March 6, 2022
Five Ways Live Shopping Reduces Business Costs
If you’re considering launching Live Shopping on your site or scaling up your existing initiatives, you might be expecting an expensive venture.
We're here to reassure you that although Live Shopping does require investment, the long term benefits speak for themselves.
As well as reliable conversion and engagement, Live Shopping is proven to reduce costs in key areas of business.
Live Shopping reduces returns
According to Coresight research and even reports from Bambuser’s customers – returns drop by 50% on items bought via Live Shopping.
This is because Live Shopping creates the opportunity for consumers to view products in vivid detail. Seeing them on-screen and asking the host to showcase and explain specific details, makes the online shopping experience closer to a physical shopping experience than any other available. The host can clearly demonstrate the scale, fit functionalities, colors and so much more.
Live Shopping creates opportunities for consumers to view products in vivid detail.
Also, the ability for viewers to ask questions to get the additional information they need reassures them that the purchase is the right decision, therefore reducing the likelihood of the item being returned.
Needless to say, reduced returns will have a significant impact on your expenses when it comes to processing and handling as well as inventory management.
Live Shopping builds customer loyalty
Live Shopping also enables you to offer deeply personalized experiences that ultimately lead to more loyal customers.
Loyal customers mean lower business costs, especially in marketing, and they also tend to directly increase revenue. In fact, reports have suggested that loyal customers can be up to 22 times more valuable than new customers.
We have also seen that it can cost five times more to acquire a new customer than to retain an existing one, and increasing your customer retention 5% can increase your profits from 25% to a whopping 95%.
Utilizing Live Shopping to nurture your existing relationships with customers is a sure way to increase their lifetime value and ultimately lower your marketing costs.
Live Shopping creates dialogue by nature and is far more engaging than any other ecommerce content out there.
Live Shopping can lower ad spend
Live Shopping is human dialogue by nature, which is far more engaging than any other ecommerce content out there. You can use this to your advantage by repurposing your recordings as paid ads.
We’ve seen customers do this on leading social platforms and report that repurposed Live Shopping content outperforms traditional ad posts significantly. The human nature behind the content promotes heavy engagement, which is then rewarded by the algorithms that keep it front and center.
In short, Live Shopping content creates can lower your CPM.
Live Shopping shortens the sales funnel
Live Shopping is well suited to qualify leads and shorten the consideration phase of sales funnels, especially for big ticket items such as luxury goods, cars, high priced consumer electronics and real estate. It allows you to meet customers’ needs by quickly providing the exact information they need, as well as emotional reassurance.
Conversion may not happen for every customer immediately within a Live Shopping event, but initiating a dialogue with them early in their decision making process enrolls them in your ecosystem. Ultimately customers convert much faster, which in-turn reduces the cost of the customer journey by reducing the amount of touch points.
You can also effectively shorten your sales funnel with Bambuser’s second solution. One-to-One enables your sales staff to invite customers into private, face-to-face shoppable video calls to offer deeply personalized advice and curated selections of products.
Live Shopping helps shift leftover stock
This is a secondary benefit that our customers come to love. Live Shopping is a great way of creating a buzz and a sense of urgency when you need it, especially around sale events when you’re trying to sell leftover stock or off-season goods.
Instead of only introducing discounted prices, turn your sale events into profitable and dependable aspects of your retail strategy by featuring them in your Live Shopping channel. Not only will you free up storage for your in-season products, you’ll also mitigate losses by not having to write off the value of your excess inventory.
Many of our customers use this method with great success by publishing time-restricted sale events or even hosting auctions. It’s fun, engaging and good for business.