In a world where marketing is becoming more and more personalized, the rise of influencer marketing isn't surprising. What is surprising though, is how much more effective it is than traditional methods of marketing. Before we dive into the nitty-gritty of how this particular type of marketing works, or what's the science behind influencer Marketing, let's take a look at the numbers, shall we?
A study published in the McKinsey quarterly demonstrates that:
- 20-50% of all purchasing decisions are influenced by word-of-mouth.
- Influencer opinions are more than twice as effective as regular paid marketing.
- Customers acquired through influencers and word-of-mouth are 37% more likely to stick around.
To ignore these numbers and pretend that influencer marketing is just a fad would be ignorant, to say the least. In the past, most people would use advertisements they saw on television or print media to make decisions about their purchasing. Today, it's much easier to learn what other people, just like yourself, think about a particular company's product or service. When it comes down to it, who are you more likely to trust - a company which wants to sell you the product in question, or an individual who is just offering their opinion as a consumer?
Today's consumers are smarter and aren't easily swayed by "OMG this is the best product ever!" gimmicks. Therefore, they're more open to the opinions of people that have established themselves as influencers in their target segment. Brands can use this relationship to identify key personalities who can help them further their message. Influencer marketing, at its core, involves working with these personalities to create promotional campaigns which are personalized and come across as authentic.
There are several strategic nuances to the process of influencer marketing. The folks at Simplilearn have created a comprehensive infographic which lays out the entire process, examines the distinct aspects and offers data-backed reasons why you should consider it for your own brand.