Today live video shopping is the main element of renewal for eCommerce. By exploiting the effectiveness and immediacy of video, live video shopping has managed to bridge the gap between the online store and the physical one.
The opportunities that live video shopping offer to digital (and non-digital) commerce are numerous. Let’s see some of them together.
What is live video shopping?
Live video shopping brings together live streaming and eCommerce giving the buyer the opportunity to buy within the video experience.
This emerging technology was first used in China, where an estimated $ 423 billion in video sales are expected by the end of 2022. In the United States, on the other hand, according to a Coresight research, video sales are expected to reach the 25 billion dollars by 2023. Non-trivial numbers!
Live video shopping in China: interesting statistics
- In China, 10% of total eCommerce sales are generated by live video shopping
- 90% of the most important brands hosted live video shopping events during Singles’ Day 2020
- Conversion rates for video purchases reach 40%
What is the difference between live video shopping and social commerce?
Social commerce Social commerce allows you to make a purchase on a social media platform such as Facebook, Instagram, TikTok, Pinterest and so on. All this happens without having to switch to a dedicated e-commerce channel, such as a website or an app. Some social platforms already offer this possibility, others are in beta and still others are thinking about how to develop the service.
Live video shopping can be used with multiple channels in the form of one-to-one or one-to-many video.
Live shopping is mainly based on the use of video, although with Shopcall Assistant it is also possible to use a chat to exchange texts and images in real time. The most common formats used for social commerce are pre-packaged images, text or videos.
Like social commerce, live streaming e-commerce supports in-channel purchases, meaning users can place an order without accessing a different site or application.
Unlike social commerce, live video shopping allows you to create a relationship between customer and seller by offering advice, support or even an immediate discount when needed.
1. Live video shopping will change eCommerce
1. The growing popularity of video as a communication channel has accelerated the rise of live video shopping
COVID-19 has paved the way for video communication, both private and professional.
And to those who think that in 2020 COVID-19 gave people no choice but to use video as a means of communication and entertainment, and that, now that restrictions are a distant memory, video will be discontinued to return to old habits , we reply that recent research suggests exactly the opposite.
Vonage’s recently published report on customer engagement shares the shocking revelation that the three most commonly used communication channels (SMS, mobile voice calls and email) are in decline, while video and text messages are growing (not sms).
Here are some data from this research:
- There was a 300% growth in the number of respondents who chose video chat as their main channel for communicating with companies.
- 3 in 5 consumers worldwide have been video chatting with businesses or service providers for more than 18 months (report released December 2021).
- There was an 83% growth among consumers who prefer video as a communication channel.
- Customers who adopted the new communication channels that became popular during the pandemic have not reverted to old habits
- Traditional channels (SMS, mobile voice calls and email) are in decline.
(Source: The Global Customer Engagement Report 2021 – Vonage)
What is the relationship between the rise of video as a communication channel and live video shopping?
During the pandemic, the only option to communicate face to face was through video. This has triggered a cultural shift in the way we use video to communicate. Although traditional means of communication are still the most used, companies should seriously consider adopting a multi-channel strategy to interact with customers in a more effective and personal way.
2. Live video shopping increases conversion rates and average receipt value
Shopping is a pleasure for most people, whether online or offline. In the case of offline, it happens to go out for an object and return home with several things. Often it is the shop assistants who make the difference with their ability to explain products and offer relevant advice.
What is missing in online shopping is precisely the possibility of taking a guided tour of the store accompanied by expert people to help understand what is best for the buyer. Live video shopping is able to make up for this lack by offering a real expert consultancy service in a digital space.
How does live video shopping work?
More often than not, the role of the seller in a store, his expertise and the relationship he manages to create with the customer are determining factors for purchases. In fact, 73% of buyers say that customer experience is an important element in their purchasing decisions.
1. With live video shopping, customers can be reassured and gain confidence
Shoppers often need explanations and reassurance about the products they are buying. Many come with doubts and questions that, if resolved, will bring them closer to your brand, retaining them and also distancing them from the competition.
The opening of the digital dialogue brings the customer closer to your brand and its values, guaranteeing them the opportunity to make purchases with confidence.
2.With live video shopping, customers will have their own personal shopper
Thanks to live video shopping, customers can sit on the sofa with a hot or cold drink and listen to an expert who guides them through the products on sale in e-commerce. Shopcall technology in addition to one-to-one video, allows image sharing, co-browsing and up-sell and cross-sell functions.
3. Live video shopping is also entertainment
Live video shopping adds a social element to online shopping. In its one-to-many version, live video shopping allows you to engage customers with exciting live shows in which to show new products and immediately collect customer impressions through chat.
3. Different formats of live video shopping suitable for different business objectives
One-to-one
One-to-one live video shopping focuses on two-way dialogue just as it would in the store. It works particularly well with Direct To Consumer brands, i.e. those brands that sell directly to the customer.
Instead of using celebrities or influencers, it is advisable to employ a specialized virtual sales team. Many hire experienced salespeople or decide to train employees who already work in the company to answer calls from contact centers or from home.
One-to-many
The one-to-many live video shopping format is a great way to interact with younger audiences. Works well with product launches and events. However, given the costs, if your following is small it may not be the most cost-effective solution for your business. We therefore recommend that you first create a large base of followers.
4. With one-to-one live video shopping you will build a relationship with customers based on trust
Social media, reviews and product images can alter the sensitive perception of shoppers. Often a negative review, poor customer service involvement or an image that does not adequately show a product is enough to dissuade customers from buying. The most faithful may be more resilient, but for how long?
In a recent research, Vonage asked respondents what element could lead them to stop buying from a company or using its services.
The general response was “the lack of human support”:
- difficult or impossible communication (46%)
- no human operators (46%)
- being stuck in automated chatbots (46%).
Consequently, when shopping for expensive, high-profile products, shoppers are more inclined to turn to the traditional store.
The conclusion is simple: the support of an expert seller can reduce the frictions of the online customer journey and build loyalty by satisfying their needs.
In a KPMG survey, respondents were asked what factors impacted brand loyalty. At the top of the list we find the quality of the product (74%), followed by 66% for value for money, while 56% for customer service and 55% for the shopping experience.
Conclusion
In summary, to foster the growth of an eCommerce it is increasingly necessary to be able to offer memorable customer experiences, especially when selling high-cost products. 82% of consumers expect immediate answers to questions and not receiving them can make them desist from purchasing or lead them to go elsewhere. Offering a one-to-one consulting service via video or chat can have a huge impact on the customer journey.
