Saral’s Yash Chavan on influencer marketing shifts, ROI metrics, and AI-driven solutions

‘Strike while the iron is hot.’ In the influencer marketing ecosystem, this adage highlights the need for precise timing and efficient strategies. The sector has evolved from a simple trend into a complex landscape requiring careful management of metrics and relationships. As per market research firm Statista, influencer marketing has become a prominent and effective form of online marketing, leveraging the vast number of internet users who turn to social media for entertainment, inspiration, and product recommendations. In 2023, the global influencer marketing market was valued at $21.1 billion, more than tripling since 2019. With the industry’s continued maturation, the size and value of influencer marketing platforms are expanding annually, making brand and creator collaborations increasingly profitable.

Amid this shift, some platforms are refining how influencer marketing functions. One such platform is SARAL which is an influencer marketing platform for consumer brands that provides a subscription-based service to offer tools for influencer discovery, campaign management, and performance tracking. This model reflects a growing demand for streamlined and effective solutions in a competitive market. In a conversation with BrandWagon Online, Yash Chavan, founder, SARAL, talks about the company’s market strategy, pricing model, and growth projections, among others. (Edited Excerpts)

How did you determine the market need for your product before development, and how does your pricing model impact your projected revenue growth?

I think beyond the business model, it’s really about having a solid product that the market already wants. Most startups take a long time to reach certain revenue or growth milestones because they build something that may not be in demand initially and then pivot to find the right product-market fit. We, however, figured out what the market wanted before we even started building the platform. When it was ready, people were eager to adopt it. It’s like having the perfect product that meets your exact needs. Many in the market started signing up right away.

So, more than the business model or marketing strategies, it comes down to having a strong product. As for our pricing model, it’s straightforward: we offer a month-to-month subscription, similar to services like Netflix or other SaaS companies. Users pay a monthly fee for access to the product.

For FY 25, which is 18 months from now, we are projecting at least $5 million in Annual Recurring Revenue (ARR). By the end of this year, we expect to reach approximately $2.5 million in ARR. As our product continues to improve, we anticipate that growth will accelerate, aiming to achieve around $5 to $6 million in ARR by the end of next year.

What are your pricing tiers or models for the platform’s various features and services?

We offer multiple pricing plans for our service. The base plan starts at $499 per month, with higher tier plans available at $999 and $1,499 per month. These are month-to-month subscriptions that e-commerce companies in the US can sign up for. Generally, our pricing ranges from $499 to $999 per month per customer.

What are the potential risks or challenges your company faces in maintaining high Return on Advertising Spend (ROAS), and how do you plan to address them?

ROAS is influenced by several factors. Traditionally, e-commerce brands in the US grew through Facebook ads, which were highly effective from around 2017 to 2020. However, since 2020, Facebook’s increased privacy restrictions have reduced the effectiveness of these ads. Previously, it was common to achieve a 4x or 5x ROAS on Facebook, but now it’s rare to exceed a 2x ROAS.

Brands are looking for channels that provide better returns. Influencer marketing, particularly with our platform, has proven to be effective. On average, brands that collaborate with us see a ROAS of about 5.12x. This means that for every $1 spent on influencer marketing, they receive approximately $5.12 in return by the end of the month.

How does the ROI of influencer marketing through your Saral platform compare to traditional marketing channels like Facebook ads and email marketing, and why do you believe influencer marketing provides better results in terms of trust and engagement?

Currently, Facebook ads offer a return on ad spend (ROAS) of around 1.5 to 2x, with some cases reaching up to 2.2x. Email marketing generally has a higher ROAS because it targets customers who have already opted in, making them more likely to purchase. However, when it comes to reaching a cold audience—people who have never heard of your brand before—influencer marketing is now the most effective channel.

The reason for this is that influencer marketing is based on trust. Unlike Facebook ads, which can feel intrusive and disruptive, influencers recommend products in a more organic way. Their endorsements come from a trusted source, making potential customers more receptive. This is similar to how you’re more likely to buy a product if a friend recommends it compared to a salesperson trying to sell it. People are increasingly looking for more authentic and natural ways to make purchasing decisions, which is why influencer marketing tends to produce better results.

What criteria or processes do you use to select and manage influencers for campaigns?

We use a two-pronged approach to select and manage influencers for campaigns. Our platform provides access to a comprehensive database of influencers across social media, enabling brands to reach out to any influencer, whether or not we have a formal relationship with them. This direct access removes traditional barriers and streamlines the process.

In addition to this, we assess influencers based on both quantitative and qualitative criteria. Quantitatively, we look at metrics such as follower count, engagement rate, and authenticity, using tools to detect fake followers and ensure the accuracy of these metrics. Qualitatively, we evaluate whether an influencer’s values and content align with the brand’s messaging, ensuring a good fit between the influencer’s profile and the brand’s goals. This combination of approaches helps brands connect with the right influencers and achieve their campaign objectives effectively.

What are the key features your platform offers for influencer marketing?

Our primary offering is a robust software platform with multiple features to enhance influencer marketing. Users can search for influencers by various criteria, such as interests and location, to find the right match for their campaign. The platform includes an automated messaging system, allowing users to reach out to multiple influencers with customisable messages quickly and efficiently.

Additionally, the platform features a Creator Relationship Management (CRM) system to manage and track influencer interactions, providing visibility into each stage of the process. Users can monitor performance through detailed analytics, which shows how well influencers are driving sales or engagement. Finally, the platform offers integrated payment options, simplifying the process of compensating influencers. This all-in-one solution supports everything from influencer discovery and outreach to performance tracking and payments.

How is AI transforming the influencer marketing ecosystem, and what impact does it have on efficiency and personalisation compared to traditional methods?

AI plays a significant role in enhancing the efficiency and personalisation of our platform. One of the key applications of AI is in auto-composing messages to influencers based on their profiles. For instance, if an influencer is an entrepreneur and a parent, the AI will craft a personalised message acknowledging their achievements and balancing their responsibilities.

Additionally, AI streamlines other aspects of the process. For example, when an influencer provides a shipping address, the AI automatically records it and manages the product shipment, reducing manual work. These AI-driven features help minimise time-consuming tasks and enhance the overall user experience on our platform.

India is transitioning from a services-based economy to a product-oriented one. In the 90s and early 2000s, Indian tech giants like Infosys and TCS primarily provided tech support and outsourcing services to US companies. However, since around 2013, there has been a shift towards developing and exporting high-quality products.

Today, Indian companies, including ours, are making a mark globally with innovative products. We see e-commerce and SaaS companies from India successfully entering international markets, reflecting the country’s evolving reputation from offering cost-effective solutions to delivering world-class products.

This shift signifies that Indian products are now viewed as competitive and sophisticated, not just cost-effective alternatives. We aim to be at the forefront of this transformation, showcasing India’s capability to produce industry-leading solutions on a global scale.