Live commerce is an ever-evolving entity—as new technologies and opportunities arise, the capabilities of live commerce shift and change.
That’s why we love it! It grows and moves with your brand and can fit whatever needs may pop up as you scale your commerce business.
But because things are in a state of constant flux, it’s important to know what’s going on. We’re breaking down the ABCs of live streaming so that you can stay on top of the latest trends and know how to get the most out of this $35 billion industry.
Everything you need to know about live commerce
Business-to-business, or B2B, is when a commercial transaction occurs between two businesses. So, one business is selling directly to another business. For example, a company that sells energy drinks to other stores and wholesalers is running a B2B business model.
Business-to-consumer, or direct-to-consumer, is when a business sells products directly to the customer—there is no third-party retailer or wholesaler involved. For example, when you go online and purchase a new shirt from a clothing retailer, that retailer is running a B2C business model.
The click-through rate (CTR) is a measure of how many people visited a web page through a particular advertisement or hyperlink. In live commerce, it can be used in a myriad of ways—it can show you how many people came to your stream via certain avenues, but also gives you a read on how many people clicked through to your products during the stream.
The conversion rate is the percentage of users who take a desired action—signing up for something, making a purchase, and even watching your live stream can all be important conversion rates for your business. For example, if you have 10,000 people tune in to your live stream, and 2,000 of those people make a purchase during the stream, then your conversion rate would be 20% (2,000/10,000*100 = 20%).
E-commerce is when products are bought and sold electronically using the internet.
A marketing tactic to encourage people to engage with a product or service, gamification is the strategic attempt to use typical elements of gameplay in other ways to motivate and engage buyers. Using point scoring, competition, and even “game talk” can help to keep an audience interested.
From micro-influencers with under 50k followers to mega influencers boasting millions of followers, influencers have a pre-existing audience that makes them excellent partners in promoting your live stream. Find an influencer in your niche who targets your ideal client and tap into their specialized knowledge and built-in authority.
Key Performance Indicators
Key performance indicators, or KPIs, are quantifiable measures of performance. KPIs can be used to evaluate the success of your live stream from a variety of angles—you can set KPIs for everything from your marketing efforts to actual sales. They also help you make better decisions as you move forward with your next live commerce event.
Live chat is when you can communicate with your audience directly during the live stream. This could be through live comments or by bringing audience members into the actual live stream.
Live shopping, or live commerce, is a live transmission of an event over the internet where audience members can shop the products that are being shown during the live video.
Live stream is a live transmission of an event over the internet. Whether it is a concert, FAQ session, webinar, or vlog if it is happening and being streamed to the internet at the same time, it is a live stream.
Omnichannel is a kind of retail that combines a variety of shopping methods to create a seamless experience for its customers. For example, if you have an e-commerce store, a brick-and-mortar store, plus you sell via live shopping, you’re offering your customers an omnichannel experience.
In live shopping, one-to-one shopping is when you enter a live stream with a salesperson and explore their products one-on-one—this is a private event akin to how a personal shopper would function in a physical store.
Online marketplaces are a type of e-commerce platform where products are sold by multiple third parties. They are the biggest source of multichannel e-commerce. Think Etsy, Amazon, and Alibaba.
Owned and operated
Owned and operated, or O&O, in live streaming refers to the channels that a business owner owns and operates. This usually refers to their website compared to their social channels, for example, which they do not own and therefore can’t fully control.
A kind of e-commerce, social commerce is when you use social media to sell products. This could involve using their proprietary shop functionalities, but could also refer to commerce that involves social media in less concrete terms. If it assists in the online buying and selling of products and it starts on social media, it is considered social commerce.
Ready to jump into the world of live shopping and experience how it can transform your business? Then you’re ready for Stage TEN. With integrated in-show shopping, our partners have doubled their sales, boosted their engagement rates by 70%+, and experienced conversion rates of at least 7%.
Contact us today to explore how your brand can partner with us. Or get started on your own—create your free account now and go live!