02 Dec How Live Streaming will change eCommerce in 2021!7 min read
In the previous article, we discussed how shortcomings of traditional online shopping can be overcome with real-time engagement features. The pandemic situation has further accentuated the need for these and accelerated the pace of adoption of such experiences.
It is seen that about 80% of customers drop out of a website or app within the first 30- 60 seconds of their visit. These few seconds are enough for a customer to decide whether the app has what he/she is looking for, or not. The same is the case with eCommerce apps and shopping cart dropouts. Users do not find the online store’s experience or the product information engaging and useful. Even after adding products to their cart, most customers abandon their carts and do not complete their order.
To counter all such challenges, implementing Live Video Streaming and Real-time Engagement features into your platform can be of big help as these offer improved product experiences, personalization, two-way communication, faster order placement, and much more.
In this blog, we’ll see how Live Streaming is transformational for online commerce, and how it will change eCommerce in 2021!
Table of Contents
Live Commerce Success Stories
Let us look at a live streaming success story before we move ahead!
On Single’s Day 2019, Kim Kardashian West co-hosted a live shopping session with one of the country’s top-selling influencers, Viya Huang. Kim Kardashian and sold out her entire stock of 150,000 KKW perfumes at $ 47 each in a matter of seconds. The stream also attracted over 13 million viewers in China.
Lately, Microsoft streamed their XBOX One S release event at the 2016 E3 conference. The event attracted more than 6.5 million views and thousands of comments. As a result of this stream, the XBOX One S was entirely sold out within two weeks of its launch.
During Shanghai Fashion Week, Adidas hosted a limited edition superstar sneaker release event. During the event, consumers interacted with hosts in real-time, and the event attracted 2.23 million viewers and generated more than $28 million in just 10 hours.
Luo Yonghao, one of China’s most famous tech entrepreneurs hosted a live stream in a bid to repay personal debt, which was over 100 million yuan. The live stream attracted more than 48 million views and generated sales exceeding RMB 110 million (about $15 million). During the event, he sold a number of products from Xiaomi smartphones to Gillette shaving razors.
A live stream event hosted by Tommy Hilfiger in China generated 14 million viewers and 1,300 hoodies were sold in two minutes.
A live stream event was hosted by Trip.com wherein the chairman, James Liang himself was the host and the event resulted in the booking of 80,000 rooms.
Hyundai Department Store sold 30% of the monthly sales of women’s fashion brand G-Cut’s products in just one hour via a live streaming event.
Bobbi Brown announced that its live streaming commerce conversion rate was 5% whereas the average order value was $99, compared to a typical conversion rate of 2% and the average order value of $87.
Apple conducts live streaming events twice a year wherein the brand hosts new product launches and generates excitement around their creations. One such event that was held in June 2014 event attracted 20 million viewers!
The realism that live streaming brings to online shopping is immense because the “live” element brings to viewers a sense of spatial immediacy where they feel like they are actually there in the moment and not behind the screen. This level of interaction not only intrigues the interest of potential buyers, but it can actually push them over the edge to purchase. Also, live streaming combined with Chat empowers real-time two-way communication between buyers and sellers, offers a better product experience, and facilitates real-time engagement with an influencer or a product expert. All this leads to a shopping experience resembling an authentic, in-store one.
Benefits of Live Streaming for Online Shopping
Live streaming platforms supply the authenticity that modern buyers crave for. There’s no video editing or photoshopping, this enables buyers to see exactly what they’ll get. It’s unscripted and unedited!
During a live stream, buyers watch hosts use, wear, or test products they’re promoting or launching. They also get to see real people telling real stories about real products, which shows the authenticity of a brand and gives buyers a conviction around their purchase decision. Furthermore taking viewers on a behind-the-scenes tour gives them an inside view of your brand which in turn helps them relate to your brand better.
Live-streaming creates a real-life shopping experience scenario that draws viewers closer to products. Through real-time interaction with product experts, influencers, or celebrities, consumers are able to try, feel, and inevitably trust products. Real-time interaction can include an influencer demonstrating a product to customers over live video, showing them all the key benefits, and building the knowledge and confidence needed to help them to ultimately make a purchase.
Viewers can also use chat to ask influencers questions about sizing, request close-ups of fabrics, or discuss what accessories would look better with each outfit. Hence live streaming provides a better product experience with a personal touch.
Live streaming opens up a two-way connection between brand and viewers that creates a level of interaction that can humanize a brand in a way that no other medium can. Customers who tune into live shopping sessions can leave comments or ask questions via live chat and hosts can address them in real-time which fosters engagement.
The unpredictable nature of live shopping draws more attention and urges customers to interact with the content, be it a like, a comment, or a share. Busting myths, playing games and trivia, and giving insightful facts with the help of live polls and reactions can further increase engagement during a session.
Sense of Urgency
The spontaneous nature of live stream generates feelings of curiosity, excitement, and FOMO among customers.
During a live session, live streamers can offer exclusive coupons, flash sales, giveaways, and lucky draws which creates a sense of urgency in audiences pushing them to shop. This sense of urgency can boost sales and conversion rates.
Promoting your brand with visual storytelling helps influence viewers to engage more with your content and create a more personal bond with your brand. Hence compelling video storytelling allows your brand to stand out and be noticed by customers.
Giving your audience an exclusive first look of a product, sharing announcements, sharing your brand values, and news that no one else knows yet, will make customers feel more in touch with your brand which ultimately leads to brand loyalty. Using Social Media, you can also build pre-event hype to get a large audience for your live stream show.
Using Live Streaming to serve complementary content that appeals to your target customer audience is a hidden gem! If you’re a Food Brand, then live streaming a yoga session while offering various breakfast options to your customers is a powerful way to use Live Video in your App for Sales.
Ultimately, storytelling and offering complementary content also help in improved brand image described in the previous section.
For many buyers, especially the youth, entertainment and fun factors are important for optimal shopping experience. The differentiated shopping experience they get with Live Streaming makes up for the pleasure they otherwise get in physical shopping. A large number of consumers are even willing to pay more if there is a fun shopping factor.
Allowing entertaining influencers to take over a session, presenting exciting content, holding raffles and quizzes, conducting product unboxing sessions, interviews, and challenging viewers for a competition or a bet, etc keeps customers hyped and happy and makes shopping entertaining for them.
Because of the importance of entertainment in shopping, some marketers have rightly coined the term: “Shoppertainment”. live streaming is an intriguing solution for brands to bring about more fun and entertainment via live shopping. This ultimately draws more audiences towards your brand and boosts retention and average session time.
There’s a bunch of data that comes from a live video stream, and it’s important to track the best metrics to get a complete picture of an event’s success. A key benefit of live streaming is the analytics tracking that aids to monitor the ROI you have made during a live event. Hence with this information, you can modify your content and delivery approach for utmost impact.
Aggregated benefits of Live Stream Shopping
The advantages of Live Streaming for Ecommerce that we’ve shared above are not exhaustive, and there certainly are more. Getting to know these will help you develop the right strategy to utilize to boost your leads and convert your customers into long-term clients. Increased sales conversion rate and a number of downloads, improved average session time, higher net promoter score (NPS), repeat customer rate, higher lifetime customer value (LCV), lower customer acquisition cost (CAC) – all of these can be direct benefits of leveraging LIVE STREAMING COMMERCE. Go ahead and get a live streaming solution, and stay connected with your customers, now and forever!
Channelize.io Live Streaming solution for Commerce can help you serve your customers in efficient ways by personalizing their experiences, engaging them in real-time, and offering better product experiences.
If you are on Shopify then you can leverage our Live Stream Shopping App and start streaming for free.