So, why Influencer Marketing?
Success in the home & lifestyle industry is highly reliant on word-of-mouth and consumer trends. KOL / influencer marketing provides the capability to spread the word using your consumers' role models. Part of the reason could be attributed to the high cost of housing related products & services, thus consumers do not want to risk making a wrong purchase. In comparison to traditional ads, there will be a perceived increase in value, reliability of your product or services, which will boost the probability of a potential consumer making a purchase. Hence, the strength of key opinion leaders / influencers in the home & lifestyle industry is extremely high and would be able to provide the word of mouth effect that drives your business brand/sales. Putting yourself in a customers' shoes, were you to choose between a product or service positively experienced by a previous customer, and an ad you just saw, which would you choose?
How to run successful KOL & Influencer marketing campaigns in the Home & Lifestyle industry
1. Understanding your customers
To fully capitalise on the targeting capability of KOL / influencer marketing, you must first understand the demographics of your customers/patrons. Even if you do not have advanced analytics tools, that's not an issue. Simply take regular glances at your patrons or for online shops, use basic information provided by your respective e-commerce enabler, and take note of these few details (non-exhaustive list, please feel free to take in more details if you can):
- Age group
- Current housing type
- Job Seniority (as a gauge to income level)
- Average number of products bought per checkout (if applicable)
- Average sale amount per checkout (if applicable)
Using these few details, it should be sufficient to understand your consumers. When you select a KOL / influencer, get one with a demographic suitable for you. Take for example, if your smart home products typically have high number of products bought per checkout, it could indicate your products tend to be bought as a set or purchased by value shoppers who enjoy your range of products. In this case, you should engage a KOL / influencer to promote your products as a set, or as a full range. This way, it allows you to gain outreach to consumers with a higher likelihood of purchasing multiple products from your retail shop or online shop. Hence, analysis of your consumers is key in the home & lifestyle industry in order to maximise the effectiveness of your campaigns. If need be, engage experts to help you in this aspect as it also will help your business in the long run.
2. Diversify & strategize your campaign portfolio
Many businesses think higher followers/web traffic equate to higher conversion. Generally speaking, that is not wrong. However, depending on the nature of your business, it may not be the most efficient use of marketing budgets as it may not achieve the best ROI for you. The cost of hiring a KOL / influencer with high followers/web traffic is certainly higher. If you were to do proper targeting and selection, you can achieve the same results with a KOL / influencer with lower followers/web traffic. With the same budget, you can engage 2 others with similar profiles to further increase your results.
To aid your understanding, let's have an example. Engaging an instagram influencer with 3m followers and 1% conversion - will bring you 30,000 new customers. Engaging a targeted instagram influencer with 300k and 10% conversion - will bring you 30,000 new customers as well, essentially the same result, but with lower cost. Hence, it is highly recommended to diversify your campaign portfolio by engaging multiple KOL / influencers instead of blowing your entire budget on 1 single big influencer.
3. Value-based KOL / Influencer Marketing Campaigns
It is worth noting that compared to traditional ads, costs of a failed campaign is significantly higher. Take for example, a facebook ad, it can be stopped at any time, should you decide the ad is not doing well. Unfortunately, for an influencer marketing campaign, you drop money upfront, which cannot be stopped/paused even if campaign results aren't going well. Fortunately, modern technologies have enabled Marzze to create a free-to-use platform that allows you to find KOL / influencers and run hybrid performance based KOL / influencer marketing campaigns. It is the world's first of its kind world's 1st automated campaign management application enabling a multi-tier fee structure that can be customised according to your business needs:
Total Fees = Token Fee + [pay-per-sale / pay-per-lead / pay-per-action / pay-per-engagement]
With this model, it makes more financial sense for you to engage a KOL / influencer. On top of avoiding high upfront costs, you will instead pay based on actual value delivered to you (i.e. % of sales value or no. of leads generated). You are more assured that your marketing budget is being spent on delivering actual results.
Making a decision
Key opinion leader & influencer marketing is arguably one of the most powerful modern marketing channels right now. There are already many companies who have grown from a small business to a $100million dollar company within a few years, simply by capitalising on KOL / influencer marketing. It is the perfect opportunity for businesses to capitalise on the proven strengths of KOL / influencer marketing. If you're new to KOL / influencer marketing or would like to improve your KOL / influencer marketing strategy, we're specialists who can help you adopt KOL / influencer marketing successfully, together with lifetime access to our platform you can use as a SaaS tool managing and automating all your future fixed price or performance based KOL / influencer campaigns.