By now, you are probably well aware of the benefits of livestream selling and its monumental impact in China. For instance, you may have heard that Kim Kardashian sold 150,000 bottles of perfume (her entire stock of the product) in mere minutes when she appeared as a guest on a popular Chinese livestream show. But what you might not know is that there is one key benefit to livestream selling that is often overlooked—retention.
That is important because retention is the golden ticket to a successful business model. Sure, finding new customers can be both challenging and rewarding. Still, according to Annex Cloud, 82% of companies agree that retention is cheaper than acquisition, and happy and satisfied customers are 87% more likely to purchase upgrades and new services. In addition, the Harvard Business Review said that increasing customer retention by 5% can increase profits up to 95%. Those statistics provide compelling encouragement to focus on cultivating your current customer relationships. Incorporating a livestream selling strategy into your business plan is one easy way to achieve that. Why? We have broken it down into five simple reasons:
1. Eliminated Friction
“livestream shopping removes the friction associated with physical shopping but maintains important benefits like human interaction.” Shoppers can shop at any time, from anywhere, but still experience the benefits of social interaction and engagement that are missing from traditional online shopping. The easier the experience, the more likely it is to be repeated.
2. Better Communication = Fewer Returns
According to Coresight founder and CEO Deborah Weinswig, stores experience 50% lower returns when buyers purchase through a livestream event. This is likely because livestream viewers are more likely to fully understand the product before purchasing it—especially if they have had the opportunity to ask questions in real-time. And, as we all know, fewer returns mean happier customers who are more likely to keep coming back.
For example, one shopper at our recent Shopfest reached out to tell us that because she was able to ask the seller questions about a particular product’s sizing and fit, she was able to purchase the correct size the first time—and that she will be a repeat customer for life.
3. A Personal Connection
Livestream shoppers can form personal relationships with their livestream hosts and, by extension, the brands those hosts promote. And that level of intimacy drives sales. This is particularly true regarding luxury goods, which have an average 70% conversion rate when showcased on live commerce platforms.
Today’s shoppers have evolving expectations, and keeping up with those expectations is critical to eCommerce success. Gone are the days of consumers being won over by heavily edited images and ads. Instead, selling in a livestream environment creates an authentic atmosphere that draws in modern shoppers and makes them feel more comfortable.
5. Improve Differentiation
One of the most essential parts of building a brand is setting yourself apart from the crowd; livestream is an effective way to do just that. According to Boldist, “livestreams create stronger associations and memories.” This is important because people are creatures of habit and will return to what they remember.
Retail + entertainment = retailtainment. Livestreaming provides a platform for something much more than just shopping—it’s entertainment! At Shopfest 2022, we heard feedback from shoppers who watched all three nights just for the experience. There were few dull moments throughout the event, from watching Celebrity Chef David Burke torching bacon to seeing American Ninja Warriors doing backflips at a moment’s notice. Livestream shopping enables brands to create an engaging, memorable experience that draws shoppers in and keeps them coming back.
Why MARKET Does it Best
If you are ready to see what livestreaming can do for your business, then you need to check out MARKET. MARKET is a new social shopping and live commerce platform built specifically for the modern consumer brand.
- The Future of eCommerce- Livestream selling represents the Future of eCommerce—social media + a home shopping network + a traditional online storefront.
- The Next Generation of Livestream Selling- MARKET is a livestream shopping platform representing an ideal merger of technology, entertainment, and retail.
- High-Tech Selling with a Personal Touch- MARKET offers a top-shelf feature set and the most brand-friendly economics of any existing platform.
Want to learn more about how MARKET can improve your brand’s overall retention? Schedule a demo today!