The ROI of Influencer Loyalty Programs: Numbers That Matter

If you are a manufacturer of any product (or if you’re a professional in the manufacturing industry), you must know the power of Influencers in your respective industry. To build strong relationships with them, you must run influencer loyalty programs.

In this context, influencers are skilled professionals who work directly with end-users and whose recommendations carry significant weight in purchasing decisions.

Different industries have different influencers. And manufacturers in different industries must not only run respective influencer rewards programs but also calculate the ROI of loyalty programs to determine their efficacy.

In this blog post, we will explore how influencer loyalty programs work across different industries, how to measure the ROI of influencer loyalty programs, tools that power influencer loyalty programs, and the best practices to generate maximum ROI from influencer loyalty programs. Read on and thank us later.

Influencer Loyalty Programs in Different Industries

As we have already discussed, different industries have different influencers. And running the right influencer loyalty programs or influencer rewards programs is key to maximizing customer loyalty ROI. Here are examples of influencer loyalty programs across major industries.

1. Wood and furniture industry

Carpenters are the main influencers in the wood and furniture industry. When homeowners, contractors, and different types of commercial property owners install plywood, laminates, medium density fiberboards, they usually depend on their carpenters’ advice. Since carpenters are trusted for their technical expertise and hands-on experience, their recommendations strongly influence which brand and material is finally purchased. 

2. Paint industry

Painters are the main influencers in the paint industry. Homeowners, contractors, and commercial property developers often rely on painters’ expertise when selecting paint brands, types, and finishes. This makes painters critical decision-makers in driving brand preference and repeat sales.

3. Electrical and electronics industry

Let’s take a guess, who are the main influencers in the electrical and electronics industry? That’s right! Electricians are. Whether it’s wiring, switches, circuit breakers, lighting fixtures, or even home appliances like air conditioners and water heaters, customers often rely on electricians’ recommendations before making a purchase. Their expertise and trusted advice make them pivotal in driving brand choice at the point of installation.

4. Ceramics, plumbing, and fittings industry

Plumbers are the primary influencers in the ceramics, plumbing, and fittings industry. Homeowners, builders, and commercial property developers often consult plumbers when selecting faucets, pipes, tiles, sanitaryware, and other fittings. Because plumbers are directly involved in installation and maintenance, their recommendations carry significant weight and often determine the brand and type of product purchased.

5. Automotive industry

Mechanics and service center professionals are the main influencers in the automotive industry. Vehicle owners often rely on their trusted mechanics when choosing lubricants, tyres, batteries, spare parts, or even car accessories. Since mechanics are responsible for the performance and safety of vehicles, their recommendations significantly impact brand preference and purchasing decisions.

How to Measure the ROI of Influencer Loyalty Programs

One of the biggest concerns manufacturers face is measuring ROI of loyalty programs. Unlike traditional advertising, influencer loyalty programs directly tie to sales at the ground level. To measure the ROI effectively, manufacturers must go beyond surface-level metrics. Here’s how they can measure the ROI of influencer loyalty programs:

They can also track the increase in market share in regions where active influencer loyalty campaigns are running. This not only proves sales uplift but also helps in measuring ROI of loyalty programs with clear, quantifiable data.

2. Engagement metrics

Engagement is the heartbeat of influencer loyalty programs. Manufacturers should measure:

• Number of influencers enrolled in the influencer rewards program.
• Frequency of product recommendations logged by carpenters, painters, plumbers, or mechanics.
• Redemption rates of loyalty points within the app-based loyalty program or loyalty software for business.

High engagement means strong influencer loyalty, which directly improves both loyalty program ROI and customer loyalty ROI.

3. Cost vs. benefit analysis

The simplest way of measuring ROI of loyalty programs is to compare costs and benefits:

• Total rewards distributed vs. incremental revenue generated from influencer-driven sales.
• Reduction in churn rate of influencers switching to competitor brands.
• Long-term impact on customer loyalty ROI, as end customers stay loyal to products recommended by trusted professionals.

This approach gives a realistic picture of the ROI of loyalty programs in any industry.

4. Influencer marketing ROI formula

A precise way to calculate the financial returns of your influencer loyalty program is through the formula:

ROI = (Net Incremental Profit ÷ Program Investment) × 100

This formula makes it easier for manufacturers and loyalty program companies in India to quantify influencer marketing ROI and compare it against other initiatives.

Example: If a paint company invests Rs. 50 lakh in an influencer loyalty program and sees an incremental profit of Rs. two crore from painter-driven sales, the ROI is 300%.

Another formula by which ROI for influencer loyalty programs could be calculated is total revenue minus the expenses divided by the overall costs associated with its implementation.

ROI for influencer loyalty program =  (Influencer loyalty program’s total revenue – expenses) / implementation costs

If the result is a positive number, it means that the program is generating a positive return on investment.

ROI of Influencer Loyalty Programs in Different Sectors

Different influencer loyalty programs in different sectors yield varied ROI. In some sectors, the influencer marketing ROI is higher than others. Let’s take a look at the ROI of influencer loyalty programs in different sectors.

1. The ROI of loyalty programs in wood and furniture industry

Carpenter loyalty programs in the wood and furniture sector have proved to be highly effective. As carpenters are primary decision influencers for a majority of end users, their opinions and recommendations are vital. In many cases, they purchase the raw materials such as plywood, laminates, medium density fibreboards, and more such wood products themselves.

As per a published data, a contemporary furniture company registered a 30% increase in online sales during active influencer promotion periods. That’s impressive! That translates to a high ROI on influencer loyalty programs.

2. Painter loyalty program ROI

When a painter recommends a specific brand, they’re not just suggesting a product. They’re leveraging years of experience and technical knowledge to guide customer decisions. That’s the reason many customers depend on them for selecting paints and coatings.

As per a study, 48% of customers depend on painters for selecting the paint categories. This statistic alone demonstrates the immense influence painters have over market dynamics. This obviously means painter loyalty programs can achieve high ROI, without any doubt.

3. Plumber loyalty program ROI

Plumbers operate in a unique position where their recommendations affect both immediate repairs and long-term installations. This gives them multiple touchpoints for influence.

As per one latest research, 54% of plumbing firms use social media platforms to engage customers and 67% of them succeed in generating high quality leads through targeted campaigns. If manufacturers of ceramic wares, tiles, plumbing equipment and fixtures run plumbing loyalty programs, they can be assured of a positive ROI.

4. Electrician loyalty program ROI

The electrical and electronics industry is an extremely competitive sector and electricians play a huge role in influencing customer decisions. As per a study, 57% of electricians and contractors choose distributors based on loyalty rewards.

With so many varieties of electrical products in the market, customers often trust electricians to recommend the best option for safety, reliability, and performance. This makes influencer loyalty programs in this sector especially powerful. 

Tools That Power Influencer Loyalty Programs

The right technology stack can immensely help in running effective influencer loyalty programs and generating a high ROI from them. The good news is, manufacturers across industries (from paints and wood to plumbing and electricals) can use a wide array of specialized tools such as loyalty software for business to manage influencer relationships effectively. Here are some of those:

1. App-based loyalty programs

As the name suggests, app-based loyalty programs run via mobile apps. They make it extremely easy to track influencer activities such as installations, referrals, purchases, and more. By leveraging app-based loyalty programs, manufacturers can help influencers earn points instantly and redeem rewards digitally. They can create tier-based reward systems to encourage influencers to enhance their performance and climb higher tiers. Many loyalty program companies in India and abroad design app-based loyalty programs for all types of manufacturers.

2. CRM and data analytics tools

Customer relationship management (CRM) software integrated with loyalty software for business helps track influencer engagement levels and performance. This ensures businesses can not only strengthen influencer loyalty but also optimize influencer marketing ROI by personalizing offers and recommendations.

3. Digital wallets and payment gateways

For influencer rewards to feel meaningful, redemption must be seamless. Digital wallets and gateways integrated with loyalty platforms enable instant payouts, cashback, or gift cards. This boosts both customer loyalty ROI and influencer trust, creating a direct impact on the ROI of loyalty programs.

4. Gamification tools

Gamification within influencer loyalty programs adds excitement and competition. By offering badges, levels, leaderboards, and exclusive rewards, manufacturers encourage higher engagement from influencers. Such tools also make influencer rewards programs more transparent, driving stronger results and measurable influencer marketing ROI.

5. ROI tracking dashboards

To ensure success, measuring ROI of loyalty programs is essential. Dashboards built into loyalty program companies in India solutions help track sales uplift, redemption patterns, and influencer-driven conversions. That provides a clear picture of both influencer marketing ROI and customer loyalty ROI.

Best Practices to Generate Maximum ROI from Your Influencer Loyalty Programs

Getting the most out of influencer loyalty programs requires more than just offering rewards. Manufacturers need to strategically plan, execute, and optimize their influencer rewards programs while keeping a sharp eye on loyalty program ROI. By leveraging the right technology and data, companies can significantly improve influencer loyalty and influencer marketing ROI.

1. Set the objective of your influencer loyalty programs

First thing first, set a clear objective of your influencer loyalty programs. What do you want to achieve from your influencer loyalty program? Do you want to enhance sales? Do you intend to strengthen influencers’ loyalty? Do you want to boost revenue through your influencers? Having a well-defined goal allows you to align incentives, communication, and technology.

2. Know your KPIs and keep an eye on the most important ones

Key performance indicators (KPIs) are extremely helpful for measuring ROI of loyalty programs. Some important KPIs are sales (conversions), referrals, influencer engagement levels, redemption rates, program participation growth, and overall customer loyalty ROI.

3. Set aside a reasonable budget

When it comes to influencer loyalty programs, allocating a clear and reasonable budget is critical. A well-defined budget ensures that your influencer rewards program remains sustainable while delivering measurable results. Brands should factor in reward costs, communication expenses, and loyalty software for business fees. This clarity helps in measuring ROI of loyalty programs effectively.

4. Handpick the right influencers

Not all influencers are equal. Even in the same industry, one influencer can be extremely different from another. Let’s say, a carpenter or a painter or a plumber that resides in a metro city is so different from the one who stays in a small town or a village. Similarly, an influencer who has years of experience and a robust track record is different from the one who is new to the trade. By handpicking the right influencers, brands strengthen influencer loyalty and maximize customer loyalty ROI. This step is also crucial for achieving strong influencer marketing ROI.

5. Handpick the right influencer loyalty software for business

When it comes to running successful influencer loyalty programs, choosing the right loyalty software for business can mean the difference between success and failure. The ideal platform should support app-based loyalty programs, allow easy onboarding for carpenters, painters, plumbers, or mechanics, and provide real-time tracking of rewards.

Taking Everything Into Consideration,

Influencers shape what people buy. Carpenters, painters, plumbers, electricians, and mechanics guide customers every day. When manufacturers run smart influencer loyalty programs, they turn these professionals into brand champions.

A clear goal. The right influencer rewards program. Reliable loyalty software for business. Careful tracking of sales, engagement, and customer loyalty ROI. These steps turn effort into profit.

At LoyaltyXpert, we have helped many manufacturing organizations run a wide range of influencer loyalty programs. Contact us today and book a free demo to see how we can help transform your influencer loyalty strategy.