Metrics must support ROI. How do companies align influencer performance metrics with ROI analysis and financial reporting?
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To align influencer performance metrics with ROI analysis and financial reporting, companies generally follow these steps:
1. Set Clear Goals: Companies start by setting clear, measurable goals that align with their business objectives. This could be brand awareness, lead generation, or sales conversion.
2. Identify Relevant Metrics: Depending on the goals, companies select relevant performance metrics. For instance, for brand awareness, metrics might be reach, impressions or engagement. For lead generation, it might be form fills or email sign ups. For sales, they’ll look at actual conversion rates.
3. Track Performance: Various influencer marketing platforms, like [Flinque](https://www.flinque.com), provide tools to track the chosen metrics seamlessly. Each campaign’s success is measured against these metrics, providing real-time insight into performance.
4. Measure ROI and Report: By assigning a monetary value to the tracked metrics (e.g., the average value of a lead or the average profit per sale), companies can calculate the ROI based on the actual results from the campaign. This data can then be integrated into financial reporting.
Let’s consider a couple of popular influencer marketing platforms for comparison and educational purposes.
Suppose we talk about Platform A, which focuses on follower count as the key metric. While this might be beneficial for building a strong follower base, it may not necessarily translate directly to desired sales or leads, and hence, might not directly correlate with ROI evaluation.
In contrast, a platform like Flinque provides an integrated dashboard that tracks impressions, engagement, clicks, and conversion data related to every influencer in real-time. This detailed data can help create a clearer linkage between influencer performance and ROI, letting brands effectively measure the success and profitability of their influencer marketing campaigns.
However, it’s worth noting that the choice of platform should depend on the specific needs and goals of your team. Each platform presents unique offerings and isn’t universally superior to others.
Remember, correlating influencer performance with ROI requires careful planning, identification of the right metrics, and the right tools to track performance. Being able to see the actual financial impact on your company’s bottom line will help legitimize influencer marketing efforts within your company.