Remember the days of window shopping? Videos are the new shop fronts of today, and the whole world is shopping online. There is a dire need for brands to rethink their customer engagement and experience strategy to stay ahead of the curve. In the next 10 years, the GenZ consumer is going to trigger a radical shift in the way people shop with a shift towards interactive shopping experiences, mobile-optimized experiences, and the dominance of video.
The new-age consumer is hungry for organic, high-value experiences from value-driven brands that foster a sense of community. Sponsored content comes in the way of all that, and brands are starting to see the challenges of long-term retention with the existing growth model.
According to a SurveyMonkey report on GenZ shopping trends, 51% of GenZ consumers find inspiration to shop from brand’s websites directly, followed closely by social media.
When it comes to product research, Youtube is the most preferred platform by GenZ (47%) and Millennials (35%) because of the greater immersion and knowledge acquisition made possible by video. According to a Google research report, 6 out of 10 subscribers prefer the shopping advice of a creator to a mainstream celebrity.
The rise of shoppable videos has fundamentally changed the way people shop online. In a survey, 41% of viewers said they added a product to their cart after watching a shoppable video.
It is especially popular with GenZ and millennials who want a more engaging and interactive shopping experience online. Brands that do not add value to their customers’ shopping experience and run ads to sell products are no longer popular with the new-gen customers.
Let’s dive in and explore this emerging trend of shoppable videos and why it is crucial to the digital marketing strategy of some of the top brands today.
Why Are DTC Brands Struggling Today?
In the past couple of years, many brands rode the ‘direct-to-consumer’ wave and decided to take out all the existing middlemen and reach consumers directly via the power of the Internet. The DTC craze has finally started to level out with market corrections that have affected revenue expectations and performance.
The incentives that brands capitalized on, like highly affordable Facebook ads, low-cost shipping, and a seemingly large pool of customers, are no longer found. Instead, brands are struggling with inconsistent ad measurement, privacy-related changes that affect customer tracking, rising competition, and the massive cost of online advertisement.
Have you seen the memes on how Netflix asks its viewers if they are still watching, and everyone unanimously answers, ‘we are always watching’?
The high-quality entertainment value that Netflix offers its viewers keeps them coming back for more. The answer to DTC’s woes lies in cracking customer experience and creating a sticky, exciting experience that generates massive customer loyalty. So why can’t more direct-to-consumer brands generate that level of customer engagement?
With so much content for consumers, DTC brands struggle to set themselves apart. It’s challenging to build a loyal community of customers who trust the brand and keep coming back for repeat purchases.
- Considering 89% of brands view customer experience as the driving factor in enhancing customer loyalty and retention, DTC brands need to curate a mind-blowing customer experience.
- Improving customer experience has a direct effect on a brand’s revenue. According to research, 84% of firms generated higher income by enhancing their customer experience.
When a brand can curate a terrific customer experience on their website, customers will be incentivized to directly visit the site instead of shopping from marketplaces like Amazon.
This can transform how you collect and use valuable data relating to your customer experience. You will be able to generate a large volume of first-party on how customers interact on your website, which will help you assess and enhance your marketing strategy.
So what should direct-to-consumer brands do to overcome this difficulty of customer engagement and retention?
How Are Shoppable Videos Changing the Game?
To understand the potential of videos in influencing a purchase decision, consider this stat – 8 out of 10 people have purchased an application or software after watching a brand video of it.
Shoppable videos are adding incredible value to the shopping experience for new-gen customers. They can see the product up close and discover helpful information about the item. In a fun and short video format, this ensures greater engagement and information retention. With Firework, brands are experiencing a 250% increase in engagement and up to 157% increase in organic traffic.
The ROI for shoppable videos is through the roof – and if your brand isn’t harnessing the power of this global trend, you will be left behind in a fiercely competitive market.
Why Should DTC Brands Experiment With Shoppable Videos?
Are you still unconvinced about the value that shoppable brands can add to your business? Here are 6 key benefits of shoppable videos for DTC brands:
- Increasing Customer Stickiness: We have all spent hours on YouTube falling down a video rabbit hole. Shoppable videos create a captivating customer experience which improves the chances of customers staying longer on your website. Increasing time spent on your website would require you to offer something similar in terms of infotainment value to your consumers. Firework has helped brands add up to 9 minutes to average session times with interactive shoppable videos!
- Improved Product Showcase: With new digital innovations, brands have greater scope to create a dynamic, visually-driven impact on customers. Using an interactive video for your product showcase will have a more powerful effect on the customer than a text and image-based content campaign. According to a 2022 survey, 94% of marketers say video has helped them increase their understanding of products or services.
- Impacting Add-to-Cart Rates: When a customer visits your website, you don’t just want them to view your products—they should add them to the cart and ultimately make a purchase. The add-to-cart rate increases by 37% when a product video is used on the product page. Shoppable videos enable faster customer transition along the marketing funnel.
- Product Discovery: According to a survey, 59% of online shoppers believe they can find more interesting products on personalized retail platforms. Creating an engaging, swipeable story-like experience for your brand would help you personalize the experience for your customers. This would make the product discovery process more enjoyable for the customers and easier to navigate.
- Impacts Customer Decision Making: Genz and millennials hate waiting. They want instant gratification when shopping online. If they see something they like on the Internet, they want to purchase it immediately. Shoppable videos close the gap between the point of inspiration and the point of purchase, quickening the customer decision-making process.
- Better Conversion Rates: It is no surprise that your conversion rate can go up by 80% if you add a video to your landing page. Marketers worldwide have realized the powerful impact of video commerce and how it drives conversion on their websites. Brands can reduce cart abandonments, collect first-party data for more meaningful market research, and boost customer engagement.
Shoppable Videos Are the Future
With over 40% of marketers now using shoppable videos, it has been established that this is a trend that is here to stay.
As a DTC brand, we recommend that you harness the power of this disruptive trend in eCommerce and elevate the customer experience that your brand can offer.