What is Data Driven Influencer Marketing?

Data-driven influencer marketing has become very popular lately and the fact is that every company will need to invest sooner or later.

Before we get into the details of this topic, you first need to know what data-driven influencer marketing is and how it differs from “regular” marketing.

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Data-driven influencer marketing

Of course, data-driven influencer marketing is based on data that you can collect from ongoing campaigns. The goal of collecting data is to measure how well your influencers are performing on their own, including how well the campaign is developing overall. After the end of the campaign, the data can be used to calculate your ROI (return on investment) and optimize future campaigns.

Your task is simply to figure out how much value you get from the money you spend and try to list how you can optimize your strategy and get even more value. As you may understand, there is a lot of data that you can measure and therefore it is important that you know which one is best to focus on.

To help you understand which data is most important, we will take a look at a campaign using the AIDA model and we will focus on a sales funnel with three levels.

Note that a sales funnel can be divided into several levels depending on how detailed you want your data to be, but in an attempt to keep our guide as clear as possible, we have chosen to focus only on three levels: top, middle and bottom.

Data driven influencer marketing at the top of the sales funnel

When using the AIDA model you look at a marketing campaign through a so-called sales funnel, although you already know that. In the first level of the sales funnel, the goal is to capture a potential customer’s attention by informing them about the product being offered. The right influencer for your target audience. In this part of your campaign, you should have a high level of commitment and try to reach as many people as possible through a high reach.

One of the easiest ways to determine how a campaign is performing at this level is to take a look at how users interact with your content. Do your influencer’s posts receive many likes, comments and shares? Are the comments positive or negative? Do users show an interest by asking questions? The higher the commitment you have here, the greater your reach and the higher the likelihood that the rest of the campaign will go well.

The data we look at at the top of the sales funnel is:

Cost per Impression – You want the number of impressions to be as high as possible and that the cost is as low as possible.

Cost per Engaged User (Cost per Engagement, CPE) – This figure should be as low as possible, ie You want to engage a lot of customers for a small cost.

Engagement rate – Here you want high numbers as your data-driven strategy depends on you being able to create engagement.

Computer-driven influencer marketing in the middle of the sales funnel

Hopefully the first part of your campaign went well and your influencers managed to engage a large collection of potential customers. As I said, high commitment early in the campaign means that your opportunities later in the campaign increase.

In the middle of the sales funnel, your job is to make sure that the customers who see your posts on influencers’ profiles click on the links you want so that they can be introduced to your products by visiting your site. The goal here is to convince customers that they will continue to the next step in the funnel where they will make a purchase.

When we are in the middle of the funnel, we take a closer look at the following data:

Cost-per-click (CPC) – You want every click to be as cheap as possible.

Number of Clicks (Click through Rate, CTR) – You want the number of clicks to be high as it means that many have been introduced to your product and that interest exists.

This data is interconnected in several ways and, as a rule, a high CTR means that the CPC falls and vice versa.

Data driven influencer marketing at the bottom of the sales funnel

The bottom of the sales funnel is the final step in your campaign and this is where you have to convince the customer to buy the products or services you sell. Of course, this step is one of the most important as a campaign without sales is a failure. Just don’t forget that the first two steps must work first – the sales funnel is an interaction between the different levels.

One of the most important aspects when you come to this part of the sales funnel is that you have a simple and optimized landing page to refer customers to, otherwise the chances of them completing their purchases will decrease. A good landing page must be nicely designed, easy to use and it should offer something unique. In most cases, we recommend that you offer good prices and offers for your campaigns.

By distributing unique URLs to each influencer, you will be able to track how much each influencer contributed to different campaigns and how much traffic each one drove. Beatly always offers traceable URLs.

If you have hired the right influencer you should have a high commitment and a high CTR and hopefully you have also succeeded in persuading customers that they are in need of what you sell. This is where you will see the actual results of your campaign whether you are selling products or trying to gain more followers on social media.

In the bottom of the sales funnel we look at many different factors, but in general the following are most important:

Conversion – Is your conversion high? Well, that means the campaign worked! Is your conversion low? It’s less good and you need to find a solution.
Cost per Action – How much did each paying customer cost? The lower the better.
Return on Investment (ROI) – Was the campaign worth the amount you invested in it? Did you make a profit or did it cost more to hire influencers than you earned in the end?

The most important data in data driven influencer marketing

Let’s summarize it all with a quick review of the data that you want to focus on evaluating.

Cost per Impression (Cost per Impression)
Cost Per Engaged Customer (Cost Per Engagement)
Engagement Rate
Cost per Click
Click Through Rate
Conversion rate
Cost per Acquisition
Return on Investment (ROI)

We believe that these eight CPIs are the most important to focus on for all campaigns, but it is far from everyone. Depending on what kind of campaign you run, there will be other data that is at least as important and that is up to you, based on your goals that determine which ones are most relevant.

Now the only question is how to collect all this information?

In fact, you have two choices. Either you do it on your own or you let us help you with our automatic system that has collected statistics from influencers and their campaigns for several years.

Micro vs. macro influencers for data-driven campaigns

We thought about offering a little bonus tip on how you can maximize your influencer marketing campaigns. By choosing the right kind of influencer, you can have a drastic impact on your results.

In recent years, several studies have been conducted regarding the size of influencers and whether large accounts are better or smaller. Surprisingly, all investigations have arrived at the same results.

Today, there is no doubt that micro-influencers with less than 50,000 followers deliver the best results, especially if you compare specific data. In the vast majority of cases, smaller influencers produce results and data that are significantly much better than large influencers, and the same pattern is found in all industries. It doesn’t matter if you measure cost per click or ROI – micro-influencers are by far better.

The only exception is that in some cases large influencers may have higher involvement thanks to their reach. But as I said, high level of engagement doesn’t matter if the rest of the data doesn’t hold the same dimensions.

Our point is that micro-influencers are extremely important for those who want to maximize their results and run successful campaigns based on data.

A brief summary of data-driven influencer marketing

Data-driven influencer marketing is about collecting and evaluating data from a campaign to clarify how effective the campaign and influencers are using. The data is then used to optimize their future campaigns.

It can be time-consuming to collect and manage all this information and in addition it requires a deep understanding of how influencer marketing works. Unfortunately, a lack of knowledge and limited workforce that can handle the data means that many brands never manage to streamline their campaigns. But luckily there is a simple solution.

When you use our services, all data is collected automatically and together with our experienced team our system can guarantee that your campaigns are run at the highest possible level but also that they are constantly improved.

Do you want to start with data-driven influencer marketing? Then we suggest that you start an account with us so that we can get started right away.