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Influence or Illusion? The True ROI of Ecommerce Influencers | Salsify

Written by Lizzie Davey | 11:00 AM on August 27, 2024

The rise of social media has paved the way for social media influencers (a.k.a. industry favorites with big followings). They’ve become big players in the marketing strategies of many global brands because they unlock access to new audiences and potential new markets.

But while these partnerships can be beneficial in many ways, the true impact they have on sales and brand perception is often debated.

This post explores whether ecommerce influencers genuinely drive engagement and social media sales or if their influence is overstated. 

The Return on Investment (ROI) of Influencer Relationships

According to Influencer Marketing Hub’s “2024 Influencer Marketing Benchmark Report,” 85% of brands believe influencer marketing is an effective form of marketing — an increase from previous years. Twenty-five percent of respondents plan to spend more than 40% of their entire marketing budget on influencer campaigns this year.



But surprisingly, most brands measure the success of an influencer marketing campaign by reach, views, and impressions (54.3%) rather than conversions and sales (22.1%). Shopify found that the ROI for influencer campaigns ranges from one to three times, but it varies depending on the type of influencers you work with and the size of their audience.

So, for every dollar you spend, you can expect to break even and, at best, triple your initial outlay. The interesting thing to note is the quality of customers from influencer partnerships. Influencer Marketing Hub’s survey found that 83.8% of brands believe the quality of customers from influencer marketing campaigns is better than other marketing types.

That is, these customers are more likely to stick around and go on to become loyal brand advocates.

How To Measure the True Impact of Influencer Relationships

The true impact of ecommerce influencers doesn’t always come in the form of sales. That being said, there are ways you can track the number of sales that come from a specific influencer relationship — or, at the very least, see how that particular partnership impacts your overall marketing efforts.

Here’s how you can directly track sales made through influencers:

  • Unique tracking links: Give your influencers a unique tracking link or promo code so you can directly attribute sales to specific influencers and campaigns.
  • UTM parameters: Use Urchin Tracking Modules (UTM) parameters in your URLs to track traffic sources in your analytics tools.
  • Influencer-specific landing pages: Create dedicated product pages for each influencer campaign for more accurate tracking of traffic and conversions.
  • ROI: Calculate the ROI by comparing the cost of each influencer partnership to the revenue generated through those unique tracking links. Don’t forget to consider both direct sales and the estimated long-term value of new customers.
  • Sales and conversion rates: The biggie. Monitor sales volumes and conversion rates during and after influencer campaigns and compare these to your baseline metrics.

Remember, it’s not always about immediate sales. Consider factors like brand awareness, audience trust, and long-term customer relationships when evaluating the overall success of your influencer marketing efforts.

Here are some other ways to track the impact of your influencer partnerships:

  • Engagement metrics: Track likes, comments, shares, and saves on influencer posts.
  • Audience growth: Monitor growth on your brand’s social accounts during campaigns and assess the quality of new followers.
  • Brand mention tracking: Use social listening tools to track mentions of your brand before, during, and after campaigns.
  • Website traffic: Use Google Analytics to track traffic spikes from social sources during campaigns. Look at metrics like time spent on site and pages per session to assess the quality of traffic.

9 Strategies That Generate the Most Impact From Influencer Relationships

Looking for influencer marketing tips? Here are some ways you can make sure your influencer campaigns are working hard for you.

1. Long-Term Partnerships

Influencer Marketing Hub’s report found that 63.2% of brands work with influencers they know on an ongoing basis. Developing long-term relationships with influencers rather than running one-off campaigns builds authenticity and allows influencers to become genuine brand advocates. 

Image Source: Gymshark

Gymshark works with a handful of influencers on an ongoing basis.

2. Co-Created Product Lines

Instead of getting influencers on social media to promote your existing products, work with them to create a product line that their fans will love. This helps you leverage the influencer’s audience and expertise while creating something a bit different.

Image Source: Breda Studio

Watch brand Breda Studio partnered with influencer Taylor Lashae to create a line of watches. 

3. Work With Micro-Influencers

Micro-influencers are influencers with between 10,000 to 100,000 followers. They tend to have smaller, more niche followings, which can lead to better engagement rates and a more targeted audience reach.

@hannahjuneva glossier cloud paints are the key to my heart 🫶🏼 loving the new bronzing shades #glossier #cloudpaint #glossiercloudpaint ♬ Les Fleurs - Minnie Riperton

Video Source: Glossier

Beauty brand Glossier is renowned for working with micro-influencers. 

4. Repurpose Content Across Campaigns

Influencer campaigns are a great opportunity for collecting user-generated content (UGC) that’s authentic and relatable. Instead of sharing it once, make it work for you over and over again by repurposing it across your other channels.

For example, you might include it on your product pages, in your email marketing campaigns, or on your other social media channels.

5. Personalized Discount Codes

Offer unique discount codes to each of your chosen influencers. This makes it easier to track performance and creates a sense of exclusivity for their followers.

@l.aparts.airbnb One of the most beautiful, modern and clean airbnb on thessaloniki greece. Check our airbnb link by tapping on insta in bio (https://www.airbnb.com/slink/hCLUZHmj)#airbnb #luxuryairbnb #airbnbgreece #thessaloniki #thessalonikigreece #goviral #viralvideo #fyp #fypage #airbnbfinds #airbnbthessaloniki ♬ original sound - Ms Garn|Travel Content Creator

Video Source: Airbnb

Airbnb gives its influencers unique discount codes and links to share with their audiences. 

6. Collaborate on Educational Content

Influencers don’t always need to sell, sell, sell. They can raise awareness of your products by posting educational content, like how-to guides, tutorials, or webinars. This provides value to their audiences while showcasing your products in a non-sales-y way.

 

Video Source: Maui Moisture

Maui Moisture works with Lynn Kate, who regularly posts tutorials that include the brand’s products. 

8. Run Cross-Platform Campaigns

Don’t just stick to one platform. Find relevant influencers on all the platforms your target customers are on. For example, you might work with one influencer on Instagram, one on TikTok, and one on YouTube, or you might partner with one influencer with a strong presence on all three platforms. 

Video Source: Sephora

Sephora works with influencers on both Instagram and TikTok to reach as many people as possible. 

@sephora Look good, feel good, run good. @Danielle Burnett ♬ original sound - sephora

Video Source: Sephora

9. Promote Limited-Time Offers

Combine influencer marketing with a sense of urgency to generate sales in a short space of time. This drives immediate action and helps you see quickly whether a campaign is likely to bring in a decent ROI.

Teamwork Makes the Dream Work: Is the ROI Worth It?  

Ecommerce influencer partnerships are a great way to reach new audiences and expose your brand and products to different markets. Ensure you’re getting a good ROI from your campaigns, whether that’s an increase in traffic, more sales, or better engagement.

Working with influencers can be incredibly beneficial, but you have to do it right. Form long-standing partnerships and give each influencer a unique code that makes it easy to track sales and makes their audience feel valued.

While there’s still ongoing debate around whether the ROI of influencer campaigns is worth it, you’ll only know if you give it a go. Start small by working with micro-influencers and closely monitor your spending against your return. The ROI will vary depending on your products, the audience you want to reach, and the type of influencers you work with.