Why Influencer Marketing Works - An Analysis

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Hey there friends,

We both just got back from INBOUND 2023, and the only thing we’ve had time to do is be jealous of the people who were at SaaStr. The grass is always greener and all that.

If you've been anywhere within earshot of the two of us, you'll know that we don’t think influencer marketing is just a buzzword—it's the high school prom king, the belle of the ball, the... well, you get the idea.

It's big. It’s only going to get bigger. But why? Why are we so fascinated with influencers?

The truth is our brains are wired that way. Our brains crave connection, simplicity, and trust. And influencer marketing delivers all three, wrapped up in a pretty digital bow.

In this issue, we're diving head-first into the pool of influencer marketing psychology.

Reason #1: We’re looking for new connections

Remember having a crush on that celebrity when you were younger? We know you do. That's called a parasocial relationship.

The internet has made it possible for us to connect with people all over the world, from our favorite celebrities to complete strangers.

These connections might be digital, but they can often feel very real. That's where the concept of parasocial relationships comes in.

These are defined as one-sided relationships where one person invests emotional energy, interest, and time in another person or persona who's completely unaware of their existence.

Think of it like having a celebrity crush, except the celebrity has no idea you exist. Sounds a little sad when you put it that way, doesn't it? But these relationships can have a big impact on our behavior, including our buying habits.

Reason #2: We’re always looking for a quick, easy way to understand

If you look at advertisements from the turn of the 20th century, they’re packed with what a product does, how it does it, and why they’re better than everyone else. For an entire page.

Nowadays, that’d never fly. Instead, advertisers and marketers have started to align brands more closely with people and lifestyles, wants, and needs.

Before we dig in more, we need to explain something called the Dunbar number.

After spending some time researching apes, British anthropologist Robin Dunbar proposed that humans can only comfortably maintain about 150 stable relationships. At least, that’s the theory because we’ve both been known to forget a birthday or seventeen.

We’re marketers, not biologists, so the best we can explain it is our brains have a limit to the number of meaningful relationships we can manage. With social media, we can reach 150 new people in the span of a few minutes, so our software (literal technology) has quickly outpaced our hardware (literal brains).

In the world of social media, influencers help us navigate this overwhelming landscape by acting as trusted sources of information.

“There's a big market for unbiased reviews and recommendations,” one founder told us. “With the rise of communities, people would rather go to trusted sources for advice on purchases. I mean, I’d definitely talk to you guys or the larger marketing community before I do my Googling.”

Reason #3: People are lazy.

We're all a little lazy sometimes, right? When it comes to making decisions, we often want quick answers without having to think too hard.

This is where influencers come in. They do all the hard work for us, testing out products, giving reviews, and generally being the guinea pigs for our consumer needs.

According to a study by the ODM group, 74% of consumers rely on their social networks to make purchasing decisions. It might seem a bit overblown but it makes sense when you think about it. We're more likely to trust someone we feel connected to, even if that connection is through a screen.

Marketers don’t often agree on things. Scrolling through LinkedIn you can find a claim that email is dead, a proclamation that email is the only channel —and some of these might be from the same person.

The reason we bring this up is that everyone’s ears perked up when the topic of influencer marketing came up.

B2B brands need to get on board sooner rather than later.

Now, this isn't just your run-of-the-mill B2C strategy. Influencer marketing is taking the B2B world by storm too.

After dozens of conversations with people covering the gamut of marketing, all of them said one thing: Influencer marketing is the next big thing in B2B. “More companies will start building their own influencers internally over the next five years,” predicts one leader “This could even extend to founders becoming influencers themselves. The benefits of having a subject matter expert who is active within the community and interacts with buyers daily are immense.”

Companies are building their own influencers internally, founders are becoming influencers themselves, and roles such as advisors or content creators are emerging as vital pieces of the influencer puzzle.

So, if you're wondering whether to dip your toes into the influencer marketing pool, our advice is: dive right in! It's not just about promoting a product; it's about building relationships, creating a sense of community, and tapping into our basic human needs.

Influencers are the new word-of-mouth in B2B. And they're here to stay.

Until next time,

Nick

P.S. Don't forget to share this newsletter with anyone who might find it helpful. Sharing is caring, after all!