What’s the most popular thing in the past six months? Some people will definitely say it’s live streaming sales .

But recently, many media have reported on the phenomenon of celebrities’ live streaming sales “crashes”.

A classmate asked me what I thought.

I have been holding back from writing this, after all, if the review is "a failure", no matter how rationally I write it, I cannot escape the suspicion of being a spectator.

These two days, a classmate sent me a piece of news about Li Chen supporting the AiGuang Youth Anchor Entrepreneurship Competition, which caught my attention.

Classmates said that Li Chen’s live broadcast this time was different. In addition to selling goods, he also empowered other anchors.

interesting.

To this end, I also specially asked my colleagues and friends who love shopping to communicate with each other to understand why they do this.

My friend who loves shopping said right away that they not only invited celebrities like Li Chen to empower anchors, but also directly invited celebrities to join the company.

After communicating with friends who love shopping, my view on live streaming sales has been further confirmed: live streaming will shift from focusing on traffic to focusing on conversion.

What's the meaning?

There is business logic behind everything.

Today I will share this communication and my point of view with you, hoping it will be inspiring to you.

1.Why did it fail?

To put it bluntly, the reason why celebrity live broadcasts “failed” is that there were many people watching the live broadcasts, but very few people placed orders.

Why?

There was an episode in "Shao Heng Headlines" that talked about the secrets of ace sales and introduced the Ron Popper family.

A salesman from this family said something that also revealed the reason why the live streaming of celebrities failed. He said,

A salesman can be a great actor, but an actor may not necessarily be a great salesman.

Because a salesman has to do both: make people applaud and make people willing to pay for the product, but actors are not good at the latter.

This is a matter of fact.

What's the meaning?

The first half of a salesperson's complete sales process is performance, where you have to show how good the product is.

In order to make the "performance" exciting, there must be contrast, conflict, and of course humor in your introduction.

This is a wonderful performance.

Only in this way can you attract more people to watch, which in Internet terms is traffic.

Of course, celebrities can do this without any problem, after all, it is their profession.

But when it comes to the second half of the sales pitch, celebrities aren’t very good at it.

Why?

Because, now is the time to start transformation.

You need to switch from the "performance state" to the "selling state", and you need to give clear instructions that make people pay.

But this thing that is simple in the mouth of a salesman is very difficult for a celebrity.

Celebrities’ expertise lies in creating content and generating traffic, which is their strength and their expertise.

However, traffic does not equal the ability to sell goods.

Therefore, if celebrities fail to achieve good conversion when selling goods through live streaming, the phenomenon of “many people watching but few buyers” may easily occur.

Therefore, it reminds many of our companies that if they do live streaming to sell goods, traffic is very important, and conversion is also very important.

And I think that as live streaming e-commerce develops further, conversion will become more and more important.

2.Why is conversion becoming more and more important?

Because there will be a ceiling for total traffic.

What's the meaning?

Why does WeChat launch video accounts and WeChat mini stores? That’s because more and more users are spending more and more time on apps like Tik Tok.

Therefore, in order to cope with this and increase the time users spend on WeChat, WeChat has had to make many updates in the hope of retaining users.

Essentially, all products that take up users’ time will eventually become competitors.

Because, in the end, the essence of everyone's competition for all resources is people's time.

Live streaming to sell goods also takes up a fixed period of time from users.

Many live broadcasts are from 20:00 to 22:00.

At this time, as a consumer, what are you doing?

work overtime?

Of course, there are still many people studying, chasing TV series, watching variety shows, accompanying their families and children, dining at KTV or playing games.

Therefore, live streaming is actually competing with various industries that are trying to grab people's attention during this time period.

When it comes to live streaming e-commerce, the total traffic will eventually reach a ceiling.

This is from a big trend perspective.

Then, if we only look at it from the perspective of live streaming sales, traffic will soon become increasingly scarce.

What's the meaning?

Due to the popularity of live streaming sales, Viya, Li Jiaqi and other top anchors have set an example.

It will definitely attract more and more people to become anchors and start live streaming to sell goods.

In addition, live streaming platforms like Aiguang hold events such as youth anchor entrepreneurship competitions.

Jokingly speaking, live streaming e-commerce may develop into a situation where there are more hosts than viewers.

Therefore, live streaming e-commerce will also shift from focusing on traffic to focusing on conversion.

3. How to improve conversion?

Since live streaming e-commerce will inevitably have a traffic ceiling, it will become increasingly important to help merchants and anchors improve the conversion rate of live streaming e-commerce.

So how can we improve the conversion rate of live streaming sales?

Improving conversion is like the ace salesman mentioned above. Every ace salesman has his own unique skills.

Method 1: Attract customers from dealers and then achieve conversion explosion in the live broadcast room.

For example, Gree’s Dong Mingzhu.

On April 24, Dong Mingzhu’s first live broadcast debut saw sales of less than 230,000 yuan that day.

However, by June 1, Dong Mingzhu's live streaming sales on that day had accumulated sales of 6.54 billion yuan.

How did Dong Mingzhu achieve the goal of increasing her net worth from 230,000 yuan to 6.54 billion yuan?

First of all, a large number of Gree dealers will use various methods to gather traffic offline.

For example, you can use the method of ground promotion, set up a stall in the surrounding communities, and give away peaches if you add WeChat.

Then, when the live broadcast starts, send exclusive QR codes to these users and invite them to enter the live broadcast room.

The exclusive QR code can identify which dealer brought the traffic, so that the dealer can be given a share of the money.

This is essentially the logic of live streaming distribution.

The value of a dealer is to attract traffic, while the value of a live broadcast room is conversion.

After the conversion is successful, the money will be shared with the dealer.

You can say that this method is to attract and accumulate customers from dealers to achieve conversion explosion in the live broadcast room.

Method 2: Store operations maintain private domains and live broadcast rooms achieve regular conversions.

The first method can be said to be a method to improve conversion from the anchor's end.

As a live streaming platform, such as Aiguang, does it have any methods to help merchants improve conversion rates?

A friend who loves shopping gave an example of a clothing brand.

He said that if the clothing brand has 1,000 offline stores, each store has hundreds of WeChat groups, each store has more than 10 sales staff, and each sales staff has about 3,000 to 4,000 WeChat friends.

So in this situation, what should he do as the headquarters?

The headquarters will set up a very luxurious live broadcast room and invite professional anchors to broadcast live once or twice a week.

In this way, more than 1,000 stores across the country will direct their own private traffic to this live broadcast room for conversion, and the Aiguang software can also trace back to which store brought the traffic.

In this way, the goods will go from the store where the traffic comes from.

For example, Aiguang also introduced a case of Xiaoqin’s preferred mall.

Xiaoqinyouxuan has opened an online store and independent live broadcast room for each dealer, and the headquarters provides backend support.

Including unified product listing, online store operation, customer service consultation, and marketing material design, dealers can completely independently decide the frequency of live broadcasts, promote products, and independently plan marketing activities in the live broadcast room.

In addition to improving conversions and increasing dealer revenue, this also has another benefit. That is, after going online, they can see their own data and understand the dealer's customer situation, so they can empower the dealer in a targeted manner.

This method is what live streaming platforms like Aiguang can provide to merchants, especially chain merchants, to improve conversions: the head office should prepare good content, the store operations should maintain the private domain, and the live streaming room should conduct regular conversions.

Method 3: Private domain traffic alliance exchange to maximize the use of traffic.

In order to improve conversion, as a platform, friends who love shopping also mentioned a very important method.

That is to maximize the use of traffic through private domain traffic alliance exchanges.

What's the meaning?

For example, if you sell clothes, through continuous operation, you will have some private traffic.

When you are broadcasting live, you can attract this private traffic to your live broadcast room and make conversions by displaying product information.

But customers will get tired. Once they place an order, it is impossible for them to stay in your live broadcast room all the time.

What will the customer do? Offline, he may visit other jewelry stores or cosmetics stores.

What about online?

Similarly, in Aiguang Live Room, users can switch between different live rooms by swiping up or down, just like changing channels when watching TV.

In this way, people who come to buy clothes from you may very likely slide into the live broadcast room of cosmetics after making their purchase.

By the same token, users who come to buy cosmetics may also come to your live broadcast room.

In essence, this means that you and the cosmetics live broadcast room have reached a private traffic alliance, your traffic goes to her live broadcast room, and her traffic comes to your live broadcast room.

Offline, we call this kind of cooperation cross-industry alliance.

Of course, it is impossible for there to be only you and this cosmetics live broadcast room alliance on the entire AiGuang platform. There will be many other live broadcast rooms.

All these live broadcast rooms have formed a private traffic alliance, and Aiguang will also use a series of algorithms to empower more traffic in the traffic alliance to those merchants who actively provide private traffic.

Under the premise that there is a ceiling for total traffic, merchants can use live streaming platforms such as Aiguang and the method of private domain traffic alliance to improve conversion rates.

Final Words

Finally, regarding live streaming sales, many people believe that it is a bonus and a trend, and that they should quickly enter the market to gain traffic.

Indeed, in the early days of live streaming e-commerce, when there were not many anchors but many viewers, there was indeed a bonus from this imbalance between supply and demand.

But as more and more people flock in, this bonus will soon disappear.

By then, live streaming to sell goods will most likely become a standard feature for every e-commerce company. As long as you have an online store, you should do a live streaming to sell goods from time to time.

Live streaming will also inevitably shift from focusing on traffic to focusing on conversion.

How to convert specifically?

As a live streamer, you can attract customers from dealers and then increase conversions in the live streaming room;

As a chain merchant, you can also use live streaming platforms like Aiguang to ensure that the head office provides good content, stores maintain private domains, and live streaming rooms have regular conversions;

Of course, you can also use Aiguang to realize private domain traffic alliance and improve conversion.

As for improving conversion rate, I believe there are many ways to do it. I will not list them all here. You are welcome to share your methods in the comment section if you read this article.

Finally, I have to say that 2020 has been really difficult for many businesses, with offline traffic plummeting and overseas conditions being quite chaotic.

But fortunately, this time, God closed a door and opened a window at the same time.

I wish that all businesses can take advantage of the dividends of live streaming to get out of 2020 and usher in their own tomorrow.

Author: Liu Run

Source: Liu Run (runliu-pub)