7 Crucial Benefits of Livestream Shopping for E-Commerce Growth

Priyam

Brands are eager to set themselves apart in an increasingly saturated digital commerce landscape. Capturing the audience’s attention and holding it 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 commerce. 

Did you know that close to 79% of mobile use is estimated to go towards live streaming by 2022? It is, therefore, no surprise that brands are increasingly adopting a digital marketing strategy that revolves around live streaming. 

In fact, with big names such as Google, Facebook, TikTok, and Pinterest jumping onto the live shopping trend, the market is estimated to become a $500 billion market.

This piece will dive into the potential benefits of Livestream shopping for your brand and how it can help your business achieve long-term and sustainable growth.

What’s Ailing Ecommerce Businesses Today? 

Customer engagement 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. 

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. 

Did you know that in 2021, 65% of Generation Z admitted 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 commerce comes in to save the day! It has emerged as the number one innovation in traditional eCommerce that can create dynamic, engaging, and video-powered content that keeps your consumer hooked. 

livestream shopping salesforce report
Salesforce stated Livestreaming as the second most popular marketing strategy for business growth in their State of Marketing 2022 report.

 

The Reign of Live Commerce: Fundamentally Transforming Digital Commerce

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 that it is one of the most influential trends? The rise of Livestream shopping is nothing short of a revolution in the eCommerce space. Every successful brand has either adopted the trend or is planning to do so.  

livestream shopping statista report

According to Statista, consumers in China using Live Commerce spend significantly more time on E-Commerce platforms compared to non-Live Commerce users. The massive appeal of live stream shopping enables brands to create an immersive experience that generates continued interest from consumers to spend more time on their platform, and engage meaningfully.

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 commerce solution gives you an organic reach like no other means. 

With 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 in their business marketing strategy has noted an increase in revenue and greatly enhanced the customer experience on their site. It is because video commerce enables the creation of 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 that you are aware of the potential of Livestream shopping and its impact on customer engagement, let’s get down to the details.

Below are the top 7 Livestream shopping benefits for your brand, which illustrate its ability to elevate your digital marketing strategy:

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. 

Livestream shopping 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 the product performance for each product by assessing the likes, comments, average time spent watching, CTR, and several deep data insights. You can figure out 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 shopping 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 also 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 E-Commerce, and this is where live stream commerce 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, and if your brand isn’t doing that, you will be left behind.

Video commerce enables a more enriching shopping experience for customers that imparts useful 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 needs to be transparent and offer authentic customer information to build trust.

By leveraging Livestream shopping, you can enhance the quality of customer education for your brand, which will make 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?

Livestream 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!

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