Like the Home Shopping Network of the ’80s, live-streaming platforms allow anyone to promote and sell products. These channels can be run by influencers, everyday people, or established brands.
The appeal of these events lies in the FOMO factor and the entertainment value. Livestreams typically feature countdowns or how many units remain to play on customers’ fears of missing out.
Brands can deliver a personalized experience
Live shopping is an online retail process that allows consumers to purchase products through real-time video streams.
This type of marketing is often paired with chat features that allow viewers to ask questions and receive additional information about the product. It also allows brands to educate customers about their products one-on-one. Providing this additional product information effectively reduces return rates, which can be as high as 40% for some retailers.
The key to a successful livestream is ensuring the content is relevant to your audience. It is also essential to remind the viewer of the CTA regularly throughout the event and during natural breaks in the conversation. It will help to drive conversions and reduce shopping cart abandonment.
Brands can use various tools to host and manage a livestream event, including video-conferencing apps and social media platforms. Some companies have even taken this further, creating a dedicated consumer platform.
They can engage with customers.
There are several ways to interact with customers through a live stream, whether on a native live shopping app such as TikTok or a brand’s website or mobile app. Live videos feature one or more presenters trying on products, presenting their benefits, explaining how to use them, and more. It creates engagement that leads to brand loyalty and recurring purchases.
The presenters are typically influencers, celebrities, or even brand employees, but they can also be ordinary people that viewers know and love. Brands can build relationships with audiences through live streaming.
They can drive these sales by leveraging FOMO and creating a knowledge-sharing experience for their viewers, making them feel valued and inspired to buy. This e-commerce content drives recurring product sales for many businesses. FOMO is a powerful trigger that can motivate shoppers to buy impulsively, especially when the offer is limited. However, brands should always remember that FOMO is an emotional trigger, and giving viewers a rational reason to purchase is essential.
They can deliver a seamless experience
It’s no secret that consumers crave more connection, personalization, and a seamless brand experience. Live shopping is a powerful tool for delivering these experiences and driving growth and long-term results for your business.
Live shopping is the browsing, buying, and selling products via real-time video broadcasts. Think of it as home shopping channels on TV but on TikTok (or the many other platforms that offer shoppable videos).
A recent study from Coresight Research found that consumers view educational content as the most critical factor during a shoppable livestream event, with discounts coming in a close second. These events also allow you to level up product launches, drive sales of your bestsellers, and increase conversion rates overall.
As you plan your live shopping event, think about the objectives of your campaign and which products you want to feature. These could be your latest items or items you promote for a specific sales period. You can partner with an influencer or celebrity who resonates with your audience, attracting more people and boosting your reach.
The brand’s success demonstrates how using the right person or personality to host your event can make all the difference.
They can drive sales
A live shopping video is a live stream featuring one or more people presenting products and encouraging viewers to buy them by showcasing their benefits, demonstrating how to use the product, or inviting viewers to participate in a giveaway. It can be hosted on social media, native live shopping platforms, or a merchant’s website.
Social selling isn’t new, but it’s gained momentum thanks to the popularity of livestreaming platforms and shopping apps. Today, influencers and everyday people can run shoppable livestreams to drive sales on social platforms like Instagram or YouTube.
Live streaming also offers brands a powerful opportunity to educate consumers, which leads to lower returns and more confident purchases. According to Coresight Research, educational content is the most popular reason shoppers watch shoppable livestreams. It is significant for high-end or niche products that may need to be more familiar to customers, as it gives them a detailed understanding of their purchasing.
Brands that want to make the most of their shoppable live streams should aim to engage with their audience frequently. Reminding viewers to tap “Add to Cart” and buy the product effectively increases conversion rates and reduces cart abandonment. It should be done at natural live stream breaks, such as after answering a question or concluding the broadcast.