Practical methods of e-commerce live streaming!

This article will summarize the live broadcast experience of the past few months, starting from the basic details, hoping to be helpful to companies that are just preparing for live broadcast or have plans to conduct live broadcast. Today, four years have passed since 2016, which is recognized as the "first year of the mobile live streaming explosion."

If you go back to that year and ask the audience at that time what they thought about the mobile live streaming industry four years later, you will probably get the response “We saw it rise and fall.”

But when it came to 2020, the situation was obviously different. Not only did the building not collapse, but it showed a trend of becoming more and more prosperous. Since this year, many industries have been combined and demonstrated extraordinary vitality. Especially in the e-commerce field, which is frequently combined with live streaming, major IPs and platforms have introduced it and it is thriving.

The industry I’m in is considered a top-tier e-commerce industry, so naturally I’m no exception.

We have also been experimenting in the live streaming industry in recent months. This article will summarize the live streaming experience of these months, starting from the basic details, hoping to be helpful to companies that are just preparing for live streaming or have plans to conduct live streaming.

Without further ado, let’s start by talking about some key points in each step of e-commerce live streaming . The picture below is the overall process of the live broadcast that I compiled.

The following will describe the details and points of attention in each step as detailed as possible.

The simplified process is actually: product selection - strategy setting - live broadcast - data review.

1. Selection of live broadcast products

The selection of products for live streaming is the foundation of the entire live streaming, because if the products are chosen randomly, the overall sales output will be very "random".

If it is your own live broadcast, it will greatly damage the trust of the IP in the minds of users.

The points to note when selecting products for live streaming are:

1. Price/gift advantage;
2. Brand advantage;
3. High heat, high cost performance;
4. Commuting model, highly applicable to the general public;
5. Functional and convenient;
6. In special circumstances, demand goods;
7. Adjust the priority of product selection dimensions according to the live broadcast theme.

The above ranking does not represent an order of importance.

(1) “Price/gift advantage”

The first impression that most users have of live streaming is that it is cheap. In fact, this situation is not much different from the "burning money subsidies" when most new Internet business models emerge.

Therefore, in the live broadcast rooms of some top anchors, if there is a bargain, you must take it. In the future, when the live broadcast format stabilizes, live broadcasting will only be a means to get closer to users, and the price will definitely not be as low as it is now.

(2) “Brand advantage”

The advantage of big brands is that "users have a low threshold for trust in branded products", but big brands generally have strict control over prices.

Unless you are a super anchor like Li+7, it is difficult to lower the price. Therefore, it is recommended to start with gifts and try to create a cheap feeling for users.

(3) “High popularity, high cost performance”

High-profile products can be understood as internet celebrity products. Orders for internet celebrity products are generally impulsive. When users see the product in multiple places, it is easy to achieve conversion in the live broadcast room. This is a bit like the meaning of brand advertising. Multiple exposures will occupy the user's mind and wait for a suitable price to raise the call.

High cost performance is actually a combination of price anchor and product function, which is essentially an information asymmetry. For example: many substitutes for big-name cosmetics use this method.

Most of the descriptions are "Same ingredients as XX water, but the price is only xxx!!!".

The price/performance ratio immediately emerged.

(4) “Commuter model, highly applicable”

There is not much to say about this. It is mainly to attract more audiences and shorten the time it takes for users to establish the idea of ​​“I need this product”.

(5) “Strong functionality, convenient and practical”

In fact, this point is to assist the point of "cost-effectiveness". Of course, the more and the more powerful the better. It is best to add some terms that users are confused about to create a very professional feeling.

(6) “Commodities in demand under special circumstances”

For example, during the epidemic, we provided everyone with some protective supplies. A charity live broadcast to help companies in Hubei after the epidemic is over.

(7) “Adjust product selection priority based on live broadcast theme”

The point is to ensure that the products you choose are compatible with each other. For example, if the theme of your live broadcast is "Cool Summer", then it must be products related to summer. In addition, I will predict the hot-selling products in every live broadcast and sell them when there are many people. So you have to be careful when sorting the products.

2. Step 2: Determine the promotion strategy

The promotion strategy is a very important step and is an important factor in driving users to place orders.

I summarize it into the following points:

(1) High brand awareness

Build brand awareness. The brand awareness is low, so we have to focus on the product selling points, or in plain words, pick the best ones.

(2) Explain the main selling points

The theme should be clear, the selling points should be related and logical, and the buying points should be connected to each other. It is best not to have parallel selling points.

This part is the focus of oral broadcast, which must give people the feeling that no matter whether you buy it or not, I will teach you how to buy it in a way that is more suitable for you, for example, lipstick matching with skin color; what to use first and what to use later in the set, and why in this order, giving users a professional feeling. Give a man a fish and teach him how to fish.

(3) Product classification focuses should be clarified

Clothing focuses on cost-effectiveness, beauty products focus on efficacy, and health products focus on efficacy and convenience. Books and toys should be selected as sets as possible, with separate selling prices to gain user recognition. When it comes to food, focus on taste and appetite, and try as much as possible. The emphasis of different categories of goods is like the multiplication table, which everyone can memorize.

(4) Benchmark the price against products of the same quality to highlight the cost-effectiveness.

Value for money! Value for money! Value for money! If you don’t remember it, you can copy it 100 times.

(5) From the user's perspective, highlight the selling points while clearly informing the user of their pain points

Take advantage of the user's empathy and tell them what they can do after buying the product, such as opening and closing a bottle cap with one hand, or eating New Orleans chicken wings in 10 minutes. These are all scenarios that are thought out from the user's perspective.

(6) Price comparison

We will try our best to gain price advantage with friendly competitors/big anchors, etc. If we don’t have price advantage, we will offer the same price and give away free gifts. In short, he is not as good as me. Even if he is like me, she doesn't give as much as I do. Even if they give the same amount, she doesn't care about you as much as I do. In a word, my place today is the best.

(7) Promotional strategy

Promote multiple items of low-priced goods to increase the order value; if there are many gifts or the gifts are of high value, highlight the value of the gifts. The promotion strategy is mainly to create a sense of cheapness or bargaining for users.

For example, a 25% discount on two items and a second item at half price have the same effect (do the math if you don’t believe me), so the second item at half price sounds very attractive. For example, buy one get one free and buy two get one free, the second one sounds like a better value when the quantity and value of the goods you get are the same. The issues here are very profound. Students who have time can read more books on economics and psychology. It will help a lot.

3. Step 3: Live Broadcast

Points to note during live broadcast are:

(1) Product display

Don’t release all the products, but promote a few popular products to arouse users’ expectations. The purpose is to let users know in advance that there are good things, but they will not leave after buying them, thus increasing their viewing time (stickiness).

(2) The products in the live broadcast picture should be aligned with the samples as much as possible.

For example: if you give away 5 bags of laundry detergent, you should put them together and stack them up to make the user feel that it is a great value for money. The visual impact should be good, and the media attributes of live broadcast should be fully utilized.

3. Inventory

Communicate well in advance. Clearly understand whether pre-sales can be added if sold out, and how much can be added? Pre-sale delivery time.

Try to control the delivery within 1 week. There are two points to control inventory:

1. Create a scenario where goods are selling quickly, stimulate users to place orders, and take advantage of users' herd mentality.
2. Knowing the pre-sale delivery time can reduce the user's refund rate.

4. Step 4: Data Replay

Regarding the review of the data, I'm sorry I can't give you the table header.

The points of concern are as follows:

statistics--

• Total number of live viewers
• Total paid orders for live streaming
• Total paid order amount for live streaming

For comparison:

• The actual paid orders before/during/after the live broadcast of the product
• The actual amount of the order paid before/during/after the live broadcast of the product

statistics--

• Gross profit margin
• Net Profit Margin
• Return and refund rate

The ultimate goal of live streaming is to sell goods, so the first step must be to care about sales volume, profits, etc.

Of course, if the initial purpose is just for PR effect, then I didn’t say anything before.

5. Final words

E-commerce live streaming has actually already taken shape, and the threshold does not seem to be high. Many companies and individuals can do it if they want to. However, you need to think clearly whether it is suitable to do and whether you should do it as a regular form.

If you are going to do a live broadcast, then the above mentioned elements should be some basic essential elements (really, really, really basic).

Of course, a successful live broadcast can only be elevated if it has a good foundation. To achieve this, there are two points that are related to success or failure that we will talk about next time: the anchor (kol) and the supply chain.

Simply put, a clear 80/20 rule has been formed on the anchor side, with the top 20% of anchors providing 80% or even more of the live broadcast sales. Therefore, it is difficult for individual small anchors to stand out without the help of MCN agencies.

The supply chain capabilities are even more complicated, and a series of issues such as product price, quality, logistics, and after-sales service need to be resolved. The anchors do not bear these costs, and the manufacturers are unwilling to lose money to gain publicity. Small profits but quick turnover may work, but it will definitely not last forever...so the concessions given by the supply chain will disappear in the future. This is not something that can be explained in just a few words.

In short, the market is very good, but you need to be cautious when entering.

It is true that “a good wind will carry me soaring to the sky”, but one must also have a physique that can be carried by the wind.

Author:Edie

Source: Edie