Question

When choosing an influencer to promote your product, what factors should you take into account? Suggest what you think would be a good fit for a product or service and an influencer and why you think it would be a good fit:

Why does acquisition cost have an impact on CLV?

Select each item below that is a CX touchpoint:

		Search Engine Visits
		Retailer visits
		App visits
		Brand visits - on the brand site or a third-party site like Amazon
		Review site The Federal Trade Commission says influencers must disclose when they are getting paid to promote products True False

Answer 1

Factors taken into Consideration while selecting an Influencer:

1. REACH

When marketers consider influencers for campaigns, one of the first things they want to know is how many people an influencer’s content reaches. Follower, subscriber, and view counts provide a simple metric for judging popularity and impact, but it’s worth noting that social media hacks like bots and pods mean that this simple metric isn’t always best for determining influencer value.

2. ENGAGEMENT

More in-depth than simple reach metrics, engagement metrics provide insight into how many people are interacting with influencer content. Likes, comments, and shares on content help marketers determine how active an audience is and how it reacts to different types of content. Marketers are looking for audiences that are engaged and invested in the content and the community surrounding it.

3. BRAND LIFT

Influencer marketing provides an opportunity for brands to communicate with audiences through the voices of trusted creators, but some influencers may also provide a significant boost in brand awareness and perception among audiences. Smaller influencers (like micro-influencers) provide less in the way of brand lift because while they reach their own audiences effectively, visibility and reach are limited.

4. PLATFORM

Influencers create and post content on a number of different platforms, and each platform has unique advantages and disadvantages for reaching audiences. Instagram is huge for influencers — in fact, influencer marketing on Instagram alone is a $1 billion industry. The platform is growing and also has robust discovery tools to help users find new content. Facebook has a larger user base but isn’t as well-known for influencer content. That said, Facebook Video is growing and breakout stars like Laura Clery prove that the platform can be highly effective.

5. REPUTATION

Like all other public figures, influencers have reputations and images that they project to their audiences and to the world. Whether they’re experts, tastemakers, or creative wunderkinds, influencers’ reputations can work favorably for brands, provided they’re positive and aligned with brand ideals. Cool influencers lend a degree of their audience-pleasing coolness to brands they work with, and expert influencers can help position brand partners as entities to be trusted.

6. CONTENT

There are dozens of different types of influencers, and they all approach the work of content creation differently. For marketing purposes, brands will want to look closely at an influencer’s body of work to identify key factors like visual and audio quality, substance, tone, category, and consistency. Marketers should look for influencers whose content is high quality, consistent, focused, and in line with brand goals and image.

7. VOICE

The influencer landscape is crowded, particularly in major categories like fashion, beauty and makeup, and travel, but the best influencers set themselves apart with a singular voice. Brands should look carefully at how influencers talk about people, places, and things, as well as the way that they talk to their audiences. Voice and personality go hand-in-hand, and brands want to partner with the very best.

8. AUDIENCE

Influencer marketing is most effective when it’s focused on specific goals, and part of achieving those goals is a thorough understanding of who, exactly, a campaign is meant to reach. Influencers are experts in their audiences, and partnering with them to communicate with those audiences about products, services, experiences, and brands that are relevant to them helps make messaging more effective.

A kitchen tool and gadget brand like OXO would do well to partner with food bloggers, YouTubers, and Instagrammers, and could even get more specific by partnering with vegetarian and vegan influencers to promote a new product that slices vegetables. Likewise, mommy bloggers are a natural fit for stroller or toy brands, but brands could dig deeper and find mommy bloggers who have toddlers to promote a toy intended for children 1-3 years old.

9. BRAND SAFETY

More attention than ever is focused on brand safety in the wake of YouTube’s ad controversy. Brands discovered that ads were being run during and alongside objectionable videos that contained hate speech and questionable conduct. The appearance of brand ads in conjunction with this content gave the impression that brands condoned the video’s contents. More than 250 advertisers froze their campaigns on YouTube, and while many have resumed following YouTube’s revised ad policies, the concern over brand safety remains.

In working with influencers who create content around their personalities, opinions, and day-to-day lives, brands must be aware of any past or potential impropriety that might leave them embroiled in controversy by extension.

10. PRICE & BUDGET

Budget is key in any marketing campaign, but with influencer marketing, it’s going to dictate who marketers can work with, what kind of integration they can afford, and how many influencers they can use. There are no standardized rates in the influencer marketing industry, but marketers should use their goals, influencer metrics, and campaign structure to determine how much they’re willing to pay and choose influencers accordingly.

11. AFFINITY FOR BRAND

Many influencers — from those who cover makeup to those who make YouTube videos about building robots — already talk about the products that they use frequently. Marketers should research whether or not there are any influencers who are already talking about their products organically. Working with those influencers to become a part of their content and audience messaging is a move that feels genuine and authentic to audiences.

It isn’t just influencers who speak positively about a brand’s products that might make for a beneficial partnership, though. Even influencers who talk about a product’s flaws or cover a competitor’s products may be prime candidates. Partnering with these influencers allows brands to become part of a focused, relevant conversation.

12. POTENTIAL FOR FUTURE PARTNERSHIPS

Many campaigns may have brands partnering with influencers for a single post or series of posts, but it’s worth considering whether or not there’s a potential for an ongoing relationship with the influencer. Many brands already do this in the form of “brand ambassadors” — influencers who regularly promote a brand and its products on social media or in brand advertising.

Having influencers that reach the right audience, create quality content, and work well with the brand is a valuable asset that saves time in formulating future campaigns.

IMPACT OF ACQUISITION COSTS IN CLV :

Customer acquisition cost is a business metric that has really been gaining a lot of popularity recently. This is the cost that is associated with actually convincing a customer to buy a product or service.

The cost in question is incurred by the organization or business in order to convince the client that they should work with them.

The customer acquisition cost comprises of the product cost and the cost involved in marketing, research, and accessibility.

This metric is very important as it helps a company calculate how important a customer is to it. It also helps it to calculate the resulting ROI of an acquisition.

It is important for a business to know each customer valuation so they know how much of its resources they should spend on a customer so as to be profitable.

These allocated resources are what we refer to as cost per customer acquisition. The customer acquisition is often expressed as a ratio where you divide the sum of customer acquisition cost (CAC) by the number of new customers that have been acquired by a business resulting from their customer acquisition efforts.

CX TOUCH POINT :

Search Engine Visits - Can be a Touch Point if there are more Search Engine Visits by the Customers. Promotions through Search Engine is an effective Tool.

Retailer visits - Can be a Touch Point if customers rush in Retail Stores are more. The no. of customers visited to Retail store is taken as a measure

App visits - No. of Customer orders Received  through our own APP can be a critical Touch Point

Brand visits - on the brand site or a third-party site like Amazon - No.of Orders Received through Brand sites can be a touch point

Review site - Review site can't be a touch point as we can't receive orders through it,but only feedbacks will be received

FEDERAL TRADE COMMISSION :

TRUE

As Per Disclosure 101, Influencers are required to Disclose when they are getting paid to promote products.

IT SAYS AS FOLLOWS,

If you endorse a product through social media, your endorsement message should make it obvious when you have a relationship (“material connection”) with the brand. A “material connection” to the brand includes a personal, family, or employment relationship or a financial relationship – such as the brand paying you or giving you free or discounted products or services.

Telling your followers about these kinds of relationships is important because it helps keep your recommendations honest and truthful, and it allows people to weigh the value of your endorsements.

As an influencer, it’s your responsibility to make these disclosures, to be familiar with the Endorsement Guides, and to comply with laws against deceptive ads. Don’t rely on others to do it for you.