How influencer marketing can help small businesses and startups drive growth
Source: Statista, Nov 2023
Influencer marketing has seen steady growth over the years, and there seems to be no sign of stopping. While the common misconception is that one needs to have a huge budget to invest in influencer marketing, small businesses could also leverage them to meet their marketing and growth objectives.
Types of Influencers Your Business Needs to Know
Before we dive into the benefits, it’s important to note the type of influencers that businesses generally work with.
Nano-influencers. Typically, they have between 1,000 to 10,000 followers.
Micro-influencers. Usually have between 10,000 and 100,000 followers. Furthermore, many influencers prefer to focus their time and energy on a specific area.
Macro-influencers. They have a following of 100,000 to 1,000,000 followers, and have a certain influence on their followers to effectively connect with a wider range of people.
Mega-influencers. With more than a million followers, these influencers can get a "massive reach in just one hit”.
Although businesses might benefit from influencers with a larger following due to increased visibility and reach, this does not mean that they are the best choice for every marketing campaign. Some factors should be considered when engaging influencers, such as Audience Relevance, Cost-Effectiveness, Campaign Objectives, Geographic Considerations, Long-Term Relationships and the nature of the product or service.
Benefits of Influencer Marketing for Small Businesses and Startups
Influencer marketing can be a powerful strategy for small businesses and startups, offering a range of benefits that can contribute to brand awareness, credibility, and overall business growth.
Increased brand awareness and reach
Marketing with influencers allows small businesses to tap into the influencer's existing audience, helping to increase brand visibility and awareness. In addition, businesses can leverage influencers to increase their distribution channel. Nano and Micro influencers, in particular, offer small businesses the ability to reach and engage relevant audiences at a low or no cost.
Cost-effective marketing
Compared to traditional advertising channels, influencer marketing can be cost-effective, especially if the influencers are open to in-kind or barter exchanges instead of money. This is especially beneficial for smaller businesses that have a tight budget. Most times, nano influencers are open to cash-free barter trades, where companies offer them products or services in exchange for a sponsored social media post.
Establish social proof
Influencers are typically perceived as more "human" than other conventional kinds of advertising, such as out-of-home billboards or print ads. This is because they have built a personal brand and are viewed as individuals with passions, beliefs, and life experiences, whom their followers can resonate with. As a result, they establish a human connection with their audience with content that is typically more relatable and honest e.g. content that is uniquely suited to the audience’s tastes and aesthetics.
Tangible results
The impact of Influencer marketing campaigns can be immediate, as the metrics used to measure the effectiveness of the campaign are usually more tangible - promo code redemptions, clicks, likes, comments, views, etc. This could benefit small businesses looking to make a noticeable impact in a shorter time frame, as consumers are more likely to engage with their favourite content creators.
Content creation support
Influencers these days are often skilled in a variety of professions, including videography, photography, video editing, content creation, emceeing, acting, etc. A tip that we always advise small businesses today is to work with these influencers to create content, and then repurpose the content on their social channels or promote it as an ad. This is especially useful for small businesses that may require creative or content support. An example of a brand that uses this leverage very well is Skin Inc., where they work with influencers to promote the new Hydrofacial device (refer to below).
Source: Skin Inc’s Instagram Account
Influencer marketing can be an excellent option here if you need help with how to market your goods and services more inventively. They have increasingly become popular given some of their distinct voices, styles, and their ability to connect with their audience.
Who Are the Right Influencers for Small Businesses and Startups?
The success of influencer marketing initiatives for small businesses hinges on selecting the appropriate influencers, especially if budgets are lean. Use the techniques listed below to identify the ideal influencers for your upcoming marketing campaign.
Decide your target audience
You must first identify your target audience to locate the appropriate influencers. Consider variables like location, age, gender, interests, and values. The effectiveness of influencer marketing programmes also depends on choosing influencers whose audience fits the target demographic and whose content style complements the brand.
Determine your budget
The ideal budget for your influencer marketing campaign will vary depending on the influencers you work with, the industry, and your objectives. Budgets for larger, more intricate campaigns could be higher.
Your campaign objective
Before launching an influencer marketing campaign, companies should explicitly outline their goals to make sure that the campaign is in line with their overall marketing and business objectives. Is your campaign looking to raise brand awareness, increase sales, or generate leads?
Determine possible influencers
Seek key opinion leaders (KOLs) with a sizable following in your niche who correspond with your target market. For instance, you can search influencer marketplaces or social media sites to locate possible influencers. Many influencer marketing companies can assist you in finding the ideal KOL and streamlining the campaign's implementation.
Some businesses also leverage the network and expertise of marketing agencies as they tend to be able to better curate and select influencers based on their network and experiences working with influencers. Their capacity to strategically pair influencers with companies is improved by this iterative and data-driven strategy, which ultimately helps influencer marketing campaigns have a higher chance of succeeding.
Determine possible influencers
Consider factors such as content quality, authenticity, engagement rate, and following count. Thus, the crucial aspect is to keep an eye on nano- and micro-influencers, which are becoming more significant. To determine if KOLs have a loyal following that will react well to sponsored material, look at the shares, likes, and comments. One tip we always tell businesses to look out for is to check out the profiles of the followers and whether there are signs of influencers who buy followers. An example would be a lot of followers, but little engagement on their post.
How to determine the success of your influencer marketing campaign?
Success metrics startups measure for engaged influencers, by channel
At the end of the day, the right influencers for small businesses and startups should authentically connect with your target audience, share your brand values, meet your campaign objective and contribute to the overall success of your marketing efforts.
Resources & Tools to Enhance Your Influencer Marketing Campaign
These resources and tools can assist small businesses in gauging the effectiveness of their influencer marketing campaigns:
Google Analytics: A free web analytics tool that can be used to monitor user activity and website traffic.
Social network analytics tools: You may utilise the built-in analytics tools on most social media sites, including Facebook, Instagram, and Twitter, to monitor the success of your influencer marketing efforts.
Surveys and Input: To find out whether your influencer marketing campaigns connect with your target demographic, you can also ask for customer feedback. For instance, a straightforward call-to-action (CTA) can also boost interaction.
Sales information: Monitor your sales data to ascertain whether influencer marketing efforts generate sales and conversions.
While influencer marketing can offer numerous benefits, it's crucial for small businesses and startups to carefully select influencers whose values align with their brand and target audience.
Building authentic and mutually beneficial relationships with influencers is key to a successful influencer marketing strategy. The tools you choose will depend on your campaign goals, budget, and the platforms you intend to use.