Given the changing nature of the retail landscape and the ever-evolving customers, the world of retailing has become intensely competitive in nature. Customers now are highly dependent on social media reviews about products and brands before making any purchase. They tend to turn to their trusted online network who provide a firsthand perspective of a product or provide recommendations on it. This trend has not gone unnoticed by retail brands who are constantly looking out for innovative ways to boost sales and increase its customer base.
In recent years, one of those innovative ways has been influencer marketing which retail brands are adopting to reach out to a large audience base without incurring large cost. However, before delving into the topic of role of influencers in retailing, let us understand what is influencer marketing and how different is it from advocate marketing or word-of-mouth marketing.
In simple terms, an influencer marketing is a form of social media marketing where brands pay an influencer (mostly an individual) to promote their product. Such influencers have a large and dedicated social following (Instagram, Twitter, Meta, YouTube etc.,) and are viewed as experts in their field. Although influencer marketing and word-of-mouth marketing are often used interchangeably, there is a slight difference between the two. While the former leverages their influence on their followers and supporters, the latter emphasizes more on person-to-person communication rather than online campaigns.
Given that the global pandemic as accelerated the rate of online shift among customers, the role of influencers has gathered steam and are being channelized for the benefit of retailers. Here are a few ways influencers can influence customer behaviour and transform sales.
In retail business, influencer marketing can open a world of new opportunities. Their contribution to bringing changes to the world of marketing cannot be ignored and hence, retailers need to collaborate with them to make their brand presence more prominent. However, the trick lies in identifying the right kind of influencers that suits your purpose and leveraging their engagement in the right possible way.