Influencer Marketing–Final nail in coffin for traditional marketing?
Voice of the Brand or Customers?
Social media marketing has brought about a quantum shift in the way marketing is done. It has moved the focus from “The Voice of the Brand” to “The Voice of the Customer”. The balance of power in the purchase funnel is now more skewed towards the customer & his peers, slowly changing the way brands market themselves. Earlier, the entire focus used to be about roping in a brand ambassador and roll out your story. Today, your story is okay but what really matters is the story that’s going on between the millions of bubbles on the social cloud. Add to that, the “bigger bubbles”- the social media influencers, and you are in for a different game altogether.
Word-of-mouth results in 200% sales in comparison to paid advertising
Yes, the above statistic is true, according to a McKinsey study. To delve deeper, they also result in 37% higher retention rate of customers1. Riding this trend of word-of-mouth/recommendation marketing, a form of marketing has gained prominence – Influencer Marketing.
What is Influencer Marketing?
The term “Influencer” in itself can be defined in 10 ways by 10 different people. And, each can be vindicated. A 2014 study by Augure2revealed the following:
- 79 percent say influencers are able to mobilize opinions and create reactions
- 73 percent say influencers have large online communities focused on specific topics
- 62 percent say influencers have a significant share of voice on a given subject