Livestream shopping has grown in popularity in recent months and is likely to become even more common in the future. The technology and its business model offer brands, influencers or celebrities an interactive experience to promote and sell products. and for consumers to participate by asking questions and shopping during the event.
The E-Commerce Times spoke to several experts in the field to find out what is driving this trend – and to find out why livestream shopping events have become a trend.
“Livestream shopping events have become a popular way for customers to make purchases while properly following health guidelines such as social distancing and compliance [they] Give stores an opportunity to create something that is as similar to the personal experience as possible, “Kenshoo’s chief marketing officer Margo Kahnrose told the E-Commerce Times.
Kahnrose added that livestream shopping “is a modern way for brands to raise awareness, move excess inventory, and give customers a sense of the sensory experience they’re used to coming to the store.”
Streaming isn’t limited to shopping, and livestream shopping arises from a broad cultural shift towards this method of communication – as well as the trends and habits acquired during the pandemic.
“The first is we stream everything these days: Netflix, our news, exciting videos, and even our workouts,” Melanie Nelson, director of channel management at BrandJump, told the E-Commerce Times.
“The second thing is that we have seen dramatic shifts in online shopping due to the pandemic and believe that many of these consumption habits will persist after the pandemic. These two things together form the basis for the launch of livestream shopping.” She added.
Ultimately, selling products through a live stream event can be as much about building a sense of community between customers and brands as it is about the sales process.
“I wanted to create a shopping community that was fun, engaging, and personalized, and that brought back the nostalgic ‘window shopping’ feeling in digital form, where shoppers could interact in a live community from the comfort of their homes,” said Toby Zhang. Shop LIT Live founder and CEO told the E-Commerce Times.
“Livestream shopping is the perfect solution for this. [and] Hence, we see livestream purchases begin in the US. “
Ultimately, livestream shopping offers a multitude of benefits for businesses and consumers.
“Livestream shopping is an ideal stage for companies to share their stories with audiences in a much more personal way,” said Zhang. “At the same time, it is also a channel for them to find out more about their customers.
“For shoppers, livestream shopping is an informative way of getting to know brands and products in a highly interactive and engaging way. As a buyer, you can see product demos in real time and answer all of your questions in real time. This will help customers make better purchasing decisions. ”
Successful livestream trading
Companies that want to be successful in their livestreams need to make sure that these events align with their brand’s identity and spirit.
“Today’s consumer is savvy, has many options, and wants to be reflected in the brands they buy,” said Kahnrose. “It is important that each livestream host is a good fit with the brand, engages the target customer and reflects the brand identity and values.”
It’s also important that companies integrate their live streaming into a broader digital and e-commerce strategy.
“It is also very important that live-stream shopping events are part of a broader strategy around digital commerce and are connected to other shopping channels,” added Kahnrose.
“You need ways to measure engagement, sales impact, and re-motivate viewers after the event. Incrementality testing and retargeting in search engines and retail media are great tools to do this. For example, Kenshoo has an attribution solution that sheds light on connection between Facebook and Instagram advertising and sales on Amazon. “
As with any sales and marketing, live streaming companies need to engage with customers and create a sense of excitement. They also need to find live streaming times and formats that are appropriate for their target audience.
“You want a host who is engaging and can connect with your audience,” said Nelson of BrandJump. “Working with influencers with a following who may need your product is a great way to see if you’re trying to build your own branding following.
“The host or buyer also needs to create excitement at their event and give consumers a reason to sign up. This type of event is best for a new product launch or a tutorial on how to use your products. After all, that’s what you want to know Audiences you want to reach and choose the best day and time to connect with them. ”
Evolution of live streaming
Livestream purchases are increasingly being made through social media apps. This trend is expected to continue to grow and develop.
“Livestream shopping has only been available for apps like Instagram and Facebook for the past few months, and thousands of brands have already used this method,” said Kahnrose of Kenshoo.
“It is fast becoming a new normal, however, and consumers are learning that e-commerce doesn’t have to be disconnected as traditional online shopping can be. Live-stream shopping is an area that is growing fast and like many.” Consumers In the face of technology, this will continue to be a popular way for brands and consumers to connect and engage, “she noted.
As livestream sales and purchases become more prevalent, technologies will likely improve and become even more user-friendly.
“The more social platforms use livestream shopping methods and the more consumers engage, the better the technology will evolve,” said Nelson. “The future looks incredibly bright for livestream purchases as it gives consumers the joy of discovering, entertaining, and learning about new products from their favorite brands or influencers.
“Thanks to the convenience of the online offer, they can get involved anywhere and be part of the experience – whether at home, at work or while traveling.”
As live streaming has become a central part of selling and buying, it is likely to evolve and thrive.
“We see brands, creators and consumers embracing this new shopping format,” said Zhang of Shop LIT Live. “We expect more and more brands, both large and small, to use live shopping as their dominant sales channel.
“On the consumer side, we expect that they will find it difficult to return to the previous ways of buying online once they are comfortable and familiar with this new format.”