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Influencer commerce – THE new method for monetizing your sales funnel

Take off with influencer commerce
Image: © Prostock-studio/Adobe Stock
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Influencer commerce: a new take on Influencer Marketing

Influencer commerce is a sub-genre of social commerce – and a new method of selling products in cooperation with an influencer. Until now, collaboration with influencers went like this: the advertising partner drew attention to products as part of their media work and directed their community to a brand’s sales pages or online shop. And a purchase was made. Influencer commerce, in the strictest sense, delivers a completely new approach: influencers only sell the brand’s products directly from their own social media channels.

More sales using influencer commerce

But is it worth monetizing a sales funnel using influencers? Absolutely! Influencers can definitely boost sales. As an example, the “Social Media Atlas 2021” study conducted by the Faktenkontor consulting agency and the market research institute Toluna show that…

24 percent
of the online users aged over 16 who were surveyed have already purchased at least one product as a result of a buy recommendation by a YouTube influencer.
1 out of 5
bought at least one product because it was recommended by an Instagrammer or other influencer.

Influencer commerce offers a major plus point over traditional methods of influencer marketing. Whenever influencers sell products on their own channels, rather than fans being directed to external offers, the community stays in its trusted bubble. This saves one step of the sales funnel. The click onto external links or closed landing pages is eliminated, which reduces the complexity of the sales funnel. It also means that users always only interact with their role models, and not with the brands. The high level of trust that they place in their idols therefore remains for the entire sales process. Fans trust their role models more than brands. Influencers therefore have a great impact on buying decisions, which offers major potential to use them to directly increase sales in the funnel.

What does influencer commerce look like in practice?

For influencer commerce, what’s needed more than anything is new functionality on social media platforms – especially a check-out feature, which allows influencers to directly process product sales via the platform. A lot is happening in this regard at the moment. Many platform providers are planning extensive commerce functions in the near future or already have them under test or launched in some countries.

This includes the new “Instagram from Creators” tool. It allows influencers to integrate product offers from partner brands into their posts. Fans can order the product by directly clicking on the Instagram post. One other option is the new “Shop now” feature that TikTok is currently testing. It lets influencers embed a call to action for a product purchase directly into their videos. Pinterest’s new “Shopping Spotlights” function allows influencers to put together collections pins to advertised products and present them to their community. Users can then buy individual products directly on the app.

Download our free influencer commerce checklist now

Influencer commerce takes advertising partnerships with influencers to a new level and deepens the relationship between brands and social media celebs. However, integrating it into your sales funnel requires some real finesse. Marketing managers should know some important ground rules for influencer commerce. Read our brand-new checklist to learn more. You can download it for free here:

Download the checklist for free
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