How Product Requests Fit into Your Influencer Marketing Budget
Product Requests are a feature in Carro that allows influencers to shop your store and request items that they would like to review and feature on their social profiles. Product requests are a great way of getting your influencer marketing campaigns off the ground, as well as ensuring that influencers only receive the products that they truly want to review and enjoy. But how do you determine how many requests to approve or deny?
Influencer marketing campaigns can generate up to 5-10x ROI, depending on the influencer and the campaign. Your overall goals for your influencer marketing program should determine how many influencers you will work with.
Revenue goal / Estimated ROI = budget for influencer marketing campaigns
Your initial budget can also be set on a per project basis. Once you have executed an entire campaign with a particular influencer, you can determine the result of the campaign and then budget for future campaigns accordingly.
When considering the costs of product requests, remember to include the cost of the product (cost to the business, not retail value) and include any shipping fees in your estimate. This total number is what you will deduct from your budget.
Overall budget – cost of products = remaining budget
The remaining budget can be spent on influencer sponsorship fees, additional supplies requested by the influencer to create their content, or boosting influencer’s posts on Instagram (a new feature).
Customer Lifetime Value
Another factor to consider when determining budget and metrics for your influencer marketing is the lifetime value of customers acquired through influencer marketing. A customer’s lifetime value is the average total sales for each new customer. This can be found by tracking your customers through the conversion process, as well as any future purchases they place with your brand. Your influencer marketing efforts should take into account the lifetime value of each new customer.
For example, your average order value may be $60, but the lifetime value of the typical customer could be significanltly higher if they make an average of three purchases from your brand. In this scenario, you would make $180 over the life of that customer, potentially justifying a higher marketing cost in order to achieve the first purchase.
Capitalizing on the lifetime value of the customer will require that you have a way of continuing the marketing after the customer has made their first purchase, such as email marketing, retargeting ads, or social ads for returning customers.
Product Requests should be considered part of your marketing budget when considering influencer marketing. When calculating the return of influencer marketing, product requests are a justified cost to help you reach your revenue goals!