It is not unusual for businesses to design and re-design strategies in order to maximize revenues. At the end of the day, all it matters for companies is to make sure the “bottom line” is cleared. Influencer marketing is one such arrow in the quiver of businesses. These businesses that are potentially benefiting from it has a promising future ahead as well.
The evolving nature of business strategies in recent times, especially in the backdrop of rising of social media, has made way for influencer marketing to play its part effectively. Rather than just using traditional marketing tactics, companies and organizations are harnessing the popularity of social influencers to their advantage. This unprecedented rise of social influencers is helping businesses promote their brand, extend their outreach, increase their awareness among people and acquire new customers for them.
According to a survey carried out by Bloglovin, 71% businesses said that influencer marketing is a great way for growing awareness about their brands on various social media platforms; 67% businesses owners agreed that influencer marketing campaigns are helping them reach targeted audience; while 32% of businesses accepted that influencer marketing is the essential part of their marketing strategy. These facts and figures are indeed impressive and equally encouraging for businesses.
However, the key question is: How influencer marketing is helping businesses? Here is how it is benefiting companies:
Influencer marketing increases social media presence
Social media is gaining popularity at a galactic pace as more and more people are joining various social media platforms on a daily basis. In the United States alone, today a whopping 81% people are on social media all the time. This makes it absolutely pertinent for business owners to increase their own social media presence. This is where influencers come in who create, share or like content by mentioning brands. Influencers reach out to their social networks regarding information about what a particular business is offering. The dissemination of this information across various social media channels helps businesses increase their footprints and social media presence.
It creates customer loyalty
Influencers have a large number of followers who trust their opinions and recommendations. This authority and credibility in their audience base increase customer loyalty also. When good words and a positive evaluation of the benefits of a specific product or service come from influencers, their followers more often than not accept it as a leap of faith. Since influencers are also responsible for increasing brand awareness, the position of brands also improves in the marketplace. Putting an influencer behind a brand adds a personal touch and allows a deeper relationship with consumers. This cult loyalty is a way of motivating friends and family to also join a brand experience.
It effectively targets niche market
In an effort to achieve penetration and setting themselves apart, businesses are investing heavily in influencer marketing. Since marketing is all about smart targeting, and it is pertinent for business to understand their customers, so it is vital to define the niche market segment. A product mention on the part of influencers enables companies to get targeted exposure to the right kind of consumers. By their very nature, influencers can sway opinions and decisions of their followers in a big way. A study conducted by BrightLocal, 88% consumers trust online reviews by other consumers as much as they trust recommendations by their friends and family members.
“The user-generated content, especially well-balanced and genuine product reviews make a significant impact on the psyche of consumers, which prompt them to go with the given product or service and make a purchase,” said Nicholas Chachula, co-founder of iCustomlabel.
It is cost-effective
It is always a profitable proposition for brands to cultivate a real, human advocate who can influence potential consumers in a cost-effective manner of course. According to Deloitte, customers obtained through word-by-mouth have 37% higher retention rate than other strategies. Another survey by Tomoson ranked influencer marketing alongside e-mail marketing ahead of organic search, paid search, display ads, and affiliate marketing. Since followers already trust the voice of influencers, the influencer marketing, therefore, picks up where paid search falls short by turning awareness into conversion. Furthermore, this strategy is so cost-effective that businesses can afford to make mistakes and refining their processes. They can try various types of collaborations with influencers.
It makes a positive impact on SEO
Influencer marketing helps build inbound links by creating content-driven influencer campaigns. Businesses are taking advantage of influencers’ community in order to enhance their brand visibility through social media, blogs, and vlogs. The influencers develop and share unique and compelling content that the target audience cannot simply resist. Both the parties – influencers and businesses – can greatly benefit from one another’s authority, which means more visibility to both of them. In recent years, it is easier for companies to rank higher in search engine results by producing quality content and seeding it key influencers rather than investing in costly advertising. SEO and influencer marketing are now going hand in hand. Also, off-page SEO not just needs more shares and likes, but also the level of influence as to who re-tweets or shares the content.
It gives high return on investment
Businesses are considering influencer marketing as a perfect way to boost reach and relevance. According to an eMarketer survey, 48% of companies are significantly increasing their marketing budget. Influencers create highly relevant and professionally applicable content for their niche area. This method of campaigning results in the increase of sales of a particular product or service. It essentially raises awareness regarding a brand with a view to generate future sales rather than immediate ones. As a matter of fact, the total number of likes, comments, shares and re-tweets in social media shows how many people have not just seen a product and how they feel about it. So, when it comes to ROI, it all comes down to numbers. It is certainly increased by influencer marketing.
Influencer marketing is here to stay and it will prove a dark horse in the long run. Businesses are hugely benefiting when they increase the power of their brand voice via influencers. Thus, the business-influencer relationship will be a win-win proposition for all us to see.