Marketing for Retailers: Using Influencers Effectively

If you need a plumber, how do you find one? Do you search on Google or call a friend for a recommendation? Most likely, you’d call a friend because an experienced and trusted opinion is invaluable. This is the same in retail marketing—word-of-mouth has always been a powerful tool. Now, virtual influencers are the new word-of-mouth, and their online communities play a significant role in the success of retail businesses.

Bring Their Audience to You

Influencers are like the popular kids in school—they have the best things, the coolest experiences, and people care about their opinions. Most importantly, you want your business to be part of their world. To achieve that, your brand needs to be relevant and reliable so influencers speak positively about you and encourage their followers to engage with your business. Influencers are a new kind of trust circle in today’s connected world, with growing communities that genuinely respect their opinions.

Gain Trust Through Association

Influencers hold power in giving your brand a valuable thumbs-up. They offer a referral that embodies tried-and-tested experience, providing potential customers with a sense of familiarity with your product—even if they’ve never used it before. The goal is not just for people to know about your brand but to trust it, and influencers can help build that trust through their endorsement.

Trust Creates Authenticity

Influencers balance commerce and authenticity carefully. Their blogs and social media are their livelihood, so if followers perceive them as inauthentic or “bought,” they lose credibility. It’s crucial that influencers genuinely value the products they promote, and that your brand fits naturally with theirs. This alignment helps maintain the authenticity that resonates with their followers.

Where Do You Start?

Step 1: Identify the Right Influencer
It’s not just about the number of followers but about interaction. Some influencers may have millions of followers, but many could be passive. You want an influencer whose followers are engaged and take action. When approaching an influencer, ask for a demographic breakdown and engagement metrics. Geography is important—your customers need to be close to your store. Also, consider the influencer’s image, as it should align with your brand’s identity. Their followers are likely the kind of customers you want to attract.

Step 2: Establish the Terms
Influencers often make a living through these collaborations, so there will likely be costs involved. If your marketing budget is limited, offer something of value, such as a free meal at your restaurant, a weekend stay at your B&B, or beauty treatments at your salon. Think about what will benefit both the influencer and their followers, such as giveaways or informative interviews.

Step 3: Treat It Like a Business
Top influencers run their platforms like businesses, and you should approach any agreement professionally. Be clear about what you expect in return for the collaboration—whether it's specific Instagram posts, Facebook updates, or something else—and ensure the influencer delivers on their commitments.

Step 4: Invest in the Opportunity
Influencer marketing isn’t always cheap, but it’s worth the investment. Allocate part of your advertising budget to this strategy, just as you would for any other promotional activity. Influencer marketing is becoming the new form of PR, and it should be considered a legitimate component of your overall retail marketing budget. As Ryan Cohen, CMO of Merchant Capital, points out, "Influencer marketing moves quickly, and our product is one of the few funding channels that can keep up."

Step 5: Build a Relationship
If the collaboration is successful, keep the relationship going. Followers can sense authentic connections, and consistent appearances of your brand on an influencer’s page provide meaningful brand awareness. This can generate traffic and engagement for both your business and the influencer.

Join the ‘Now’ of Retail Marketing

With 92% of consumers relying on referrals from people they know, influencer marketing is a powerful tool for retailers. So get online, build relationships, and as soon as you find the right influencer to promote your business, hit "Like" and go.

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