A few days back we read about the Myntra “Influencer-led Live Commerce” model test here at: https://economictimes.indiatimes.com/tech/tech-bytes/myntra-tests-influencer-led-live-commerce-model/articleshow/87571557.cms. It says that Myntra has been running a pilot with a group of experts and influencers in the domain of fashion, beauty and personal care hold live video sessions on the platform and one can purchase products directly by adding them to the cart while the session is underway – a model which has been a success in China
Outside In itself has covered the trends and potential of Live Commerce here at:
and how brands can do Live Commerce Right here at:
Livestreaming 101
E-commerce Livestreaming is a combination of entertainment, social media chat, product discovery, demonstration, Q&A, sales, market research, brand-building and more. If teleshopping was 2D, then livestreaming is 3D (meaning conversation is not one-way) – where viewers can take part in discussions with livestreamers and with each other, while the host is presenting – making it conversational in nature. Hosts become friends with people who follow them and chat, laugh and share ‘likes’
Livestreaming USP
Livestreaming is compelling medium for consumers and a powerful tool for brands because it combines a sense of urgency (thanks to time restricted deals and inventory), with the ability to buy in just a click or two and the recommendation of a ‘friend’
The intense engagement consumers feel during livestream shows does away with the traditional path to purchase. Since the streaming happens on an app, it allows a consumer to choose, pay and arrange for delivery without moving to another platform – and it can be organized by brands who may not even have physical base in the consumer’s location
10 Rules for the Road
Have a Strategy: The idea of winning a huge audience and achieving high sales has a strong appeal indeed. But consider livestreaming in the context of what the brand is trying to achieve in the longer term. Is the goal to drive awareness with consumers or to explain features of a new or complex product or sharing stories of a brand’s heritage? Depending on the objective, the approach to livestreaming has to be defined
Choose the Right Platform: It means not only choosing the right livestreaming option, but also ensuring the right sales model that allows a seamless transition from product discovery to clicking “buy” to goods delivery – as quickly and painlessly as possible
Pick the Right KOL/Presenter: It’s hard not to get impressed with an influencer having a large following, but it may be expensive for you as a brand. Looking beyond the expense even, alignment with the livestreaming goal (that we noted in Rule 1 above), a lesser-known KOL – with an expertise in the category (say) – may actually make more sense. A smaller audience may lead to a bigger impact. What is essential is that there is a strong connect between the host and the consumers; when the presenter says a product is worth buying, it really is
Help Your KOL Help You: Sending your product kit is just really the beginning of a livestreaming session with an influencer. While the KOL may not necessarily want a script – they want to maintain their own authenticity and credibility – it is essential that they are properly briefed. It means they must understand a brand’s heritage, important features/elements of a product they are talking about, and key differentiators with respect to competitor brands/products. If a product has a premium pricing, the KOL needs to know why. Check out the livestreaming range of ‘Livestreaming Royalty’ below – Viya and Lipstick King –
Provide Entertainment: There’s a lot of selling going on during a livestream, but it should not come across as a hard sell for the viewers. Livestreams become compelling when they are casual and relaxed, just like a chat with a friend. While brands may be tempted to “cut to the chase”, they should resist pushing sales too hard and remember that the presenter’s personal style has won them their following – even if it includes some novelty
Offer Value, but Don’t Be Too Cheap: KOLs want to be able to offer their followers something they can’t get anywhere else, so sticking with regular store SKUs and/or pricing may not be attractive. And, big discounts can win quick sales but it is often counter-productive damaging the brand equity while stock flies out of the warehouse. Special Bundles, Gifts, Celebrity Product Collaborations – are a great way to give shoppers a feeling that they have gotten a unique deal – without impacting margins or undermining the brand
Promote the Livestream in Advance: If no one knows about your livestream, you won’t have an audience! So don’t leave it up to chance — make sure to promote your live stream days in advance to your existing followers via email and social media. Especially cover details about what consumer can expect from your livestream – Share the topics you’ll cover, who will be joining your stream, and let followers know that you’ll be taking questions from the audience
Create (and Execute) an Engagement Plan: Brands/KOLs must prepare by anticipating some of the questions the audience might ask ahead of time. Preparation of a thorough response to those questions is ideal, but they must also be prepared to answer new questions on the fly. One can’t always anticipate everything the audience will want to know. Try best to answer what they can. There is no need to write an entire script for the live stream, but a proper outline with the topics to talk about will help keep the narrative on track throughout the broadcast
(Actually) Engaging with the Audience: Probably the most important livestreaming rule to remember is to interact with the viewers as much as possible without losing track of the topic. Interaction is paramount in live video. Unlike videos on-demand, viewers join live streams worldwide to participate instead of watching passively. That’s why live videos can create such compelling and captivating content. Real-time interaction can be a game-changer for the business. Apart from building trust, brands get to know the audience better and understand their needs
Focus on Call-to-Action: Highlight the objective of doing the livestream clearly. What do you want viewers who tune into your stream to do? Have something specific in mind, whether it is to make a purchase, donate to a cause, or reach out for a one-on-one meeting. This is the call-to-action, and it be should referenced regularly throughout the livestream. If there are no specific actions in mind for the next live stream, the viewers can be told about other ways they can keep in touch via social handles or subscription letters. If anything, try and provide them with some valuable content — a free download, an informational video — the list is endless
In Conclusion
Livestreaming gives you a window into a consumers’ psyche – according to livestreaming experts from Luxe Consultancy Zoe Zhang and Mark Yuan, who promote livestreams not just as a way to sell, but also as way to build a brand and understanding consumers better.
According to Dr. Ivy Dang of the HKU Business School, livestreaming adds a social dimension to the shopping, which can otherwise be a solitary pursuit, and lends an extra layer of excitement and spontaneity to online shopping. KOLs are there to give you some surprises, but they are surprises from someone you trust
Agreed…
References and Sources:
WPP and Alibaba Group Report – Dates with Destiny
Myntra Live Commerce Model: https://economictimes.indiatimes.com/tech/tech-bytes/myntra-tests-influencer-led-live-commerce-model/articleshow/87571557.cms
Livestreaming Best Practices: https://blogs.constantcontact.com/use-livestreaming-video/; https://manycam.com/blog/live-streaming-best-practices/