Affected by COVID-19, e-commerce ushered in explosive growth. At the same time, more and more e-commerce sellers started to know that it gets more difficult to get high-return traffics from E-commerce platforms like Amazon, AliExpress and etc. This leads some merchants to build their own e-commerce websites with the help of Shopify, Wix, and some other website building companies. When we mentioned brand website business, influencer marketing is essential for every webmaster, because it can bring a huge amount of brand awareness to the enterprises, and it is the most cost-effective in the past five years. In this article, we are going to learn how to do influencer marketing promotion and make your plan.
1.Decompose Your Plan
You need to learn to think of your plan with a marketing funnel, this will help you extrapolate something back from a known target. For example, you are an e-commerce merchant, your boss wants you to gain 50k USD sales, how do you decompose this target with the marketing funnel? Continue reading and you will get the results.
Sales are at the bottom of the marketing funnel, so we have to work backwards based on previous data or industry big data. Here are some formulas you need to use below:
- Impressions = Budget/CPM*1000
- Clicks = Impressions*CTR
- Conversions = Clicks*Conversion Rate
- Sales = Conversions * Order size
Next, input the number to the formulas above, we will calculate some results later. As we know that, your goal is to get $50k GMV, just assume that your conversion rate is 3%, CTR is 1%, target geo is United States, and CPM is $10. Let’s see the calculations below:
- Conversions = 50,000/50=1000
- Clicks = 1000/3%=33,333
- Impressions = 33,333/1%=3333,300
- Budget = 3333,300*10/1000=33,333
This is my target decomposition above, can you use the data and report to your boss? It’s impossible, because some problems ignored by you: What’s the profit rate of your products? What’s your ROI? Any answers to me? Take it easy, let’ continue our calculation.
If your profit rate is 20%, here are the answers you will get:
- Profit of Sales = 50,000*20%=10,000
- ROI = 10,000/33,000 = 0.3
- Return of your invest = 10,000-33,333=23,333
$23,333 loss! Your promotion has lost the meaning of doing in the process of plan. But I need to tell you that, this is what separates the junior marketer from the senior marketer. Because senior marketers will continue to think about where to optimize to get this done. Don’t worry, just keep thinking!
In fact, this is the same as the principle of doing business, increase revenue and reduce expenditure can often lead the business to profitability, influencer marketing is the same, too.
But I have a question: Which data indicators are related to revenue and cost?
Indicators related to revenue:
- CTR: It is affected by the matching degree between your product and influencers, if you sell shoes online, your CTR must be low when you work with technology influencers.
- Conversion Rate: It depends on whether the path and experience of the promotion product landing page to conversion is ideal or not. In fact, it has nothing to do with the marketing personnel, because the marketers can only influence the position of the landing page. However, as a professional marketer, you should also know the characteristics of the product promotion, such as the difference between it and the products on the market. At the same time, you should not promote the products that are already on the market, otherwise you will enter the dead cycle of price war, which will affect the conversion rate.
Indicators related to cost:
- CPM: Cost Per Mile, different influencers has different CPM. According the big data on a well-known influencer search engine show that.
CPM is affected by the staff cost of the team behind influencers, quotation psychology of the influencers, video production cycle, influencers’ social media richness, and etc. Besides, it is also related to the bargaining abilities of influencer marketers.
We can get the conclusion after said so much, cost saving is the most effective ways to optimize the results, it means that you have to get no less than 3333,300 impressions and spend no more than $33,333. Your ability of bargain and data analysis can help you do that, if you forget how to find the right influencer by data analysis, I recommend you read this article.
I believe that you have learned how to start an influencer marketing promotion project and make your plan. Next article I will share you some important tips you need to know when you are doing a influencer marketing promotion project. Thanks for reading.