POWR Blog

The Power of Influencer Marketing in Boosting E-Commerce Sales

Written by Mona Bhagwani | Nov 3, 2023 5:16:23 PM

Growing a business online is more challenging in today's ever-evolving digitalized world.

Every eCommerce business is experimenting with different tactics to increase brand awareness, grow a community, and generate high profits in the face of hundreds of competitors.

E-commerce website builders have played an important role in building e-commerce websites in the most professional ways. Business owners may or may not be tech people, but one can easily create an effective website for the business. 

Among hundreds of strategies, influencer marketing has gained significant traction. By leveraging the power of influencer marketing, building a loyal community, and growing ecommerce sales become more effortless than ever. 

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In this article, we will discuss ecommerce trends related to influencer marketing as part of your large marketing strategy. Please leave your thoughts or questions in the comments! 

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What is Influencer Marketing?

Influencer marketing is a relatively new marketing strategy segment that involves collaborating with people who have a significant and highly-engaged following on social media.

Platforms such as Instagram, YouTube, and TikTok are most notable for being used by social media influencers.

They have the ability to significantly sway the opinions and behaviors of their legions of followers, which makes it such a desirable marketing channel. 

influencer marketing is such a powerful strategy for e-commerce businesses to leverage because the reach these influencers have to promote your products or services is so impactful for increasing brand awareness and driving sales.

When executed effectively, influencer marketing can be a very valuable addition to any e-commerce marketing strategy.

Benefits of Influencer Marketing for E-Commerce

Every marketing strategy comes with uniqueness, and here are a few things that set influencer marketing apart from the crowd. 

  • Improves credibility and trust

One of the best things about influencers is that they already have a following that trusts and values their validation. 

So, their followers see it as a reliable and credible recommendation when an influencer talks about anything on their profile, be it a product or service. 

So, with an influencer talking about your product, thousands of people trust them (and you). It increases your e-commerce sales and converts their followers into your followers. 

  • Boosts visibility and reach

Since influencers have thousands of followers, collaborating with them can eventually lead to increased brand awareness, which could have taken a lifetime with traditional marketing. 

Then, you can reap all the benefits in one go if one of their posts about your brand goes viral. 

For instance, in 2021, Dunkin' Donuts, the largest coffee and donut brand, bagged huge profits by leveraging its influencer marketing strategy. 

They created a campaign under the hashtag #CharliXDunkinContest, where some of the most popular social media influencers promoted it. 

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The influencers' authentic endorsements improved the brand's visibility and engagement and surged their cold brew sales by 45%, leading to a 57% increase in app downloads. 

  • Authenticity in marketing

While people do not appreciate advertisements, they definitely look up to recommendations, especially from their favorite influencers. 

So, it does not look like an ad when an influencer talks about your product or service, but more like an endorsement that resonates better with their audience. 

That is why influencer marketing works way better than online advertisements, making it one of the most authentic forms of advertising. 

  • Engagement and interaction

Influencers are also known for keeping their audience engaged with stories and comments. By doing this, they can encourage intriguing conversations about the products they promote. 

Therefore, these active conversations and interactions can draw more visitors to your website and encourage them to look at other items. 

For example, in 2022, Inkbox, a semi-permanent tattoo company, launched a gifting campaign to improve its brand awareness and generate positive vibes for its new product launch.

So, the company signed a contract with 200 creators to promote their product. Finally, they managed to get 800K+ reach through influencer marketing in 3 months. 

Get Started with E-Commerce Influencer Marketing

Like other marketing strategies, influencer marketing also involves the same steps to build an effective marketing plan that helps boost sales, including.

  • Set clear goals

Understanding your online goals is the foundation of everything you do online. Set clear and actionable goals for your influencer marketing campaign. 

No matter what you want to accomplish, you must be clear with your goals to make the next steps straightforward. 

Be it boosting sales, increasing brand awareness, or building a loyal community. Doing so helps you identify the target influencer. 

  • Identify relevant influencers 

Depending on your objectives, niche, target audience, and brand values, you can select the ideal influencer for your marketing campaign. 

Micro-influencers can help you boost sales, while macro-influencers can assist you in building brand recognition.

So, take time and look for a person who can completely resonate with your brand and goals. 

  • Establish mutually beneficial relationships

Once you identify your ideal influencer, reach out to them with a clear proposal showing how this collaboration would benefit both of you. 

Talk, listen, and discuss with them to finalize the contract. The most crucial thing is to create a situation where both of you benefit. 

  • Track and analyze performance

You must monitor the campaign's performance daily to understand the best and worst-performing content pieces so that you can adjust them for upcoming launches.

Examine the results of your influencer marketing efforts with tracking tools and statistical data. 

Website traffic, conversion rates, and social media metrics are a few things you can use to measure the success of your campaign. 

For instance, in 2021, Make My Trip, a travel brand, launched a campaign under the hashtag #OneTripAtATime, encouraging people to take a trip for New Year's Eve at the end of 2020. 

 So, they created an IGTV video and asked the featured influencers to post it on their stories with the question, "How would they not like the upcoming years to be like 2020?" 

Soon, this campaign became a massive success in India after bagging millions of impressions and views. 

Finding the Right Influencers for E-Commerce

Picking the right influencer for your influencer marketing campaign can be a game changer. Some metrics you should always look at before finalizing the face of your campaign include:

  • Relevance 

The influencer's content should align with your brand's niche and target audience. Look for someone familiar with the types of services or products you offer. 

For instance, to sell a digital marketing course, check for social media managers or other marketers related to this domain to sell a digital marketing course. 

  • Reach and engagement

One of the crucial metrics is their social media post's reach and engagement rates. Evaluate the size of the influencer's following and the level of engagement they get. 

A higher number of followers only sometimes guarantees better results. So, focus on engagement rates as well.

  • Authenticity

Research the influencer's previous collaborations to ensure they have a history of promoting products in your niche with integrity.

If those turned out to be well-performed, then there are higher chances that yours will also be. 

Authenticity is an essential component of your brand's reputation. Choosing the wrong influencers or targeting the wrong audience can affect it. 

  • Audience demographics

A thousand followers come from different backgrounds. So, understand the demographics of the influencer's audience to ensure they match your target customer profile. 

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4 Challenges of E-Commerce Influencer Marketing

There are a few challenges you should consider before implementing influencers into your digital marketing campaigns:

  1. Fake followers and fake influencers

    There are influencers who may be buying fake followers, and you want to avoid them at all costs. There are others who may give the appearance of being a true influencer, but they are not. Ensure that you check both these things before agreeing to any terms.
  2. Measuring ROI (Return on Investment)

    Determining ROI for the campaign can be challenging. So, implement trackable links and use unique discount codes to measure the impact of the influencer's promotions. The more specific the better so you can understand intent and interest before investing further
  3. Finding the right fit

    Identifying influencers who align with your goals and brand can be time-consuming. So invest time to find the best. Be sure and select someone who's content is reflective and useful for your ideal customer
  4. Budget constraints

    Influencer marketing costs vary widely depending on an influencer's reach and popularity. For cost-effective campaigns, negotiate with influencers. 

 

Conclusion

Influencer marketing emerged as the most reputable and trustworthy marketing tactic after hundreds of tried-and-tested approaches, especially for companies aiming to increase their e-commerce sales and brand recognition.

With the power of influencers, you can easily connect with your targeted audience and create the brand of your dreams. Adopt this innovative approach to stay on top in today's competitive e-world. 

Author Bio

Mona is a content marketing specialist with over 4 years of experience who is currently working with SaaSit.in in creating engaging and effective content for various SaaS companies.

She likes researching topics related to B2B and SaaS. Email her: Mona@saasit.in