Instagram Photo @mystyledlife
In today’s highly competitive marketing environment, digital marketing has become critical to both the survival and development of many industries. With 4.66 billion active internet users (about 60% of the global population) as of January 2021, companies are eager to take advantage of the growth opportunities in the online market. Total global ad spend is estimated at $378.16 billion in 2020 alone. Among the popular strategies adopted by large businesses is micro-influencer marketing. But, with so many joining the bandwagon, does all the hype deliver the goods, i.e. increase sales of your fashion brand? Here are ways that going the micro-influencer route can be good for your ROI.
Micro-influencers significantly influence the fashion industry, which counts millennials among their top dollar customers. Any marketer who has done his homework knows this is true for a number of reasons. First, millennials are key trendsetters who see style as a critical expression of their individuality. Second, Millennials are born and raised in a digital environment and therefore will speak the language of digital technology quite well. And lastly, they outstripped their predecessors in purchasing power, with a purchasing capacity of $1.4 trillion in 2020 alone. Therefore, it would be the right decision for any strategically minded fashion company to use the services of micro-influencers to enter the millennial market with the motivation, monetary tools and digital savvy to know the difference between megabits and megabytes.
Consumers and customers want to feel empowered by their purchasing decisions. They no longer want to be dictated by the cold, impersonal fashion giants as well as the high-profile personalities they pay for. This is in contrast to the accessibility of micro-influencers with whom they can relate on a personal level. Their followers even see themselves as friends rather than fans. The unspoken but universal communication is this: “We are more alike than different. I understand you and that’s why you can trust me.” The effectiveness of this message comes in statistical findings that show that 60% of millennials are more likely to be influenced by indirect sales messages from YouTube vloggers than top movie actors or celebrities. Imagine what impact 36 million Generations (or nearly half of the 2019 population of 72 million) could have on your sales lists!
If attribution generates interest for the first layer of the funnel, it is the credibility of the micro-influencer that drives the prospect to the consideration stage, which can then lead to sales conversions. 80% of consumers made a purchase based on an influencer-marketed recommendation. Consumers trust not only what they see as an expert in their niche, but more importantly, someone who is more willing to help than sell. The two ways a micro-influencer can be an effective social proof herald are that they can have constant organic interactions and that they can have product reviews, makeup tutorials, etc.
Source: Engagement rate analysis by Influencer Marketing Hub
Any fashion company worth its value should have a clear strategy for LTM or Customer Lifetime Value. The cradle-to-grave approach allows multiple marketing touchpoints for customers.
It can be a customer’s milestones throughout their life, as well as a strategic resource for product development and innovation. Choosing a micro-influencer with fewer but more loyal followers and a higher engagement level will be more profitable than an affiliate with a wider following but limited interaction with their base. A study reveals that micro-influencers with less than 2,000 followers may have a 151% higher engagement rate than those with millions of followers. Consider the ample opportunity for your brand as your influencers accompany their followers for life.
Twitter Photo: Adam Gonon
There’s no need to dig deep into your pockets for micro-influencers that only cost a fraction of the money you’d pay for top celebrities. With a freer budget, you can tap more micro-influencers and reach more followers. Affiliate services not only cost less, but you can also pay based on performance. This means that, depending on your business model and budget, they will only get paid if they can meet the goals for which they were hired, such as generating views and clicks, securing leads and riveting actual sales.
Monitoring your digital metrics such as awareness (followers, impressions, traffic, etc.), engagement (likes, shares, comments) and conversion (trackable links, affiliate links) is essential to timely checkpoints on the cost effectiveness of your online marketing. compared to the results of their efforts. While extensive monitoring and data consolidation and processing can be challenging, few SaaS companies offer services that allow businesses to accurately measure the effectiveness of their digital strategies at affordable prices.
The right micro-influencers for your fashion brand can be an effective direct-to-consumer digital strategy to boost your business’s turnover as well as profitability. With their accessibility, they can effectively attract attention from the targeted millennial market and build and maintain a meaningful relationship with their loyal follower base – all in a highly cost-effective way. That’s why it’s so important to think carefully and consciously when choosing micro-influencers whose values align with your fashion brand and company.