5 Things that Drive Consumers to Buy Products During Live Commerce Session
According to research conducted by Coresight Research, the live stream market in the US is expected to grow to $68 million by 2026. Live commerce has gained substantial traction in China. In 2020, the live commerce market in China reached approximately $145 billion, accounting for over 7% of the country's total online sales, according to iiMedia Research. The popularity of live commerce in China has influenced its global expansion and adoption in other regions.
Live commerce enables businesses, retailers, and other stakeholders towards higher sales and growth at two levels -
- Speeds up the conversion- Most live sessions are hosted by well-known entities in the online space, namely content creators and social media influencers. These individuals already have a following and credibility in the market. As a result, the products featured during these sessions attract immediate attention from the audience. Product discovery is also happening in real time, which accelerates the buying process.
- Helps brands stand-out - Live commerce is an excellent way for brands to connect with their audience. They can directly get customer feedback and work on it to improve their product and after-sale -service. Secondly, if done right using the right messaging, discount promotion, and product aesthetics, sales can grow. The timing of the live session is also essential. For instance, live commerce hosted by brands during the festive or holiday season can help them stand out.
Live commerce sessions, where products are showcased and sold in real-time through live streaming, have gained significant growth in recent years. Several factors drive consumers to make purchases during these sessions. Here are five key drivers:
1. Real-time Demonstrations:
Real-time demonstration of products is the mainstay of live commerce. The sessions are usually conducted by influencers with a massive following and use an innovative pitch to showcase the product. Consumers have the opportunity to see products in action and witness real-time demonstrations, thus allowing them to understand the product's features, functionality, and benefits.
In the case of beauty and fashion, the content creator spearheading the session shows to the customers how to use the makeup or style the clothing. The ability to see the product being used and its performance can instill confidence and address any doubts or questions consumers may have, leading to an increased likelihood of making a purchase. Since the demo and product showcasing are all happening in real-time, customers are driven towards impulsive buying.
2. Interactive Q&A and Engagement:
With interactive elements such as Q&A sessions, live chats, and comments incorporated in live streaming commerce, customers are directly engaged with the host or influencer.
This direct interaction allows consumers to ask specific questions about the product, seek clarifications, and receive immediate responses. This engagement helps build trust and provides personalized attention, which can significantly influence consumers' purchase decisions.
3. Limited-time Offers and Exclusive Deals:
Many live commerce sessions offer limited-time promotions, exclusive deals, or discounts specifically for participants during the session. These time-sensitive offers create a sense of urgency and FOMO (fear of missing out) among consumers, motivating them to make a purchase to take advantage of the special deals. The combination of live demonstrations and exclusive offers enhances the value proposition for consumers.
4. Social Proof and Influencer Recommendations:
During live e-commerce, influencers or experts who endorse and recommend the products that are being showcased during the session have the goodwill and credibility of their audience. Influencers have built trust and credibility with their audience, and their recommendations carry weight. When consumers witness influencers using and endorsing products in real time, it creates a sense of social proof, indicating that the products are valuable and trustworthy. This social proof can significantly influence consumers' purchasing decisions during live commerce sessions.
5. Convenience and Seamless Shopping Experience:
Live commerce sessions provide consumers with a seamless shopping experience. With a simple click or tap, consumers can purchase products they see in real-time without leaving the live stream. The convenience of immediate access to product information, real-time demonstrations, and one-click purchasing make the buying process quick and effortless. This frictionless experience eliminates barriers and encourages impulse purchases.
These factors collectively contribute to the success of live commerce sessions and drive consumers to make purchases. By leveraging the power of real-time demonstrations, interactive engagement, limited-time offers, social proof, and a seamless shopping experience, brands, and influencers can maximize their sales potential during live commerce sessions. However, the landscape is continuously evolving as more and more brands and retailers are adopting this sales channel. Live commerce is also shaping the way people will shop in the future.