondents, 40% is around 400000 customers. Just imagine if 400000 people purchased a product worth a thousand dollars. You will reap more than millions. It’s the RIO generated from influencer marketing that makes it more outstanding than other digital methods. Compared to digital Media, influencer marketing generates 11 times more ROI.
3. Influencers connect your brand to Millennials and Generation Z
The productive proportion of the world’s population today majorly consists of millennials and generation. These two cohorts are techie and do not withstand boring traditional methods of marketing. As a business, you want to capture the cohorts. But how do you achieve this? Influencer marketing will just serve you right. With this, you get to attract consumers from these two segments thus not only bringing value to your business but also coming with long-term benefits.
4. Improves Brand Awareness
How do companies expand their reach while positioning themselves as industry leaders? Think of industry leaders such as Google and Apple. They have excellent products but this alone is not enough. There are other companies with better products than Apple. But how do you rate products? It’s after usage. As a business, your product can not be highly rated if you don’t market it. Through influencer marketing, your customers can learn about your brand and your story. The most outstanding benefit of influencer marketing is promoting brand awareness.
In the past, any form of marketing could get the attention of the consumers. Today, only ads that are tailored towards bringing value to consumers are given attention. Do you want to increase your leads? Do you want both web traffic and social media presence? What is waiting for? Dive into influencer marketing and start increasing your business returns.
