As the CEO of Arrow, a premium menswear brand especially curated for working professionals, I believe that in today’s digital age, traditional advertising methods are no longer sufficient to capture the attention of a discerning audience. With consumers inundated by ads, many messages are ignored. This is where ‘influencer marketing’ steps in, offering a more organic and trusted form of communication.
We have strategically leveraged this trend by collaborating with both micro and macro-influencers. Micro-influencers, those with 10,000 to 100,000 followers, offer an incredibly high engagement rate, often surpassing that of larger influencers. Their followers are typically niche audiences who value the opinions and recommendations of these influencers, making them ideal for targeted campaigns. For start-ups and small brands, the challenge of budget constraints can be addressed by partnering with micro-influencers. On the other hand, macro-influencers, with their broader reach, are invaluable for increasing brand awareness on a larger scale. The substantial costs associated with these influencers are justified by the extensive reach and significant impact these campaigns can achieve.
The importance of selecting the right influencers
Regardless of the size of the brand, the success of an influencer marketing campaign hinges on selecting the right influencers. We begin our influencer partnerships by defining clear objectives and identifying our target audience. We then meticulously research potential influencers on platforms where our audience is most active, focusing on those who regularly post content related to our industry.
We work with a diverse range of influencers to effectively reach our target demographics and promote our latest products. Recently, we’ve collaborated with prominent creators like Mohak Narang (3.5 M followers on Instagram), Vipul Juneja (809 K followers), Prabhat Choudhary (1.2 M followers), Karan Jotwani (296 K followers) and Vyasan Nair (247 K followers).
Our selection process goes beyond just looking at follower count. We prioritise influencers with high engagement rates, as this is often a better indicator of their ability to influence their audience. We also evaluate the quality and authenticity of their content to ensure it aligns seamlessly with our brand values. Professionalism and reliability are key; we review their communication style and past brand partnerships to check their suitability.
We focus primarily on top metropolitan areas, particularly Delhi and Mumbai, to maximise our outreach and engagement.
The products we promote through these influencers vary based on our new season launches or specific store openings.
Once we select the right influencers, we provide a detailed brief outlining our objectives and key messages, such as promoting a collection or new store. We value the creative input of influencers, as they know their audience best and encourage them to add their unique touch to the content. This approach ensures our campaigns align with our brand’s goals while authentically engaging their audience.
Cost-effectiveness and ROI
Normally, the costs associated with influencer collaborations are less than those of traditional media and the results are far more precise.
When measuring the ROI of influencer marketing, I believe it’s crucial to look beyond just immediate sales and focus on a broader set of metrics that reflect both short-term gains and long-term brand value.
First and foremost, engagement metrics are essential. I analyse the number of likes, comments, shares and saves that influencer posts generate. These interactions give me direct insights into how well the audience is connecting with the content, reflecting both the quality of the influencer’s engagement with their followers and the relevance of the brand message.
Another important aspect, brand awareness, is also crucial. I measure it through reach and impressions to see how many people view the content and track brand mentions before and after the campaign to gauge shifts in visibility. The aim is to not just to reach a larger audience but also to effectively connect with our target group and increase brand conversations and searches.
Additionally, I also value improvements in brand perception and sentiments amongst our target demographic. A successful influencer campaign not only enhances the brand’s image but also builds stronger connections with our audience. To me, ROI in influencer marketing includes both the tangible returns and the more subtle, long-term benefits of increased brand affinity and trust.
Launched in India in 1993, Arrow is a prestigious American brand known for its classic and stylish apparel, focusing primarily on men’s clothing like shirts, suits and casualwear. The brand with over 1 million Instagram followers and 200 exclusive stores all over India, is well known for its bold, timeless and elegant style.
How to calculate Influencer Marketing ROI
To calculate the Return on Investment (ROI) for an influencer marketing campaign, you’ll need the following inputs:
Inputs required
Total campaign cost ($): The total expenses for the campaign, including influencer fees, product giveaways and production costs.
Audience Reached: The total number of people who viewed the influencer’s content during the campaign.
Engagement rate (%): The percentage of users who engaged with the content (e.g., visiting a landing page or clicking for a product giveaway) out of the total audience reached.
Conversion rate (%): The percentage of users who completed a desired action (e.g., signing up for a product or making a purchase) out of the total audience reached.
Average order value ($): The average revenue generated per completed sale.
How to calculate ROI
Calculate Leads: Audience Reached x Engagement Rate
Calculate Conversions: Leads x Conversion Rate
Calculate Revenue Generated: Conversions x Average Order Value
Calculate ROI(%): (Revenue Generated – Total Campaign Cost) / Total Campaign Cost
Practical example
Total Campaign Cost: $ 10,000
Audience Reached: 100,000
Engagement Rate: 5%
Conversion Rate: 10%
Average Order Value: $ 120
Calculating ROI:
Leads: 100,000 x 5% = 5,000
Conversions: 5,000 x 10% = 500
Total Revenue: 500 x $ 120 =
$ 60,000
ROI: ($ 60,000 – $ 10,000) /
$ 10,000 = 5
In this example, the Influencer ROI Calculator shows an ROI of 5, meaning that for every dollar spent on the campaign, $ 5 was earned in revenue. A negative ROI indicates that each dollar spent on the campaign generated less than one dollar in return.
