The live commerce revolution
New sales channels are constantly evolving—from ecommerce to social commerce to the emergence of livestream shopping.
Simply put, live commerce entails “linking up an online livestream broadcast with an e-commerce store to allow viewers to watch and shop at the same time.”. It’s a livestream shopping event initiated by brands and most often hosted by individual brand ambassadors, influencers or even knowledgeable employees. Its objective is to empower consumers to participate through reaction buttons and chat functions as well as instantly purchase items/products. Amazon, YouTube, Instagram and Facebook are some of the platforms leading the way in livestream shopping. And brands such as Sephora and Petco are already leveraging those platforms’ new functionalities by frequently hosting shoppable livestream events.
Live commerce has two major benefits: it enables brands to increase conversion rates while improving brand image and positioning them as in-the-know with the latest trends. This ultimately fosters meaningful brand-consumer interactions and helps build long-term relationships.
With technology and the pandemic changing the way people shop, consumers are valuing experiences more than ever. Using live commerce, brands can entertain consumers & keep them highly engaged, providing them with unique experiences that are memorable.
The new sales channel empowers businesses to go far beyond marketing and showcasing products; they can illustrate ease of use, describe how products are produced, or showcase creative ways to benefit from them. Best of all, as consumers are immersed into the livestream shopping event, brands can smoothly lead them through the entire customer journey—from awareness to purchase—in a way that has never been available to them in the past.
By embracing this emerging sales channel, brands can improve their positioning and better differentiate themselves, strengthening their existing customer base as well as attracting new shoppers. And since Gen Z tends to be most attracted to innovative shopping features and unique brand experiences, live commerce will be especially valuable to brands currently targeting or planning to target this younger consumer segment.
The potential power and influence of livestream shopping is endless. Here are three tips on how brands can best leverage the live commerce revolution:
1) Effectively use your influencers
Consumers often perceive influencers as more trustworthy and credible than brands themselves. An inspirational influencer that’s aligned with the brand messaging and positioning in your next livestream shopping event.
2) Accurately track the Return on Investment of your Influencer Marketing
There is less of a need to set KPIs to track ROI over time. The direct connection between a livestream shopping event hosted by an influencer and viewership rates, number of completed orders, revenue generated, etc. will enable your brand to track ROI immediately and optimize more effectively.
3) Strategically apply scarcity tactics
People often desire what is high in demand and hard to get. Creating exclusive products or promotions, such as shopping codes only valid for purchases made through the livestream shopping channel, can boost conversion rates tremendously.
Live commerce means a new era of sales and has the potential to change the way consumers interact with brands while revolutionising the retail industry. Strategically leveraging influencers for live commerce can help your business gain traction in this emerging field, significantly driving website traffic, increasing overall sales, and creating meaningful connections with customers. Collectively this helps your brand build sustainable growth for long-term growth.