Dec 31, 2017
Brands and marketers invest heavily in creating good content as it fuels all marketing initiatives. It is often said that eventually everything com...
May 27, 2016
by Prarthana Varma
With social media taking over the world, there has been a paradigm shift in the way that consumers make their purchases. Consumers are increasingly looking at fellow consumers or their favourite celebrities before indulging in any purchases. Consumers assign great importance to a recommendation coming from a trustworthy fellow consumer. Everyday consumers are at par with celebrities, industry experts and bloggers when it comes to impacting a consumer’s decision.
Digital revolution has given birth to the online form of word-of-mouth marketing i.e. Influencer Marketing. Influencer Marketing helps to shift a consumer's decision needle in the favour of the brand by serving as a voice of authority. A study conducted by McKinsey illustrates the fact thatinfluencer marketing generates more than twice the sales that paid advertising does, along with a higher customer retention rate.
Merely indulging in Influencer Marketing is not sufficient, you need a metrics to measure whether it’s actually working for you or not. While conducting a case study on Hokey Pokey, Kumar and Mirchandani came up with what’s known as a Customer Influence Effect, the Stickiness Effect and the Customer Value Index as a metrics to measure the success of influencer marketing on social media.
It measures the amount of influence a person has on other people while engaging in a relevant conversation about a particular subject. The influence exerted is relative to that of the other consumers.
It attaches individual influencers to a certain category of keywords, depending on the association of the words with one another along with other words used by people around the world. This aids in gauging the potential size of the target market and the kind of related subjects the influencers talk about.
It studies the influence that an individual influencer has on other current and prospective customers. This is computed as a combination of the value that the influencer brings to the brand through his purchases and a proportion of the Customer Lifetime Value of his influencee’s purchases due to his influence.