While over the last few articles we’ve focused on what is live commerce and how to use it for your business, today we will discuss the live commerce benefits. While live commerce is the term used to describe the activity of selling products using live video streaming, live shopping represents the one of buying online. Just like eCommerce and online shopping. The two terms represent the two ends of the same activity.
And today we will see how using Live Commerce Software improves the experience and results at both ends of the purchasing journey.
Live commerce benefits for brands and sellers
Integrating video into marketing efforts is not new, as 90 of marketers say that they are currently using it. Video has a better engagement rate and captures the customers’ attention for a longer time. A picture speaks a thousand words, so we can imagine that 1 minute of video could speak. 1000 X 60(seconds) X 30(frames/second) words, right? Better chances the answer is 42, but you see my point.
Now, let’s dive into these benefits.
Better conversion rates with live commerce
Of course, when talking about eCommerce and sales, conversion rates matter the most. Especially when the average conversion rate for electronic stores lurks around 2%. However, let’s not forget that the conversion rate represents the result of your work. A good conversion rate means great products, good marketing (organic, social, and performance), great on-site performance, good prices, customer service, and shipping options.
So how live commerce manages to increase the conversion rate up to 5 times?
As mentioned, many moving pieces put together will get you a good (or bad) conversion rate. Luckily, this new way of selling can help you in several points.
It allows you to create shorter shopping journeys, moving customers faster down the funnel. In one single session, customers can go from awareness to decision. This is enabled because you have a direct communication channel with your leads.
A live stream shopping session will automatically cover the 5 most important aspects of any product page. This is so big that we’ve allocated a separate article for this feature alone.
Live commerce benefit #2: Lower return rates
According to National Retail Federation, almost 19% of products bought online in 2020 have been returned by the customers? This means not only actual lower conversion rates but higher costs for the sellers. It’s estimated that companies lose around 3.5% of their net profit due to returns and refunds. In total, around 100 billion each year.
Customers not understanding the products are the cause for more than 50% of the returns. This is huge! This happens because it’s often hard to actually understand how the product looks, feels, and behaves based on just some pictures and a short description.
During live commerce sessions, there are two main focus areas:
a. showcasing the products so the customers have a proper understanding of them
b. answering product-related questions viewers may (and will) ask
Having a better understanding of your products/services will reduce the overall return rates. Of course, some of the return reasons cannot be covered by this new way of selling. To have a better understanding of this, let’s check the main reasons for returns.
Top 5 return reasons for products purchased online
While some reasons are out of your reach, some could be dramatically reduced. Simply by helping customers to have a better understanding of your products.
Creating a community with live commerce
Live commerce allows brands to go live and entertain their viewers. It also opens direct communication channels, helping your customers understand that their voices matter. While in short term this will automatically impact your sales, in the long term it will allow you to create a community around your business. We’ve covered how and why live commerce helps you create a community around your brand here and I strongly encourage you to read the article.
Live commerce benefits for customers
For customers, live commerce represents the perfect mix between entertainment and commerce. They get access to a show that allows them to actually purchase the showcased products. With just a few clicks of a button. But going deeper into the process, we’ve identified the 3 main benefits for them.
Customers get a better understanding of your products
Yes, return rates are frustrating for business owners as they affect their turnover. But returns are frustrating for customers as well. Imagine the disappointment of receiving your order and discovering that the products that you ordered and not what you expected. A live presentation reduces the risks of such experiences for them. By showcasing the products from different angles, explaining exactly what they are and how to use/wear/apply them will educate your customers. An educated customer will make the right decision for her or him.
Live commerce gives customers answers to their questions
A live experience also means live communication. According to studies conducted on online shoppers, 85% of them have at least one question they need to find an answer to before actually making a purchase. This is one of the main reasons for which FAQ sections are so important on product pages. However, not all of their questions will match into the same pattern. With live commerce, your team can answer those questions live, when it matters the most. It’s Live Chat for eCommerce 2.0 and will help your customers find the answers they are looking for.
Customers can ask questions during the live commerce experience
Besides the chat feature, Streams.live also comes with a “Questions” option. Here, viewers can add questions and the community can upvote or downvote them based on their relevance. The questions with the most upvotes will be displayed at the top of the list as their answers will help more people. A great technique here is to share the most 2 or 3 questions will the host and answer them not through chat but in the live video. This, combined with our “Bumped” feature will skyrocket your conversion rates.
Live commerce for concierge sales
Until recently, there was just one way of gaining access to a one-on-one shopping experience: by physically going into the store. Now, with the help of technology, you can provide such experiences remotely. Not new for the eCommerce industry, personalized shopping sessions will help your team offer the right products or services for each client.
How this improves your sales?
A study conducted by smartinsights.com on eCommerce platforms showed the following benefits:
Using a product finder tool increases the Revenue Per Visitor 2.2 times
Using live chat increases it up to 3.9 times!
Imagine including live video eCommerce sessions in your sales strategy. Your customers can be assisted through the whole journey, your team supporting them in taking the right decision to solve their problems.
Live commerce has many benefits, but to summarize I would say that what it does the best is closing the gap between online and offline retail. It offers a unique experience, where traditional eCommerce benefits from a human face, improving the way customer needs are fulfilled. For your business, which live commerce benefits are most important?