Why Influencer Marketing is suitable for every business
As digital disruption has become an all-around reality particularly catalyzed by Covid-19, companies and brands are doing everything in their power to make sure that they are not left behind in the race. A race not only for grabbing eyeballs and creating mind spaces among consumers and therefore for increased engagement, conversions and sales and but also for successfully sustaining that connect. While social media has definitely set the stage for digital marketing to find its natural pathway for traction and growth, influencer marketing has really come into its own in recent times as a highly specialized segment of digital marketing. Not only has there been an unprecedented proliferation of a number of influencers, of all categories, but the mushrooming number of influencer marketing agencies has also further come to systematize and consolidate this channel. Correspondingly, with the rise of micro and even nano influencers in terms of both numbers and impact value, the so-called budgetary barriers for all businesses, whether big or small, have come down significantly. Add to this the emergence of video as the centrepiece of content strategy and promotion on all digital platforms supported by ever-simplifying and easy-to-use interfaces, and at practically zero costs, the usage entry barriers have also come down for all businesses.
A ‘big’ arrow in the quiver for B2C companies
Whatever industry or sector a business operates in, in addition to other digital marketing tools, influencer marketing would come in very handy for all B2C companies. Whether it is a product company or a firm that provides services, influencer marketing would prove to be very helpful as long asit makes the right selection of influencers. Without doubt, the chosen influencer’s brand equity should align with the values that one wishes to communicate through his/her brand, product or service. Across product/service categories, whether one is an FMCG player, or a fashion and accessories provider, or a food & beverages brand, or a healthcare and fitness products seller, or even a parenting products retailer – influencer marketing can turn out to be a great means of raising product awareness as well as expanding customer base. Similarly, if one is a retail service provider, or offers an entertainment or media platform, or owns a technology product/service company, or runs a travel and lifestyle company, or even operates in BFSI space; influencer marketing can be a potent and highly impactful tool as part of marketing strategy.
Influencer marketing can find favor with B2B companies too
Just as it is a great force multiplier for B2C companies, employing influencers has also increasingly benefited B2B companies and therefore becoming routine for them. However, because of the inherently different nature and scope of operations that would characterize a B2B player as opposed to a B2C company, the former would need a somewhat different influencer marketing strategy than the latter. Not completely unlike B2C firms, they would need to be very discerning and circumspect in identification of influencers and formulation of their over-all strategy. Instead of selecting influencers based on personal networks and available public information – which could be driven by personal preferences and prejudices and therefore could be subjective – they could opt for software and algorithms sorting by multiple criteria for identification of an influencer appropriate for their company, thereby employing a more dispassionate approach. In fact, automation can also make it easy for B2B companies for subsequent tracking and even influencer payment. B2B companies can also avail of the end-to-end services offered by the large number of influencer marketing agencies making an appearance on the digital marketing landscape in recent years. Importantly, instead of campaign-to-campaign relationship management that a typical B2C company would engage in, B2B companies should take a long-term view of their influencer relationship management. According to the 2020 State of B2B Influencer Marketing Report, in the global context, 60% of marketers who deploy ongoing or Always-On programs are very successful as against 5% who carry out intermittent campaigns.This must be food for thought for Indian B2B companies. At the same time, it must be heartening to know that 34% of B2B businesses have employed third-party media or influencers in India according to a report on influencer marketing in India.
A flexible & scalable model: Allows fine-tuning of individual company strategies and goals
Depending on what industry and sector and at what stage of their organizational evolution they are, all businesses can thrash out their own influencer marketing strategies, set specific goals and measure their RoIs accordingly. For instance, a newbie could base its influencer marketing strategy with an eye on generating awareness for its products and services through views and impressions and benchmark its RoIs accordingly. Against this, a relatively well-established brand could likely focus on increased user engagement through clicks and actual conversions and sales. And in yet another instance, an established company desirous of entering a new market could likely concentrate on tracking lead generation for its products and brand. And once a company has executed its influencer marketing strategy on the ground, it can always scale it up if needed.
Big or small budget, works for everyone: the advent of micro & nano-influencers
For long, the traditional celebrity promotion route had been a budgeting challenge for marketers and companies given the often-disproportionate marketing spend that it entailed. However as digital platforms take deep roots with social media and video content enabling an instant, direct, and always-on conversational channel between brands, end-users and influencers with their huge following, the potential for leveraging this inter-connect is huge. And with Covid precipitating the rise of thousands of new-age influencers, particularly as micro and nano-influencers –who would charge a fraction of what a typical celebrity would take for fee – the economy of brand promotion has undergone a considerable shift allowing a more realistic fee regime for companies and brands. Research shows that influencers with lesser followings have typically had better engagement rates and drive higher RoI for companies. This must be music to the ears of small businesses with slim budgets. So, even as e-commerce behemoths have launched well-calibrated influencer programmes roping in influencers giving the latter commissions based on sales, there is no reason why smaller companies with smaller budgets can’t pursue this path.
Location-agnostic tool: Metropolitan cities to remote locations
While the broader digital marketing itself is location-agnostic underpinned by suitable digital infrastructure and equipment and managed by trained manpower, a business can explore influencer marketing route situated and operating in the remotest of locations and the most treacherous of terrain. Equally important is that an upstart with no prior experience with digital or influencer marketing can easily avail the services of hundreds of influencer marketing companies existing today in the country. With online technologies and platforms enabling content transmission in regional languages, a single influencer campaign can be run across different linguistic regions and markets simultaneously.
To encapsulate, influencer marketing offers something to every type of business. With dedicated influencer marketing budgets or even without them, companies are known to have pulled off marketing coups in new markets upstaging established biggies.
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About the author:
Nitin Sabharwal, COO, Optimise Media India