How to measure the ROI of KOL Marketing
Have you started your next KOL marketing campaign?
This is why this type of marketing is booming. Its average rate of return is 11 times that of traditional digital marketing, so it’s worth investing. But calculating the ROI can be difficult.
In this guide, we’ll show you how to measure the ROI of your KOLs.
What is your main goal?
Did you know that the number of KOL marketing campaigns is expected to double in 2019?
However, most of these influential activities will never begin because the companies behind them do not know what their main goals are. Any KOL marketing organization must understand different key performance indicators.
- Got engaged
- Followers grow
To begin calculating your ROI, you should first determine which performance metrics are relevant to your campaign.
View cost per action
Calculating the ROI is so difficult because it is almost impossible to attribute the KOL’s marketing activities to specific sales. This is why companies typically use the cost of each operation.
These are things like CPM, average cost of sales, and call rates.
These are then compared to baseline averages from different social media platforms. They are different in every industry and this information is easy to find.
You can then fully compare your impact marketing statistics with these averages to determine if you are doing the right thing.
Use your own baseline statistics
At the end of the smart business, data is kept in previous campaigns for years so they can use them to collect data. Before you start an influence marketing campaign, you may get statistics from social media campaigns.
If you have years of data, you will get more accurate results because you can consider seasonal trends.
You should use these baseline statistics to calculate the “boost” of the next KOLr’s marketing campaign.
Of course, due to seasonal trends, there will be some speculation.
Is the cost worth it?
Even if you don’t launch an influential marketing campaign to generate sales, you should still have a broad understanding of how recent campaigns can generate more revenue for your business.
Running campaigns to drive followers growth will ultimately lead to sales, so try to determine if your campaigns will increase sales.
As a company, the only important thing is sales. We don’t build big social media concerns for fun. We do this to create income, so always keep this in mind.
Last sentence – this is not an exact science
You can never calculate the ROI marketing for KOLs to the dollar. There are some guesses involved. You only need to apply common sense when determining whether an KOL’s marketing campaign is successful.
Review each campaign at the end and think about how to get better results in the future.
How is your recent KOL marketing activity?