How Live Video Commerce increases the conversion rate for stores?
eCommerce has entered the era of “experience shopping,” in which consumers expect online shopping to offer an experience that prioritises fun over function. Among the various tools used for experiential shopping, shoppable video is a powerful tool for customer acquisition, brand positioning, and awareness. Given such a wide range of growth-oriented possibilities, many brands and retailers stand to benefit from integrating shoppable video into their branding and marketing strategy.
Technologies evolve with time, merchants as well as consumers are now shifting to Live Video streaming which are the most effective way of demonstrating a product and its benefits to your visitors. They provide as much information as possible about your products. The entire world is revolving around numbers today so let’s look at some of the amazing stats around Live video streaming:
- 62% of consumers watch product review videos before making a purchase.
- 84% of consumers surveyed were convinced to buy a product or service after watching a brand’s video.
- 97% of video marketers reported that video increased user understanding of a product or service, and 76% reported video helped them increase sales.
- 265 million Chinese internet users buy goods via live streams starting 2020.
- The live streaming industry is expected to be valued at 184.3 billion dollar by 2027.
- 63% of Millennials watch live streaming content regularly, making them the largest group of consumers of live content.
The above facts easily depict that today Live Video Shopping is the new normal and helps to increase the conversion rate manifold.
- Live Video Streaming boosts the consumer trust: Be honest – sometimes you don’t buy an item because you’re not sure you’ll get exactly what you’re promised. What if the size is not adequate? What if the colour is different or the quality is inappropriate? These what ifs refrain us from purchasing the particular product online. Video streaming provides the proof online shoppers need to seal the deal. When you show a product in action, users can more easily imagine themselves using that product. That personalised approach by a brand towards consumers not only increases trust but also compels him to be a repeat customer of the product.
- Videos are shared more often than any other content: Even in this digital world, word of mouth has maintained its supreme place. When your friend purchases a product from a particular place, you are compelled to at least check out that space. Hence, positive reviews are always too crucial in garnering more sales. The very fact that video content is being shared on social media 1200% more times than any other content depicts the importance of live streaming in the e-commerce ecosystem.
- Videos drive more engagement than images and texts: Images create only a visual impact which persuades us up to only 50% to make a purchase but videos are both auditory and visual which grabs the attention better than any other content. It also allows us to tell a more complete story, building a narrative, building emotion, and provoking action more effectively. It is more or less like an offline shopping experience where the seller can interact with the buyer and create a liasoning. And it is a burning fact that liasoning brings in more buyers than any other strategy. Hence video streaming can increase the conversion rate for sure.
Take China as an example, where e-commerce live streaming began and has really taken off. Due to COVID-19, live streaming shopping has boomed and local e-commerce giants like JD.com have boosted sales by enabling live commerce on their platforms. In early May in China, sales via live streaming platforms reached almost $140 million, an increase of over 400 percent from 2019. Also in March, a high end brand Louis Vuitton live streamed its upcoming 2020 summer collection during a one-hour event via China’s luxury retail app and was highly successful. As demand continues to grow, businesses and solopreneurs will have no choice but to embrace this trend, though the sharpest ones are already ahead of the curve.