Strategies Most Marketers Misunderstood In Influencer Marketing

Influencer Marketing has become one of the most powerful tools in a marketing teams’ toolkits today. It is not expected to disappear anytime soon with most of the majority brands using this effective strategy. Research shows that is probably going to continue throughout the years, why? People no longer trust the brands. A lot of people are no longer influenced by these traditional marketing techniques and they are now influenced by those people whom they trust and respect. On the other hand, there are still numerous brands who still misunderstand what is “influencer marketing,” thus making it an effective tool. Truth be told, 74% of purchases are made by word-of-mouth recommendations, and influencer marketing is one of the most effective ways to drive word-of-mouth sales. It is no wonder that marketers are increasingly embracing influencer branding and marketing strategies to achieve their business’ goals and objectives.This article outlines the most common influencer marketing mistakes to steer clear in order to be successful and avoid overlooked cost.Fail to understand the audienceYour audience is your critic, if they want your product, they will be your customers. You will never be able to create a long-term and effective influencer marketing strategy if you don’t know your audience/customer. Marketers who have not yet flourished a genuine marketing personality are suggested to place their programs on hold until they understand who are their customers and what are their interests in order to achieve and interaction with the brand. It is to be noted that marketers need to understand purchasing habits, demographic information, pinpoints and psychographic information in order to create a marketing persona and conventionally, all of these statistics can be gathered through customers’ reviews.

Using Influencer Marketing in the wrong influencers/channelYour marketing would not work unless you are working with the right influencer for your campaign. Influencer marketing is not identically effective across all channel, niche, and the target audience. If you are promoting a beauty product, much recommended working with YouTube Influencers since it is much effective in videos than a plain picture of your product and a post on Facebook, Instagram or Twitter.Expecting results in a short period of timeIf you have just started doing the influencer marketing, you cannot just expect a good result in just one snap. In some cases, for a powerful influencer, marketing campaigns can produce results overnight. But mostly and especially for brands and companies that are not using E-commerce, Influencer Marketing should take time to effect. Trust and patience are advisable. It is to be noted that effective influencer campaigns help the improvement of brand awareness. When a candidate is aware of your brand, they will still need to undergo the process of your marketing funnel, the consideration and decision making stages before performing the purchase. So yes, it takes time to get the results.Forgot to use the AnalyticsUsing analytics is one of the most accurate ways to get updated and determine whether your influencer marketing is effective or sat to say, ineffective. Monitoring and measuring the performance of your campaign is required in all types of platforms, from there, you will be able to know which part of your marketing campaign needs to be improved. You can find lots of platforms online that can help you measure your campaign insights and progress.Failure in conveying expectations with your influencersUpon working with influencers, it is much important to construct your expectations clearly. You should give your influencers a summary that includes the goals and objectives of your campaign. Collecting and including the marketing personal you have collected will help your influencers to become more successful. You may also want to include analytics information that you find valuable when marketing to the target audience.Focused on the wrong KPIsInfluencer marketing is a powerful marketing method, but everything in this world has its own limits. Marketers need to ensure that they are using influencer marketing the right way. It is advised to focus on the KPIs which fits your brand, product, and activity, don’t just focus on getting sales, start being genuine! An influencer marketing campaign designed to influence KPIs related to bottom-of-the-funnel behaviors is not generally perfect.Avoided this strategy because you failed “once”Just because you failed once in this marketing strategy doesn’t mean you should give up. Marketers don’t just quit marketing because one of their marketing campaigns was not successful. Instead of quitting, if you have failed, use that failure to improve your marketing. You must understand why did the campaign fail so that you could implement better strategies and ideas the next time you set an influencer marketing campaign. Remember: Failures are one of the challenges you will face upon entering Influencer Marketing and learning from it is the key to success.

Neglected the call to actionBefore you launch your campaign, make sure you have considered this question: Where should my audience click to take action upon engaging with my I.M. content?If you planned to drive traffic to your website using I.M, make sure to construct a webpage that will allow your visitors to utilize the next action. Importantly, make sure to test the constructed web page if it is perfectly working and responsive both on mobile and PCs. Associating the call to action with an I.M. campaign and securing that it is optimized for your target are keys to success with I.M.Chosen an inappropriate agency to manage influencer relationshipInfluencer marketing has become affected and is on top of the line. Marketing agencies are also crawling and offer I.M. services. But guess what, not all of these agencies have valuable experience with I.M. strategies, I mean they do have a bit, but not on its deep understanding. Therefore, they can not make your marketing successful. Be sure to choose an agency that has experience working with influencer marketing methods that are related to your business.Misapprehension of Influencer Marketing processIf you wanted to start influencer marketing, make sure to learn what is the process and activities involve on this strategy. This will guide you to your success.

Car Finance – What You Should Know About Dealer Finance

Car finance has become big business. A huge number of new and used car buyers in the UK are making their vehicle purchase on finance of some sort. It might be in the form of a bank loan, finance from the dealership, leasing, credit card, the trusty ‘Bank of Mum & Dad’, or myriad other forms of finance, but relatively few people actually buy a car with their own cash anymore.

A generation ago, a private car buyer with, say, £8,000 cash to spend would usually have bought a car up to the value of £8,000. Today, that same £8,000 is more likely to be used as a deposit on a car which could be worth many tens of thousands, followed by up to five years of monthly payments.

With various manufacturers and dealers claiming that anywhere between 40% and 87% of car purchases are today being made on finance of some sort, it is not surprising that there are lots of people jumping on the car finance bandwagon to profit from buyers’ desires to have the newest, flashiest car available within their monthly cashflow limits.

The appeal of financing a car is very straightforward; you can buy a car which costs a lot more than you can afford up-front, but can (hopefully) manage in small monthly chunks of cash over a period of time. The problem with car finance is that many buyers don’t realise that they usually end up paying far more than the face value of the car, and they don’t read the fine print of car finance agreements to understand the implications of what they’re signing up for.

For clarification, this author is neither pro- or anti-finance when buying a car. What you must be wary of, however, are the full implications of financing a car – not just when you buy the car, but over the full term of the finance and even afterwards. The industry is heavily regulated in the UK, but a regulator can’t make you read documents carefully or force you to make prudent car finance decisions.

Financing through the dealership

For many people, financing the car through the dealership where you are buying the car is very convenient. There are also often national offers and programs which can make financing the car through the dealer an attractive option.

This blog will focus on the two main types of car finance offered by car dealers for private car buyers: the Hire Purchase (HP) and the Personal Contract Purchase (PCP), with a brief mention of a third, the Lease Purchase (LP). Leasing contracts will be discussed in another blog coming soon.

What is a Hire Purchase?

An HP is quite like a mortgage on your house; you pay a deposit up-front and then pay the rest off over an agreed period (usually 18-60 months). Once you have made your final payment, the car is officially yours. This is the way that car finance has operated for many years, but is now starting to lose favour against the PCP option below.

There are several benefits to a Hire Purchase. It is simple to understand (deposit plus a number of fixed monthly payments), and the buyer can choose the deposit and the term (number of payments) to suit their needs. You can choose a term of up to five years (60 months), which is longer than most other finance options. You can usually cancel the agreement at any time if your circumstances change without massive penalties (although the amount owing may be more than your car is worth early on in the agreement term). Usually you will end up paying less in total with an HP than a PCP if you plan to keep the car after the finance is paid off.

The main disadvantage of an HP compared to a PCP is higher monthly payments, meaning the value of the car you can usually afford is less.

An HP is usually best for buyers who; plan to keep their cars for a long time (ie – longer than the finance term), have a large deposit, or want a simple car finance plan with no sting in the tail at the end of the agreement.

What is a Personal Contract Purchase?

A PCP is often given other names by manufacturer finance companies (eg – BMW Select, Volkswagen Solutions, Toyota Access, etc.), and is very popular but more complicated than an HP. Most new car finance offers advertised these days are PCPs, and usually a dealer will try and push you towards a PCP over an HP because it is more likely to be better for them.

Like the HP above, you pay a deposit and have monthly payments over a term. However, the monthly payments are lower and/or the term is shorter (usually a max. of 48 months), because you are not paying off the whole car. At the end of the term, there is still a large chunk of the finance unpaid. This is usually called a GMFV (Guaranteed Minimum Future Value). The car finance company guarantees that, within certain conditions, the car will be worth at least as much as the remaining finance owed. This gives you three options:

1) Give the car back. You won’t get any money back, but you won’t have to pay out the remainder. This means that you have effectively been renting the car for the whole time.

2) Pay out the remaining amount owed (the GMFV) and keep the car. Given that this amount could be many thousands of pounds, it is not usually a viable option for most people (which is why they were financing the car in the first place), which usually leads to…

3) Part-exchange the car for a new (or newer) one. The dealer will assess your car’s value and take care of the finance payout. If your car is worth more than the GMFV, you can use the difference (equity) as a deposit on your next car.

The PCP is best suited for people who want a new or near-new car and fully intend to change it at the end of the agreement (or possibly even sooner). For a private buyer, it usually works out cheaper than a lease or contract hire finance product. You are not tied into going back to the same manufacturer or dealership for your next car, as any dealer can pay out the finance for your car and conclude the agreement on your behalf. It is also good for buyers who want a more expensive car with a lower cashflow than is usually possible with an HP.

The disadvantage of a PCP is that it tends to lock you into a cycle of changing your car every few years to avoid a large payout at the end of the agreement (the GMFV). Borrowing money to pay out the GMFV and keep the car usually gives you a monthly payment that is very little cheaper than starting again on a new PCP with a new car, so it nearly always sways the owner into replacing it with another car. For this reason, manufacturers and dealers love PCPs because it keeps you coming back every 3 years rather than keeping your car for 5-10 years!

What is a Lease Purchase?

An LP is a bit of a hybrid between an HP and a PCP. You have a deposit and low monthly payments like a PCP, with a large final payment at the end of the agreement. However, unlike a PCP, this final payment (often called a balloon) is not guaranteed. This means that if your car is worth less than the amount owing and you want to sell/part-exchange it, you would have to pay out any difference (called negative equity) before even thinking about paying a deposit on your next car.

Read the fine print

What is absolutely essential for anyone buying a car on finance is to read the contract and consider it carefully before signing anything. Plenty of people make the mistake of buying a car on finance and then end up being unable to make their monthly payments. Given that your finance period may last for the next five years, it is critical that you carefully consider what may happen in your life over those next five years. Many heavily-financed sports cars have had to be returned, often with serious financial consequences for the owners, because of unexpected pregnancies!

As part of purchasing a car on finance, you should consider and discuss all of the various finance options available and make yourself aware of the pros and cons of different car finance products to ensure you are making informed decisions about your money.