According to a report from market research platform DISQO, by mid-2022, 54.7% of all US consumers had watched a live or pre-recorded video shopping event. With video growing even bigger for the retail industry in 2023, it’s a question of “how” and not “if” video commerce will continue its rapid and impressive growth.
Will businesses continue to lean on video commerce platforms even more? Will the mass adoption of video shopping have an impact on the overall shopping experience? These are just some of the questions we are looking to answer based on what we have seen in 2023, so far.
At Firework, we have put together the three biggest lessons and takeaways from Q1 of 2023 that brands and marketers should pay heed to.
1. Videos will continue to be important for brands to build credibility and loyalty
It should come as no surprise that “immersiveness” is the name of the game for brands going forward.
Immersive experiences have become increasingly more popular, and engaging, with consumers. And nothing beats video when it comes to delivering said immersiveness.
After all, video has always been a powerful and dynamic tool for forging emotional connections. Brands will increasingly lean on video as a format to deliver content that customers will find more…
- Relatable, and
Customers feel more connected to a brand when they consume video content. This is especially true for new-gen consumers – Gen Z and Millennials – who crave more authentic video content, not highly produced ads.
Small businesses have generally done a very good job at delivering this authentic content. The simple act of putting the founder in front of the camera helps build a wholesome, human connection in a way only video can.
Brands will also be leaning on video for user-generated content (UGC), with customer video reviews in particular gaining even more traction. This goes back to brands and retailers delivering video content that consumers find authentic and relatable.
2. Video commerce is transforming the shopping experience in real-time
Though video commerce as a concept is relatively new, it is already very well-developed in markets like Asia. In North America, video commerce is destined to hit the same heights, having seen a huge acceleration in the last 18 months.
Video and livestream commerce adoption has skyrocketed in 2022, and brands will continue to adopt it with open arms in 2023 as well.
This is because marketers know that connecting with consumers on a more personal level is an age-old success tactic that works for companies of all sizes – something that video commerce truly delivers on.
Taking video commerce and combining it with a genuine understanding of customers’ needs is paving the pathway for brands to hit new levels of authenticity. Moreover, they are able to do so on demand, and at scale!
It is also important for marketers to remember that consumers don’t watch a shoppable video just because it is a video. The content matters, as does the commerce layer. Video commerce partners like Firework provide brands with the tools that enable sales associates and customers alike to become the new influencers for authentic content and storytelling.
3. Businesses are pivoting to partners who can provide multiple services
Times of economic uncertainty are moving businesses to analyze, optimize, and consolidate their stack of tech providers.
After all, why would a business work with five different vendors when one can get the job done?
For example: rather than seeking out a live-commerce platform, retailers will gravitate towards vendors offering full-fledged video commerce solutions.
This will ensure that tech providers continue to prioritize nimbleness and flexibility as they scale for everything, from big enterprises to small businesses.
Going forward, retail businesses will have certain expectations that B2B solutions providers will be expected to meet:
1. The ability to deliver a great user experience overall
2. Customer-centric teams that can help big enterprises navigate innovation
3. Easy-to-implement technology with turnkey solutions that fit with the existing tech stack
4. Adaptability to keep up with customers’ multiple, changing needs and expectations
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Tech providers that are able to deliver these solutions will stand out in a world of increasingly-competitive resources, especially by lowering the barrier to entry for retailers looking to explore new technology adoption.
As video continues to play an ever-growing role in consumer engagement, brands will continue their efforts to convert that engagement into sales. As a result, integrating video commerce – in all its forms – will continue to top brands’ wishlists for the rest of 2023, and beyond.
Firework partners are well-positioned to thrive in this new and ever-evolving era of cloud commerce. Wondering what Firework can do for your brand? Request a demo today.