Did you know some food brands have seen a 300% increase in conversions from their livestreaming efforts?
Livestreaming is becoming more popular in every industry, from video games to concerts and live events. In fact, 29% of US consumers who use social media and/or shop on the internet have taken part in a livestreamed event. And, more importantly, they’d take part again in future events. That same study showed that 16% of US consumers haven’t taken part in a livestreaming event yet, but are interested in trying.
Livestreaming in the form of live shopping, however, can be an extremely effective tool for CPG brands looking to crack new markets and increase their sales.
The 9 Benefits of Livestreaming and Live Shopping
If you remember the days of the Home Shopping Network in QVC, live shopping is pretty much that for the internet age. If you’re too young to remember the Home Shopping Network or QVC, you probably already know what live shopping is. You might be doing it right now on your phone, waiting for a discount to drop in the chat.
Livestreaming and live shopping have benefits for any brand looking to grab attention and make a real, authentic connection with its customers. And customers are loving the process. According to a Morning Consult survey, 86% of live shopping attendees said they were satisfied with the event, with 47% saying they were “very satisfied” by the experience.
1. Livestreaming creates a sense of urgency. Livestreaming is, by definition, finite. All deals and experiences that happen during the stream are gone the second the stream ends. This creates a sense of urgency that can help drive sales, as viewers feel like they need to act fast to take advantage of the limited-time offer.
2. Streaming increases engagement. One of the best benefits of any kind of streaming is that it creates a sense that you know the party you’re watching. This fosters a parasocial relationship. Livestreaming allows brands to engage with their audience and build a more meaningful connection with their customers.
3. Address customer and potential customer concerns in real time. Livestreaming allows brands to hear real-time feedback from their audience, which can help them to improve their products and services. Even better, it can help you answer questions and allay concerns from potential customers that you may have never thought about.
4. Livestreaming boosts brand awareness. Livestreaming gets your products and services in front of a larger audience. Physical stores may be limited by location, online stores by word of mouth, but a stream opens you up to that platform’s audience.
5. E-commerce websites will get more traffic. Providing links during and after your stream will get more people to check out your store.
6. Live shopping helps you stand out in a crowded market. Live shopping, when done right anyway, is fun, engaging, and a unique form of entertainment.
7. The personal connection builds customer loyalty. Livestreaming can help to build customer loyalty by giving the audience a more personal and interactive experience.
8. Online streaming can give CPG brands valuable data insights. Livestreaming gives you the opportunity to collect data insights into audience engagement. Data is always useful and can help you adjust your marketing strategy as necessary.
9. Streaming is often cost-effective. Livestreaming doesn’t have a huge overhead, generally, and many streaming services are free. In the best-case scenario, all you are paying for are the costs of the hosts, incidental graphics or other materials, and giveaways or discounts. This can help brands to find a large audience without breaking the bank.
This kind of direct-to-consumer marketing is getting bigger every year, mostly because it’s working. D2C sales in e-commerce have risen 100 billion dollars from 2019 to 2023. Billion. With a “B.”
Live Shopping in the CPG World
Livestreaming and live shopping are being leveraged by CPG brands to excellent effect. Food products are the second most popular product in live shopping, behind apparel and fashion but tied with beauty.
Albertson’s became one of the first grocery brands to do live shopping. They created a community-based digital livestreaming experience, using short, interactive videos to show off products, recipes, and other forms of food preparation.
Kit-Kat also successfully promoted the launch of their KitKat Chocolatory with a Facebook live event. The audience was able to type certain keywords directly into the chat, which created automatic notifications in their Messenger later to buy the product they specified.
Pepsi launched a massive campaign on Lazada, a popular platform in Asia. Their livestreams hit tons of viewers, showcasing new products, offering one-of-a-kind discounts, and debuting flavors exclusive to the stream.
Where Can CPG Brands Livestream?
There are more livestreaming platforms now than ever before. Facebook Live, Instagram Live, Twitch, YouTube Live, and Amazon Live are some of the most popular and easily accessible options for running a live shopping campaign.
But it isn’t always easy to pull off successfully, if you’re new to it. If you want to learn more about livestreaming and live shopping campaigns, reach out to us at Inspira Marketing anytime.
