As brands invest more heavily in influencer marketing, the pressure on you to deliver measurable results is mounting. Decision-makers—the execs—are no longer swayed by vanity metrics. They want data that directly ties your influencer efforts to financial performance and tangible business impact.

Top-of-the-funnel metrics like likes, impressions, and follower growth? Sure, they still matter, but they’re just the low-hanging fruit. Leadership, from CMOs to VPs of Marketing and up, often views these as superficial because they aren’t always linked to substantial business outcomes. Relying too much on these can make it challenging to secure budget or advocate for your program with the C-suite.

So, what do execs really care about?

Here are six key metrics that showcase the financial impact of your influencer marketing initiatives and are sure to impress.

Sales Conversion Rate

Conversion rate measures the percentage of users who complete a desired action after engaging with a marketing effort. These actions might include signing up for a newsletter, filling out a form, downloading content, or—most importantly—making a purchase.

Tracking and measuring sales conversions is invaluable because it directly demonstrates the financial impact of marketing efforts, offering clear insights into how well these efforts translate into actual revenue.

By closely monitoring sales conversions, execs can assess the effectiveness of influencer campaigns, optimize strategies, and make data-driven decisions that maximize ROI.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) measures the expense of acquiring each new customer through an influencer marketing campaign. Why is this metric so highly valued?

Marketing leaders want clear evidence of the effectiveness of their influencer marketing budgets, and CAC provides just that. By quantifying the cost of acquiring each new customer, CAC acts as a tangible gauge for evaluating ROI.

It directly shows whether the customer acquisition cost aligns with or exceeds the revenue generated per customer. This metric enables meaningful comparisons between influencer marketing and other acquisition channels, providing insights into where budget adjustments could drive the highest impact and help maximize return on investment.

A low CAC indicates that current influencer partnerships are generating cost-effective results worth scaling. In contrast, a high CAC may prompt a reassessment of influencer partnerships, targeting strategies, or even the overall campaign approach.

Cost Per Engagement (CPE)

Cost Per Engagement (CPE) is a vital metric for evaluating the cost-effectiveness of influencer marketing campaigns in terms of engagement. It measures the average cost of each interaction generated by an influencer’s post, encompassing likes, comments, shares, and clicks.

This metric is valuable because it offers insight into the efficiency of influencer marketing initiatives. A lower CPE indicates that a campaign is generating significant engagement relative to its costs, underscoring the effectiveness of influencer partnerships.

Average Order Value (AOV)

Average Order Value (AOV) measures the average amount customers spend per transaction, making it a crucial metric that connects influencer marketing initiatives to revenue generation. By analyzing AOV, execs can evaluate the effectiveness of their influencer campaigns in driving higher-value purchases.

AOV also serves as a performance evaluation tool, helping to assess the success of current influencer partnerships. A higher AOV indicates that a campaign is effectively attracting customers willing to spend more, thereby justifying the investment in influencer marketing.

Moreover, AOV aids in informed budget allocation decisions. If specific influencers or campaigns consistently yield a higher AOV, investments can be strategically focused in those areas to maximize revenue. Additionally, AOV provides insights into customer spending habits and preferences, enabling execs to tailor influencer marketing strategies accordingly.

Return on Ad Spend (ROAS)

Return on Advertising Spend (ROAS) measures the gross revenue generated for every dollar spent on advertising. This metric is valuable because it establishes a clear and direct correlation between advertising expenditures and revenue outcomes.

By highlighting the revenue impact of influencer campaigns, ROAS not only justifies current ad spending but also informs strategic budget allocation for future initiatives.

Furthermore, understanding ROAS enables performance benchmarking across various campaigns and channels. By comparing ROAS figures, executives can pinpoint which strategies yield the highest returns, allowing them to optimize their marketing mix accordingly.

Campaign ROI

Return on Investment (ROI) measures a campaign’s profitability by considering all associated costs, including advertising, production, influencer fees and more. While both ROI and Return on Ad Spend (ROAS) evaluate campaign performance in financial terms, they serve distinct purposes.

ROI offers a comprehensive view of profitability by factoring in various costs, such as production and operational expenses. In contrast, ROAS focuses on the gross revenue generated for each dollar spent on advertising. This distinction makes ROI a more holistic metric for assessing the overall effectiveness of marketing campaigns.

Often referred to as the “golden metric,” ROI quantifies the profitability of influencer marketing campaigns and informs strategic decision-making. Marketing executives can leverage ROI to identify which campaigns or channels yield the best financial returns, aiding in effective resource allocation and investment prioritization. A high ROI indicates successful initiatives that can be scaled or replicated, while a low ROI highlights areas needing improvement or reevaluation.

Ultimately, ROI allows for informed, data-driven decisions that align with financial objectives, empowering execs to drive growth and profitability. It's the "golden metric" because it provides a clear and quantifiable measure of success!

That's a wrap for this week!

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Find the perfect influencers—then message them directly

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Sick of copying and pasting contact information between platforms?

Wish you could personalize outreach messages for multiple influencers at once?

Meet Superstar — a powerful Chrome extension that allows you to discover, analyze, and shortlist influencers across all major social media platforms. Unlock valuable insights and streamline your outreach efforts while managing your campaigns effortlessly.

Sign up for a 30-day free trial today!

Interesting reads

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