Influencer marketing is the best way to generate sales, says new study

Oct 09, 2023
Influencer marketing is the best way to generate sales, says new study
Influencer marketing was reported as being the most effective marketing channel for generating sales, according to a survey of small and medium beauty and hair business owners.
Influencer marketing – paying an influencer to promote a product or service to their followers – has grown with the progression of social media.

To understand how powerful influencer marketing can be, Dojo, a payments solution company, surveyed a sample of 197 small and medium beauty and hair business owners and key decision makers.

The survey asked which marketing strategies they use, as well as which strategies they found to be most effective in sales generation.

According to the 197 businesses surveyed, of those who do marketing, influencer marketing was the most effective marketing channel for generating sales.

In fact, businesses that used influencer marketing found it more effective than traditional social media marketing like organic social posts on Instagram.

A fifth of the businesses surveyed currently use influencer marketing as a strategy, according to the data.

However, a quarter of those surveyed noted that they would want support in running successful influencer campaigns.

The survey revealed TikTok was the second-best platform for generating sales, with 11% of the business reporting it as being the most effective.

With the introduction of TikTok shop, this social platform provides a way for commerce sites to reach new customers and generate sales.

Find out how salons and spas can use TikTok to grow their business.

Instagram is also a firm favourite, taking the third spot.

This social media platform makes it easy for brands to create “shoppable” posts that can direct customers straight to their website.

Responses when respondents were asked which of the following marketing strategies were most effective at generating sales for their business:

1. Influencer marketing - 24%
2. TikTok - 11%
3. Instagram - 8%
=4. Twitter (X) - 6%
=4. Google Analytics/Google Adwords - 6%
=4. Physical mailouts/direct mail - 6%
=5. SEO - 5%
=5. Leaflets - 5%
=5. Offers via email - 5%
=5. Local periodicals - 5%
6. National periodicals - 4%

Influencer marketing has become a staple for brands in almost every sector – and it’s not just the big brands that can make the most of this marketing tactic.

There are various types of influencers in the digital world, making this channel more accessible for smaller brands. This includes:

Nano influencers (1K–10K followers)
Micro influencers (10K–100K followers)
Macro influencers (100K–1M followers)
Mega or celebrity influencers (1M+ followers)
Darcy Jessop, influencer marketing and campaigns expert, said, “Influencer marketing allows businesses to tap into an already highly engaged and loyal audience that you might not already have yourself, putting a recognisable and trusted face at the forefront of your brand.

“This builds brand awareness and when paired with the right influencer brief, encourages them to buy into your brand too.”

She also went on to discuss the future of influencer marketing for SMEs: “With the beauty influencer industry being a flooded market, it’s more important than ever that brands align with influencers that hold their target audience and create briefs for content that feel organic but cut through the noise.

“Followers are more eagle-eyed than ever to spot a disingenuous brand collaboration, so working with an influencer on a long-term basis can often be more beneficial, especially when looking to build brand awareness.

“This can be even more important in the service sector, as influencers are gifted treatments in exchange for a post, what feels like daily.

“Creating lasting relationships will turn followers into clients.”

Jessop revealed her advice for businesses looking to engage in this marketing activity: “When it comes to starting influencer marketing, the most important thing is to pick influencers that align with your target audience.

“When reaching out for rates, ensure you ask for a demographic breakdown - there’s no point in spending money using an influencer that has the wrong audience for your brand!”

She added, “For beauty salons, using micro-influencers to start your influencer marketing journey can be a great way to test different niches (from hair to beauty, all the way to comedy as a wild card option) without breaking the bank.

“Micro influencers often have a highly engaged loyal following already, so growing with them over time can be a great way to break into the industry and make an impact, without feeling like your collaboration is a drop in the ocean on their feeds.”