WEBINARS
26
min read time
June 5, 2024

Podcast Episode: How Livestream Shopping Gives Love to the Algorithm

Our CEO, Christian Degn Vester and CMO, Corey Morris were recently interviewed by Dawn Chubai, a former TV home shopping host, award-winning broadcaster, and the principal of Live Selling School. This podcast is designed for retailers looking to reach and engage more customers in innovative ways, especially as we move further into the digital age.

Podcast Episode: How Livestream Shopping Gives Love to the Algorithm
Table of Contents

Introduction

Our CMO, Corey Morris, was recently interviewed by Dawn Chubai, a former TV home shopping host, award-winning broadcaster, and the principal of Live Selling School. This podcast is designed for retailers looking to reach and engage more customers in innovative ways, especially as we move further into the digital age. 

Why Live Shopping

Leveraging Social Media

Corey Morris emphasizes the significance of live shopping as a marketing tool. Many e-commerce managers find live shopping transformative, as it allows them to effectively tap into their social media following. Traditional methods often focus on driving traffic to websites, but live shopping brings the website and sales team directly to the social media community.

Conversion Rates

One of the most compelling aspects of live shopping is its high conversion rates. Traditional e-commerce typically sees a conversion rate of around 2.5%. In contrast, live shopping events can achieve conversion rates of up to 60%. This dramatic increase underscores the effectiveness of engaging customers through live interaction.

Live Shopping vs. Traditional E-Commerce

Customer Engagement

In physical stores, a high conversion rate might be celebrated if many customers walk out with purchases. However, live shopping events can attract thousands of viewers, with many ready to make purchases. For example, a recent live shopping event saw 4,000 people lined up online before it even started, reaching nearly 10,000 viewers within the first five minutes.

High Intent Purchases

Customers attending live shopping events are often highly motivated to buy. Unlike casual mall shoppers, these viewers have a specific interest and are more likely to convert into buyers. The theme and promotion of the event act as hooks, drawing in customers who are already primed to make a purchase.

Reducing Return Rates

Informed Purchases

Traditional e-commerce return rates range from 20% to 30%, with some large players like Zalando seeing rates as high as 50%. However, live shopping significantly reduces return rates to below 10%. This reduction is largely due to the interactive nature of live shopping, where customers can ask questions and see products demonstrated in real-time, leading to more informed purchasing decisions.

The Role of the Host

A well-prepared host plays a crucial role in this process. By providing detailed, honest information about the products, hosts help customers make the right choices, thereby reducing the likelihood of returns. This approach contrasts with a hard-sell technique that might push unsuitable products onto customers, resulting in higher return rates.

The Personal Connection

Building Trust

Live shopping creates a personal connection that traditional e-commerce often lacks. Customers can interact with real people, ask questions, and receive immediate responses. This interaction builds trust, which is a significant barrier in traditional e-commerce where customers might be unsure about the reliability of the seller.

Authentic Commerce

At Sprii, the focus is on authentic commerce. While some competitors are exploring AI to replace human hosts, Sprii believes in the value of human interaction. Authentic Commerce means leveraging the personal stories and genuine enthusiasm of company representatives to connect with customers.

The Future of Live Shopping

Enhanced Customer Experience

Live shopping offers a unique blend of personal engagement and convenience. Customers spend significantly more time with the brand during live shopping events, with average engagement times of up to 20 minutes compared to less than one minute on a typical website visit. This extended interaction fosters a deeper connection and a more memorable shopping experience.

The Hybrid Model

The concept of "phygital" – blending physical and digital experiences – is becoming more relevant. Live shopping bridges the gap between physical stores and e-commerce websites, creating a cohesive shopping experience across all platforms. This model is particularly valuable as it becomes increasingly challenging to drive traffic to traditional retail locations.

Conclusion

Live stream shopping represents the future of retail, offering unparalleled opportunities for engagement and conversion. By combining the reach of digital platforms with the personal touch of live interaction, retailers can create a powerful new way to connect with customers.

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