Through extensive experience with countless campaigns, we've found that applying the Pareto Principle is one of the most effective strategies for our clients. The Pareto Principle suggests that 20% of the effort produces 80% of the results. In a business context, this often means that 80% of sales or revenue comes from just 20% of clients or customers.
In influencer marketing (IM), 20% of the influencers you work with typically generate around 80% of your revenue. These are the influencers you should build long-term relationships with and involve in all your campaigns. To identify this top 20%, we recommend the following steps:
1) Influencer Testing Campaigns
Start by collaborating with new influencers and tracking their performance. The goal is to see if they can drive their audience to make purchases. Keep costs low by requesting a single post and avoid large budgets until you understand their impact.
2) Analyze Influencer Data
Identify the top 20% of performers and invite them to join your brand ambassador program, establishing long-term partnerships.
3) Repeat and Scale
Gradually expand your group of successful brand ambassadors. Think of influencer testing campaigns as the growth engine of your IM program. These top performers should be invited to all seasonal campaigns, often achieving a return on ad spend (ROAS) of 10X or higher.
In summary, your IM program should focus on two main areas:
1) Testing: Initial collaborations to identify influencers who can effectively influence their audience.
2) Relationship Management & Affiliate Marketing: Engaging top-performing influencers in seasonal campaigns, where the highest returns are often realized, with ROAS commonly exceeding 20X.