The Importance of KOL in Marketing, Don't Choose Wrong!

Business management not only requires good internal management, but also maximum marketing efforts. One way that many businesses in today's era utilize is by leveraging the services of KOLs (Key Opinion Leaders). KOLs are individuals who can have a significant impact on the wider community to purchase the products they offer.

So, what is the difference between KOLs, and the advertisements commonly used by companies for marketing?

Advertisements that are often used usually target a larger or broader audience, so their conversion impact will not be as significant. Unlike KOLs, these figures have a more specific audience in terms of characteristics, which increases the likelihood of generating more conversions. Further information about what KOLs is, their responsibilities and the work they do, as well as their functions in business, can be examined below.

Also read: US-China Trade War, These Are Challenges & Opportunities for Business!

Getting to Know KOL More Completely

KOL stands for key opinion leader, understood as an influential figure within a community niche. A KOL's ability to influence their community niche also stems from the perceptions of people within that community, who feel that this figure represents them in many ways. From product choices, lifestyle, to decision-making on specific topics. Ideally, a KOL does not seek primary income from paid promotions or collaborations with brands but works in their respective fields. What they convey on social media garners attention and affirmation because they are seen as representing many people in specific areas. They are then trusted due to their knowledge, information they possess, and their abilities, becoming a 'new force' in the world of marketing or product promotion.

Then what are the differences between KOL and influencer?

The question then arises, what is the difference between KOL and influencer? Influencer is basically someone who can influence others to follow them. Influencers are closely related to content creators, who work professionally in creating content.

Someone referred to as an influencer is someone who is skilled in social media, who develops a certain image to gain followers, influence, and community. Unlike KOLs, they tend to have other jobs. The products used, and then created into content, are not always related to the professions they pursue.

However, this does not mean that KOLs are not skilled in promoting products. Their way of 'selling' products is different from that of influencers and tends to have a smaller and more specific niche.

Job Responsibilities and Functions of KOL in the Business Context

In the marketing context, the role of KOL is certainly to help market the products you have. The hope with collaborating with KOL is that the products you own are better known to the right segment, thus increasing conversion and quality leads up to transactions.

From a business perspective, there are at least 5 responsibilities that KOLs (Key Opinion Leaders) have, which are as follows:

Promoting products or services to their community through the social media they use.
Collaborating with the company and marketing team to create promotional campaigns, thereby attracting potential consumers who are essentially their followers.
Negotiating contracts for cooperation with companies to promote products on their accounts.
Conducting research together with the company and team to align the products to be promoted with the target audience they have.
Implementing appropriate promotions to their followers or community, so that they are interested in seeing, considering, and purchasing the marketed products.

In addition to the 5 points mentioned above, KOLs can also help businesses expand the reach of their products and brand to capture a more relevant and targeted market. KOL followers have great trust in what is conveyed, so even though they know that the promoted products are a result of collaboration, they can still consider them rationally with the encouragement of honest opinions from the KOLs they follow.

Armed with the trust that KOLs have, it is expected that the content created can spur purchases from that market niche. Of course, you need to truly understand the character and community of the chosen KOL so that the collaboration has a significant impact on your product, both in terms of sales and brand awareness in the market.

Also read: 8 Ways to Manage Business Cash Flow, Don't Let It Go Negative!

7 Tips for Choosing the Right KOL for Your Business

Referring to the explanations provided, KOL types are distinguished into many categories. Starting from professional KOLs, industry KOLs, academic KOLs, media KOLs, creative KOLs, political KOLs, community KOLs, and many more.

Considering that the budget spent cannot be considered small, it is important to know the right tips for choosing the KOL to collaborate with.

1. Audience of Brands and Products

Make sure you really understand the audience and target market of the product you are going to sell. As mentioned earlier, the strength of each KOL is the community that places trust in them. By recognizing your audience, you can adjust which KOL is right for your product.

2. Campaign Goals

Ensure that the goals of the campaign you want to undertake are clear from the start. Do you want to increase brand awareness? Or do you want to introduce a new product? Or more straightforward, to increase overall product sales? Pay attention to the characteristics of each KOL, and you will know which figure is suitable for each of your campaigns.

3. Relevance of KOL

Not only should you have a large following and a suitable audience, but you must also pay attention to the relevance of the KOL to the product being promoted. Examine the content they have created in the past and ensure that the values of the chosen KOL align with the company or product.

4. Always Look at the Background

The history and background of the KOL are aspects that should not be overlooked when considering partners for collaboration. Ensure that the KOL has never had any issues with products, brands, other parties, or the law, so as not to negatively impact the product and company.

5. Conduct Statistical Analysis

Statistical analysis of KOL followers needs to be performed to the fullest so that you truly understand the value of the KOL whose services you will utilize. Compare the engagement rate with existing industry standards.

6. Collaboration Ability

Not all KOLs can collaborate with the brand or business that you have. Therefore, make sure to explore the relevant content they have created, and then conduct interviews or detailed briefings, so that you know the extent to which collaboration can be achieved.

7. Cost and Budget Evaluation

After all considerations have been made, the final step in selecting an influencer is to evaluate the costs and available budget, as well as the total required to establish this partnership. Calculate carefully, and ensure that the contract drafted is truly detailed and clear for mutual convenience.

Beware of Other Risks in Collaboration with KOL

Always keeping an eye on the two sides of the coin you are using is wise in building business partnerships, including in the selection of KOLs. Besides offering great strength to bring potential increases in brand awareness and sales, it is also good for you to know the risks that may arise for the business.

Some of them are as follows:

Mismatch between the KOL's image and the brand you have
Limited control over the content created by the KOL.
Costs that are not always proportional to the results provided
Engagement may not be consistent.
Potential audience that is inactive or even irrelevant
Each of these risks will certainly bring losses to your business.

This is why you also need to consider having reliable Business Insurance, which can protect you from significant losses due to mistakes in strategic decision-making such as in this marketing context.

Also Read: 7 Tips for Keeping Customer and Company Data Secure

Opportunities and risks always come hand in hand in the business world, in every decision you make. Choosing a KOL is one of them, so you need to approach it well, with detailed planning for every related aspect.

In addition to planning for the cooperation that will take place and choosing a KOL, it is also advisable to have a 'safety net' ready to assist you if unwanted things happen. Business insurance is the 'safety net' being referred to, because with this insurance you can obtain solutions when bad conditions occur. Such insurance will provide benefits and protection for the business, and you as the owner, when critical conditions strike the business and cause negative impacts.

PT AXA Insurance Indonesia offers SmartBusiness Insurance which will help protect your business from fatal risks for various reasons. With this safety net, you can make more relevant decisions based on in-depth analysis, making the choice of KOL not a time-consuming task. Contact us now and get reliable Business Insurance from PT AXA Insurance Indonesia right away!

Referensi:

https://www.centrea.id/fintech/661213133/waspadai-kekurangan-strategi-marketing-dengan-kol-risiko-tersembunyi-di-balik-promosi-melalui-influencer-populer?page=2
https://finance.detik.com/solusiukm/d-6295225/apa-itu-kol-marketing-pengertian-jenis-dan-cara-memilihnya
https://www.gramedia.com/literasi/kol-adalah/?srsltid=AfmBOor1zk0lFovjsei2O0h6sbV5fbEjGI54ahKKo0EJ2L85NBHA47HR
https://jubelio.com/apa-itu-kol-definisi-fungsi-dan-cara-memilih-yang-tepat/
https://influencity.com/resources/guide/what-are-kols-and-what-sets-them-apart-from-influencers