In the “e-commerce 2.0” era, the combination of online and offline sales will be a major trend, where offline salespeople can compensate for the lack of human-to-human engagement features found online. This gap is being addressed by the emergence of the live broadcast sales function. Retailers can leverage online functionalities to connect with online customers and expedite order transactions through live broadcasts. This article deconstructs how live video can expand the retail industry’s business potential, enhance the conversion rate of online orders, and raise overall turnover!
Why do online stores need a live video function?
Have you ever tried to add a product to your online shopping cart but then abandoned it without checking out? Now, consider what made you hesitate before placing an order and paying for it. Because you still have reservations about the item? Want to learn more about a product but can’t get a quick response?
Customers avoid online shopping for two main reasons: their preference for buying in brick-and-mortar establishments (68.6%) and their inability to evaluate product quality. This is according to the journal of Human Resource Management Academic Research Society in 2018. Shopping in a real store can provide satisfying customer-salesperson interaction. Additionally, customers may touch and test things, which are features that online shopping cannot provide.
As more people purchase online, introducing live video to internet retailers might alleviate the two key customer concerns mentioned above. Customers can use the “live video function” to contact offline salespeople directly when shopping online. Salespeople can learn about their customers’ behavior, orientation, wants, and expectations through their interactions with them. They can then respond quickly to meet consumers and finally take their orders.
Furthermore, interactive marketing is no longer restricted to a single observation by online store staff to identify customer needs. Based on consumers’ browsing records and personal information in online stores, salespeople may give the most tailored customer experience. Integrating the “people” element into the online sales process allows you to focus on the consumer and address problems efficiently.
Further reading: Digital Transformation: The Key to Scaling Customer Experience
What is the impact of the live video feature on conversion rates?
Although most people still prefer to purchase in physical stores, factors such as social distance, decreased business hours, and store closures have made live video broadcasting a new key economic prospect for the retail industry. The first luxury brands to implement virtual fitting room services, Hermès and Kering, saw sales rise rather than plummet. In the first quarter of 2021, overall revenue increased by 44% compared to 2020, and by 33% compared to 2019.
The showroom service is one of the reasons for the company’s continuous growth. Customers can use the live shopping feature to enjoy the service as if they were in a physical store. They can project products onto virtual characters or their own bodies with this feature. Customers can evaluate the effect of various styles and sizes on their bodies by swiping to select, alleviating any doubts. Moreover, consumers who have used the virtual fitting room feature stated they enjoyed it and would use it again.
The live video feature is similar to the virtual fitting room, except that the consumer creates the video content. Instead of being aided by a salesperson, this feature breaks the one-way online shopping procedure of the past. Furthermore, the salesperson’s responsibility is to act as a catalyst for order conversion. Salespeople can deliver timely and useful sales services when customers are on the fence about buying. You can convert your viewers into loyal customers if you can leave a lasting impact on them.
How much can the conversion rate be improved?
You may be wondering how much live video can enhance your conversion rate, allowing you to get more orders. For your reference, we prepared a compilation of data on live broadcast sales:
- Live commerce has a conversion rate of 6.5%, which is higher than photos (1%) and videos (4%).This report is according to Musheng Enterprise Management Consulting Firm
- According to Hillhouse Capital, the unit revenue generated by live shopping per hour is approximately double that of online advertising and 6 times that of television advertising. The live shopping conversion rate on Alibaba’s Tmall platform is about 10% to 20%, while the shopping conversion rate on Taobao platform is 30%.
Further reading: Increase your turnover! 2 Ways to Boost Online Sales through Interactive Marketing.
What form of “customer contact” can leave a lasting impression on customers?
1. Asking questions
2. Providing clear and valuable information
3. Maintaining brand consistency and providing a consistent consumer experience
When it comes to live video streaming, what qualities do your salespeople need?
We may strengthen the customer’s “want to buy” idea at the proper time through real-time understanding and addressing their wants. To facilitate transactions, salespeople also allow customers to place orders and pay in a short period of time.
Effective salespeople focus on highlighting product features and details
The primary goal of the live video feature is to compensate for customers’ inability to touch products in online stores. Customers may get a feel for the products by watching and hearing the live video. Therefore, salespeople must highlight the features of the product, understand customer needs and answer incoming inquiries. These acts help to increase the value of the products by reducing customer reservations about purchasing them.
Knows how to maintain brand consistency
Customers learn about a brand through multiple touchpoints. Therefore if the quality of services given online and offline are drastically different, they will be confused about the brand.
A brand image is similar to a person’s character. Everyone enjoys interacting with and trusting people who share their personalities. Customers can convey their impressions of the brand and develop a relationship when they see the company’s products or logo. Coca-Cola, for example, is associated with being trendy and energetic, whereas Nike emphasizes the idea that everyone is an athlete. These large businesses continue to attract a big number of customers today.
Building relationships with customers is easier when you have a consistent brand image. Consumers are more likely to remember and choose your brand if it has a distinctive image. If your brand image is consistent in both online and offline services, customers will be very willing to know you. Over time, you may earn their trust and ultimately establish brand loyalty.
Further reading: Transforming Business Through Live Commerce
Vimos is an omnichannel retail platform that integrates online and offline functionalities. This incredible platform enables you to fully comprehend consumer data and offer a VIP-like purchasing experience to your customers. Vimos’ addition of a live video function allows customers to start a live video and connect with offline salespeople straight away. The goal of this new function is to boost business income and improve customer service. Contact our team right away to learn more about VIMOS and how it can help you grow your sales.