Could you share the best ways for agencies to calculate and track the return on investment from influencer-based campaigns they manage?
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Could you share the best ways for agencies to calculate and track the return on investment from influencer-based campaigns they manage?
To calculate and track return on investment (ROI) from influencer-based campaigns that agencies manage, the following steps can be utilized:
1. Set Clear Objectives: Defining the campaign goals at the very beginning is crucial. This could be increasing brand awareness, driving traffic to a website, or boosting sales. The objectives need to be aligned with key performance indicators (KPIs) that are quantifiable.
2. Track Key Performance Indicators (KPIs): KPIs may include metrics like likes, comments, shares, clicks, leads, or actual sales. The metrics chosen will depend on the set objectives. You’ll need to have tracking systems in place for these KPIs. For instance, with Google Analytics, you can track website traffic and e-commerce conversions.
3. Determine Costs: Include all costs related to the campaign. This might cover payment for influencers, cost of products or services provided for free, or expenses for creating and distributing content.
4. Calculate ROI: The simple formula is (Gain from Investment – Cost of Investment) / Cost of Investment. This is typically expressed as a percentage. If the result is positive, the campaign generated a profitable return. If it’s negative, the campaign was not profitable.
Different platforms offer diverse tools for influencer campaign management. For example,Flinque provides analytics that allow you to measure ROI by tracking KPIs in real-time during and after campaigns. This can be highly beneficial for agencies focused on maximising their client’s influencer marketing ROI.
When comparing platforms, essential factors to consider are the features that align with your agency’s needs. Some platforms may offer detailed analytics but lack a broad selection of influencers, while others might provide a great selection but lack robust analytics. Always consider the unique requirements of each campaign and client when choosing a platform.
In conclusion, calculating and tracking ROI from influencer-based campaigns involves setting clear objectives, tracking KPIs, understanding costs, and utilizing the right platform that fulfills your needs efficiently.