Calculating and Tracking ROI
One of the most important parts of an influencer campaign is measuring effectively return on investment, or as insiders call it, “ROI.”
Though the types of returns a company might want out of an influencer can vary—increased exposure could be one example—ROI more often than not, refers to the amount of money that a brand expects to make after investing in a marketing campaign. Among those expenses will be the influencer, while company profits arrive at the end of a trickle-down effect that begins with social media posts and moves through the campaign’s reach and other outcomes. So ROI is a vital for companies to measure, but it also helps influencers to understand the dollar value of their work. With a comprehension of ROI they will know what is a fair charge for a brand, or, if they have been commissioned, when they are being low-balled.
But how can ROI—especially in the abstract context of social media marketing influencer work—be calculated? Here are a few relatively simple methods.
Websites can be rigged to have multiple web addresses send people to the same page, and there are a number of platforms where users can craft customized links. Of course, all this traffic to a website can be monitored, too. The influencer and brand could collaborate on a custom link that will only be shared in specific posts, and easily identifiable in the website’s analytics.
Ways to track ROI
Say you’re on influencer promoting “Dan’s Widgets” and his website’s address is www.widgetsbydan.com. Dan’s web developer can program the site to welcome visitors also going to http://www.widgetsbydan.com/INFLUENCER, which is the link that the you, the influencer, shared exclusively in social media posts. Dan can then see, usually in real time, how many people you’ve sent to his site and count the clicks.
Imagine Dan sold a lot of widgets the last time he used you and your customized link. Now he wants to offer the people you’ve directed to his site a special price, just for them. In your promotional posts, you tell your followers to utilize a distinct promo code in their widget purchase that they can insert somewhere into the website. Again, Dan will easily see how many people you’ve specifically sent his way to purchase his widgets.
You don’t even have to make things as complicated as the two suggestions above. Your old friend Dan can simply measure his site traffic and sales within timeframes corresponding to when you promoted him on social media versus stretches of time where you didn’t, and then split the difference to find the ROI. And you probably don’t even have to keep a log for when you posted. Most platforms embed that information somewhere in the post already anyway.