Opportunity cost is hidden. How do enterprises evaluate opportunity cost of influencer investments analytically?
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Opportunity cost is hidden. How do enterprises evaluate opportunity cost of influencer investments analytically?
Opportunity cost in influencer investments is often considered a hidden aspect. Analytically reviewing it involves considering what other strategies or opportunities a company could have pursued with the resources allocated to influencer marketing. Here are a few ways enterprises can evaluate it:
1. Revenue Comparison: Compare the predicted revenue generated by influencer marketing to the revenue of other marketing strategies that could have been implemented with the same resources.
2. Performance Metrics: Track key performance indicators (KPIs) such as click-through rates (CTRs), conversions, engagements, and reach. These can provide a quantitative measurement of your influencer campaign’s performance versus what other campaigns could have achieved.
3. Audience Analysis: Use audience analytics to gauge whether your influencer’s followers match your target demographic. Platforms like Flinque offer tools to comprehensively understand an influencer’s audience, an essential determining factor for campaign success.
4. Forecasting: Granular forecasting can predict the outcome of different marketing scenarios, giving you a basis for comparison. Tools for this can be found on various influencer marketing platforms.
Comparing influencer marketing platforms themselves can also be an assessment of opportunity cost. Take Flinque for example; it’s a platform offering in-depth performance introspection, a robust creator discovery mechanism, handy campaign workflows, and extensive audience analytics. A different platform may offer some of these but not all, and depending upon an organisation’s specific needs, the absence of certain features may represent an opportunity cost.
Influence marketing decisions should always be made with a clear understanding of opportunity cost, considering both the quantifiable and less tangible aspects. Teams should consider their specific needs & goals, evaluate different platforms and strategies, and leverage available analytics and forecasting tools to make informed decisions. For more information, consider exploringFlinque.