Grow Your Business with Influencer Marketing

By Steven Krohn · August 25, 2017

Are you wondering how to grow your business using influencer marketing? This has been a hot topic and for good reason. Influencer marketing is a powerful tactic since consumers are more likely to trust recommendations from a third party rather than the brand itself.

Why Use Influencer Marketing?

Although a fairly new strategy, influencer marketing continues to be a good solution for marketing departments that think outside the box. They realize that you can, and will, build trust with the target market. Most everyone is now moving towards it. You may be skeptical about growing your business with influencer marketing, but you’ll be left behind by not taking advantage of it.

The power of influencer marketing is real. When surveyed, 92% of consumers stated that they trust personal recommendations more than any other form of advertising. This statistic is especially true among the Millenniums.

Compared to previous generations, there has been a shift in how information is received. People today don’t want to receive their advertisements from newspapers or television. Brand Ambassadors provide excellent marketing opportunities and should be leveraged into power and advantage.

Identifying Social Influencers

In deciding how to grow your business with influencer marketing, start with a few key players. Choosing the perfect influencer is a challenge. The three types of people responsible for influencing the public are connectors, mavens and salespeople. These individuals are responsible for creating, communicating, and connecting people to your message.

Mavens are individuals who like to consume and share their experience with others. Salespeople are persuasive types with charm and charisma. Connectors are individuals who build networks with a large “following”. The connectors are masters at word-of-mouth communication when they are sharing valuable information.

Although connectors are the ideal type of person to use in influencer marketing, there are three primary considerations when choosing influencers for a brand. First is “reach”.

An influencer only fills this role if they actually influence others. When choosing a person on social media, look for the total number of followers. Be sure to look at their follower engagement also as a measurement of reach.

Second, look at their audience. One mistake among influencer marketing is pursuing a person who has a large following but no engagement. Look at their audience and make sure that it matches your brand or company. An athlete would be a good fit for athletic wear but probably not a good fit for a software company.

Lastly, there is a natural approach that is important. Influencers are willing to promote a product or service for a fee. If they take too much interest or promote a plethora of products, their effectiveness is going to wear off.

Align yourself with people who can take a natural approach to marketing. These are individuals who are willing to partner with some brands but are selective about their choices.

Building the Relationship

Upon choosing the key players for influencer marketing, keep them satisfied by making sure that they are well compensated. Up to 45% of influencers feel that brands aren’t providing them with sufficient reimbursement for their efforts. If someone is willing to share positive reviews about a brand, they should be paid well for it.

Money is the most common enticement but it doesn’t have to be the only reward provided. Influencers also like to receive free or discounted products from the brand. This can be a good perk that will keep the program going.

Commissions are also a good idea because they motivate the person to market the product as much as possible. Various compensation strategies can be effective. Be willing to work with marketers to determine what works best for them.

Set a Budget and Monitor It

Before getting started with any of this advice, start by setting a budget. Monitor return on investment over a period of time. On average, businesses generate $6.50 of revenue for every dollar that they spend on influencer marketing.

It’s natural to think this will be the case for every business. It can take time to choose the right individuals to produce the results you want. Stick to the budgeted amount and track the ROI to determine if this marketing strategy is working well.

Businesses today know that influencer marketing is effective and efficient. If you want to grow your business with influencer marketing, now is the time. Use this advice as a good foundation to get started.