Many different KPIs serve a purpose for various elements of your strategy, but when it comes to influencer marketing, there are five the most essential ones you should focus on. These KPIs will help you track your progress, measure success in meeting your goals, and help you stay on track with your influencer marketing campaign.
Engagement Rate
Engagement is crucial because it helps you measure how effectively your content reaches your audience. Secondly, it lets you understand what content works best for you and your brand.
A single engagement can be one of several actions your audience takes, including likes, reactions, shares, clicks, comments, votes, video views, brand mentions, etc.
For example, the engagement rate can be calculated by dividing the number of likes, comments, and shares by the total number of views for each video. If your influencer has 10,000 views but only gets 1,000 likes on the latest video, then the engagement rate would be 10%.
Engaging with influencers and creating content that resonates with their followers will help increase engagement rates and boost sales.
Return On Investment (ROI)
Return on investment is a single metric representing the return per unit of investment in your influencer marketing campaign. It is one of the most important KPIs for measuring the success of your campaign.
ROI can be calculated by comparing the results of your campaign to the money spent on it (ROI = Net income / Cost of investment x 100). For example, if you spend $500 on an influencer marketing campaign and get $2,000 in sales from those posts, your ROI is 300%.
If your ROI is lower than expected, it means the cost per conversion is too high, and you need to rethink your budget and strategy accordingly. Conversely, if it’s higher than expected, consider increasing your budget since it will be more profitable than expected.
Average Views and Click-Through Rate (CTR)
When working with influencers, you also want to track two key metrics: average views and click-through rate (CTR).
Average Views: the number of views an influencer video has received is a great way to measure the reach of your campaign. You can also use this data to help determine if the content you’re producing resonates with your audience.
Click-through Rate (CTR): the percentage of viewers who click through to a website from an advertisement or post.
Compare the average viewership and CTR of the creator’s videos to the video with your sponsorship. This lets you understand whether your content is performing well and whether the influencer’s audience likes your game.
User-generated Content
When you work with influencers, it’s usual for them to be in charge of content creation. Depending on your agreement, you’ll have varying degrees of control over the content they create.
The influencers can also encourage their followers to create content which is called user-generated content (UGC). You can determine how well your partnership is going by tracking the number of created UGCs.
You can track the value of content creation for your influencer marketing in two ways. These are: the amount of content produced and content quality.
Conversions
An easy way to track conversions generated by the influencer marketing campaign is to track sales before, during, and after the campaign and compare any changes in sales that happened when the campaign was running.
However, conversions are not always connected with sales. For example, any time a prospect completes a desired action can also be counted as a conversion. Other conversion rates you can track include how many Facebook likes you generate, how many new followers you obtain, how many people sign up for emails, and other non-sales-related conversions.
In conclusion, the importance of each KPI might differ depending on the campaign’s goal, content, and platform. However, understanding these 5 influencer marketing KPIs can help you better understand how well your influencer marketing campaigns are performing and make necessary adjustments to ensure that they are achieving the desired results.
Read More about Influencer Marketing:
Influencer Marketing: 5 Tips for Starting Your First Campaign
Influencer Marketing: Effects and Implications of IDFA Deprecation
