How to leverage Influencer Marketing to Drive Business Success

Gone are the days when influence was solely reserved for celebrities. Now, anyone with a creative spark and dedication can build a loyal following. This not only empowers individuals to share their passions and expertise, but also allows brands to partner with these niche influencers, reaching highly targeted audiences and fostering deeper connections with potential customers.

The surge of social media platforms like Youtube, Instagram and Tiktok has democratized influence like never before. These platforms provide fertile ground for aspiring influencers to cultivate engaged communities with targeted content. The impact on communities is undeniable, as influencers can serve as relatable role models, spark social movements and advocate for important causes. Brands have recognized this potential and have shifted their focus towards personalized advertising, aiming to provide a more tailored customer experience by displaying relevant ads.

Consequently, numerous companies are now collaborating with influencers to endorse their products, leveraging the influencers' strong connections with their audience. “The symbiotic relationship between influencer and product has made influencer marketing a crucial component of large companies' branding strategies. Indian influencer market has seen a significant growth over the years with increase in access to mobile devices, internet and large number of platforms”, says the FranCast report 2024-25 (Whitepaper on Franchise Forecast).

“Influencer marketing is expected to grow by 25% in 2024, reaching INR 2,344 crore and to INR 3,375 crore by 2026, growing at 18% CAGR”, says the ‘State of influencer marketing in India’ report 2023 by EY. It further adds that as 50% of the time spent on mobile phones is on social media platforms, marketers need to consider influencer marketing as part of their overall communication strategy.”

MAKING INFLUENCER MARKETING WORK FOR BUSINESS AND FRANCHISE SUCCESS

Influencers are usually classified in five different ways—Nano, Micro, Medium, Macro and Mega—depending on how many followers they have. Nano influencers have fewer than 10,000 followers, Micro influencers have from 10,000 to 50,000, Medium influencers have from 50,000 to 100,000, Macro influencers have more than 500,000 and Mega influencers have over one million followers.

Influencers play a pivotal role in attracting new demographics, amplifying brand visibility, and solidifying the reputation of their businesses. “Recent trends underscore the effectiveness of influencer-generated content, with 60% of marketers acknowledging its superiority over traditional branded posts in terms of engagement and effectiveness. The effectiveness of influencer marketing stems from influencers' perceived expertise within their specific niches. Through authentic engagement and deep knowledge, influencers cultivate trust among their audiences, significantly influencing purchasing decisions”, says the FranCast report 2024-25.

“Influencer marketing has become essential for Food and Beverage (F&B) brands to expand their reach and effectively engage with their target audience. By leveraging influencers' loyal followings and authentic content creation, F&B brands can build trust, increase brand awareness, and boost sales. Influencers are ideal partners for promoting F&B products due to their ability to resonate with audiences”, says Vaibhav Kaushish, COO, Stellar Concepts. Stellar Concepts Pvt. Ltd. is a leading retail F&B company in India, managing brands such as Chili's Grill & Bar, Cinnabon, Auntie Anne's, and It's Just Wings under its associate, Trimex Foods Pvt. Ltd., and PAUL under Cogent Hospitality Pvt. Ltd.

Vaibhav adds, “When we launched our brand PAUL in Mumbai, the success was phenomenal. Within a week, nearly everyone in the city knew about our opening. We saw long queues, with people willing to wait over three hours just to try our food. The launch was incredibly well-received, and we are grateful to our partners for their successful collaboration. We received a wide range of feedback, some of which provided valuable insights for improvement, while others were expressions of pure appreciation.”

LEVERAGING INFLUENCER MARKETING FOR EFFECTIVE FRANCHISE EXPANSION

In the dynamic landscape of modern business, influencers have emerged as powerful brand ambassadors, leveraging their substantial online followings to drive consumer behaviour and market trends. Businesses extending their brands through franchising can engage influencers that can capitalize on their established reputation and engage a broader audience, thereby enhancing their market presence and profitability.

Best practices for leveraging influencer marketing effectively, according to the FranCast report 2024-25 are:

1. Leverage Micro-Influencers (with 5,000 to 10,000 followers): They can drive engagement and sales for your franchise. They have deeply invested fan bases and an engagement rate up to 60% higher than celebrities and mega-influencers. Even nano-influencers, with a few hundred to a couple of thousand followers, can be beneficial, especially for niche communities. For example, if your franchise sells food items, offer these influencers gift cards to try and post about your products on Instagram or YouTube.
2. Focus on authenticity, ensure that sponsored content feels genuine: Encourage influencers to use their authentic voice and share personal stories about your products or services. Authenticity is crucial as 61% of consumers prefer influencers who create engaging, authentic content. Influencers showing real-life use and benefits of your offerings will resonate more with their audience.
3. Engage Multiple Influencers Simultaneously: It typically takes multiple interactions for a consumer to convert. Collaborate with multiple influencers to increase your franchise’s visibility and reach. This approach can offer various perspectives on your products and services, enhancing overall engagement and appeal.
4. Choose Niche Experts: Select influencers who are experts in your franchise’s niche. Their authority will lend credibility to their recommendations. For instance, a beauty vlogger is ideal for promoting an aesthetics clinic, while a fitness influencer could effectively endorse a health and wellness franchise.
5. Set Clear Goals: Define your campaign goals before engaging influencers. Whether aiming to boost brand awareness, change brand perception, or increase sales in a new location, align your goals with the influencer’s audience and expertise. For instance, to attract new customers in a specific area, collaborate with a well-known local influencer who hasn’t previously mentioned your brand.
6. Establish Guidelines and Communicate Clearly: Create a detailed document outlining your franchise’s background, campaign goals, key messages, content requirements, and success metrics. Include specifics like required hashtags, links, discount codes, and guidelines on what to avoid. Clear communication helps ensure that influencers understand your expectations and deliver content that aligns with your brand.
7. Maintain Open Communication: Keep the lines of communication open after sending the brief. Encourage influencers to ask questions and provide feedback. This collaborative approach ensures that both parties benefit and that the influencer has a positive experience with your brand.
8. Measure ROI: Track the success of your influencer campaigns using metrics like impressions, views, reach, engagement, conversions, sales generated, and website traffic from influencer links. Utilize influencer marketing software to simplify ROI tracking and ensure your efforts are yielding results.
   
   By implementing these practices, influencers can effectively use franchising to expand their brand and reach new heights in their business.