In a digital-first world, Live streaming eCommerce is paving the way for a revolutionary transformation. Brands are eager to set themselves apart in an increasingly saturated digital commerce landscape. Capturing and holding the audience’s attention long enough is vital to brand success in today’s content-driven digital space.
With Livestream shopping, the world is witnessing the future of commerce that combines the excitement of physical shopping with the convenience of online business.
Did you know that nearly 79% of mobile use is estimated to go towards livestreaming by 2022?
It is, therefore, no surprise that brands are increasingly adopting a digital marketing strategy that revolves around livestreaming commerce.
This piece will discuss the potential benefits that Live streaming eCommerce offers to help your brand achieve long-term and sustainable growth. Before that let us learn about the challenges.
What are Live Streaming eCommerce Challenges?
1. Customer Engagement
It is an essential priority for marketers. And it is not surprising that most marketers are struggling with this, considering how fiercely competitive the market is.
2. Lack of Pattern
GenZ and Millennials today consume more content than any other age group. They are the target audience for most marketers, and their viewing habits are not static.
3. Traditional eCommerce Lacks the Hook
Did you know that in 2021, 65% of Generation Z admitted to spending more time on social media than ever before? If the hours spent on TikTok and Netflix are any indication, it is clear that today’s consumer wants content that has them hooked.
Unfortunately, this is where traditional eCommerce is lacking. It is functional but not nearly as entertaining and impactful as live content. Since it cannot offer audiences an immersive experience, they are going elsewhere to look for alternatives.
This is where live video commerce comes in to save the day! It has emerged as the number one innovation in traditional eCommerce. Moreover, it can create dynamic, engaging, and video-powered content that keeps your consumer hooked. Just look at the digital engagement numbers below:
How is Livestreaming eCommerce Transforming Digital Trading?
According to a survey, 54% of customers want companies to transform how they engage fundamentally. So what are the top brands doing differently to attract their audience?
You have heard of the video commerce trend, but do you know it is one of the most influential trends? The rise of Live streaming eCommerce is nothing short of a revolution in the eCommerce space. Every successful brand has either adopted the trend or plans to do so. For instance, take a look at the numbers of live commerce users depicted in the image below:
According to Statista, consumers in China using live commerce solutions–spend significantly more time on E-Commerce platforms than non-live commerce users. The massive appeal of live stream shopping enables brands to create an immersive experience that generates continued consumer interest to spend more time on their platform and engage meaningfully.
Let’s take a look at how TaoBao leveraged the live streaming trend.
In China, beauty influencer Li Jiaqi has garnered a loyal fan following of millions through regular live streaming of his products and brand. Powered by TaoBao live, Li has created an exciting brand for his followers, who refer to him as the ‘Lipstick King of China.’
As he and many other Key Opinion Leaders demonstrated in China’s live streaming space, adopting a robust live stream eCommerce software solution gives you an organic reach like no other means.
With shoppable video commerce, brands can deliver essential information about their products to customers in an entertaining and engaging video format. It significantly reduces the bounce rate for your site and increases the chances of conversion to 80%.
Video-powered information dispersal is proven to be more effective for brands. Research shows that viewers will retain 95% of a message when they see it in a video format instead of 10% when reading it.
Every major brand that has integrated Livestream shopping platform into their business marketing strategy has noted an increase in revenue and greatly enhanced the customer experience on their site. It is because video commerce creates a more entertaining and personalized shopping experience for the modern consumer, which they highly value.
Top 7 Benefits of Livestream Shopping For Your Brand
Now you know the potential of Live streaming eCommerce and its impact on customer engagement. Let’s take a deeper dive into the details.
Below are the top 7 advantages of live streaming eCommerce that illustrate its ability to elevate your digital transformation process:
Benefit 1: Reduced Product Returns
Approximately 20% of products bought online are returned. One of the primary causes is the product information getting lost in translation when conveyed via text. As a result, customers report a mismatch in their expectations and the product they receive.
Live streaming eCommerce cuts the clutter and gets straight to the point. It delivers valuable product information in a video format that customers find entertaining and can retain. It brings down the chances of product returns.
Benefit 2: Better Inventory Management
Imagine you are a shoe brand with a large inventory. You are generating sales through third-party websites, and the lack of data makes it hard to plan your list.
With live streaming, you can track each product’s performance by assessing the likes, comments, average time spent watching, CTR, and several deep data insights. You can determine whether your customers are leaning toward heels or sneakers and plan your inventory needs significantly better than traditional e-Commerce, which has a longer feedback cycle.
Tracking your customers’ preferences helps you plan your production not just for the present but also for the future. This allows for intelligent inventory management that cuts your losses and positively impacts your revenue.
Benefit 3: Higher CLTV (Customer Lifetime Value)
Livestream eCommerce has enabled brands to retain their customers by delivering valuable content and a highly differentiated shopping experience ensuring better customer retention. With the rise in retention rate, the average order value increases as customers get more comfortable with the format.
By building lasting relationships based on trust and transparency via Live Commerce, brands can record a higher Customer Lifetime Value (CLTV).
Benefit 4: Reduced Consideration Period
How often have you seen an exciting product on print media and forgotten about it later? Reducing the consideration period is critical for conversion on eCommerce, which is where live stream eCommerce excels.
Live commerce has fundamentally lowered the gap between discovery and inspiration and purchase. Customers can discover a new product/brand, watch the live stream to conduct research in real-time, talk to the larger community over the live stream, and complete the purchase from the live stream itself!
Benefit 5: Higher Quality of Engagement
Around 54% of customers want brands to offer them more video content; if your brand isn’t doing that, you will be left behind.
Video commerce enables a more enriching shopping experience for customers that imparts valuable product knowledge that helps with customer decision-making. Brands can also better collect accurate first-party data on likes, shares, and comments when live streaming is integrated into their website.
Benefit 6: Increased Quality of Customer Education
According to 81% of customers surveyed for a marketing study, trust plays a crucial role in purchasing decisions. Your brand must be transparent and offer authentic customer information to build trust.
By leveraging Live streaming shopping, you can enhance the quality of customer education for your brand, making your audience trust your brand. This will help build lasting customer relationships that bring in real revenue growth.
Benefit 7: First-party Customer Data
Brands benefit highly from having access to first-party customer data, which is increasingly difficult. The gradual disappearance of cookies forces brands to rely heavily on social media for valuable metrics on potential customers.
Adopting a live-commerce solution would allow brands to decrease this dependency and generate their data. Having key customer metrics will enable brands to design better retargeting campaigns and enhance the personalization experience for viewers.
Are You Ready?
Live streaming eCommerce shopping will be a new norm in the eCommerce world, and we have illustrated why it is paramount to your business development.
Give your customer the unique and engaging experience they deserve and boost your revenue by deploying a robust, mobile-optimized video commerce solution today!