How to improve the conversion rate of e-commerce live streaming? 5-dimensional analysis!

Recently, I am in charge of the e-commerce live broadcast transaction improvement project within the APP. I have brainstormed and reviewed the entire e-commerce live broadcast product design process and wrote down the brainstorming content to share with you.

The content of this article covers the entire chain analysis and growth strategy formulation of e-commerce live streaming sales from the definition of e-commerce live streaming, live streaming operation, and live streaming order conversion. I would like to welcome your comments and suggestions.

1. Why do I call live streaming with goods e-commerce live streaming?

Why is this question raised in the first place? Because I found that some of my friends do not distinguish between e-commerce live streaming and live streaming e-commerce, and think that they are both live streaming with goods, but this is not the case.

Live streaming e-commerce: It is a commercialization method of live streaming products. Various types of anchors earn commissions by selling goods through their own traffic, which is a further exploration of the value of the anchor’s own traffic.

E-commerce live streaming: a new way for e-commerce to connect with users. It builds a new trust bond between users and products through anchors, which changes the traditional e-commerce two-dimensional static display of items with pictures and texts. The display of items becomes three-dimensional and intuitive, which increases users' trust in the platform. It also adds a touch of fresh popularity when users browse the platform, helping users make consumption decisions in an entertaining way.

Moreover, the content of current live e-commerce broadcasts is mainly about introducing and selling products in a rough and direct manner, without the strong entertainment and social attributes of traditional live broadcasts.

Another reason is that some of the current anchors now have a complete supply chain system to support them. It is no longer a pure temporary sale during a live broadcast. For example, popular internet celebrity anchors such as Wei Ya and Li Jiaqi have a complete industrial chain from production-warehousing-sales-logistics.

2. Why do e-commerce live streaming?

Improvement of user experience. Provide professional guidance and recommendations to users who have no clear shopping goals, build trust between users and products, and help users complete a pleasant shopping experience.

Competition for user time. Faced with the erosion of user time by competing products and content products (information, short videos, content communities), the time users can allocate on their own platforms is getting shorter and shorter, and their attention is also decreasing. In order to allow users to have sufficient browsing time on the platform to achieve user conversion and enhance product loyalty, e-commerce platforms have added content services such as live broadcasts to give users motivation to open the app and stay in the app.

Platform traffic increased. The cost of acquiring traffic on e-commerce platforms is getting higher and higher and more and more difficult, while the traffic of live broadcast hosts themselves is a relatively large traffic pool. If the live broadcast host's traffic is directly directed to the e-commerce platform, not only will the platform traffic increase rapidly in a short period of time, but the platform will also feed back to the host to increase added value, both in terms of economy and traffic.

Capital introduction. Due to the impact of the epidemic and the country’s strong policy support, e-commerce live streaming has become a new capital growth outlet.

3. Where is the core of the growth of e-commerce live streaming?

E-commerce + live streaming can effectively drive consumption growth, so what is the core driving force for this growth? Some people may say it is e-commerce (online shopping malls, electronic payments, and logistics distribution). The Internet has long belonged to the era of basic production tools. E-commerce (online shopping malls, electronic payments, and logistics distribution) has become a basic production tool, not the core of growth.

From the user's perspective of the entire e-commerce live broadcast chain, it can be found that the protagonists of a live broadcast are people (anchors) and goods throughout. So which flywheel between people (anchors) and goods drives the growth of traffic and transactions?

Let me compare two scenarios:

Scenario 1: There are two anchors on the same platform with 50,000 followers each and comparable abilities. One is selling a famous brand watch priced at RMB 3,000 through live streaming, and the other is selling an Apple phone priced at RMB 3,000 through live streaming. They have placed advertisements on the same channel in the early stage.

Scenario 2: There are two anchors on the same platform, one with 50,000 followers and the other with 100,000 followers. Both anchors sell oranges at 10 yuan per kilogram through live streaming and have placed advertisements on the same channel in the early stage.

Prediction of live broadcast effect:

Scenario 1: The number of followers and sales during a live broadcast of selling Apple phones is definitely high, because Apple phones as a product themselves have a lot of traffic and topics compared to watches. This is why many anchors sell or give away Apple products during live broadcasts, because the traffic of the products themselves brings traffic and income to the anchors themselves.

Scenario 2: When a host with high number of followers broadcasts live, the number of followers and sales are high. This is because hosts with different traffic levels will have different purchase conversions even if they sell the same product. The traffic base has already determined the result. This is also why the sales of goods brought by different anchors in the same live broadcast vary greatly.

It can be seen from this that the growth flywheel of an e-commerce live broadcast depends on the weight of the traffic attributes of the anchor and the goods themselves. People and goods are like the two pistons of a double-bar engine, and it is the interaction between the two that brings about effective growth.

4. How to operate a live broadcast?

A live broadcast is a dynamic process from beginning to end. The effectiveness of a live broadcast depends on the number of viewers and their activity level during the entire live broadcast. Therefore, I also break down and design the operation strategy of a live broadcast based on the two indicators of number of viewers and activity level.

1. Operational strategy for increasing the number of visitors

1) Promote before broadcasting

Before the live broadcast, prepare the live broadcast platform, room number, product selection information, live broadcast plan and other content materials to create promotional posters, short videos or text content, use various self-media platforms to promote the event, and even place advertisements to increase the exposure of the anchor and the live broadcast event, to ensure that enough target audiences pay attention to it before the broadcast starts.

This is why the combination of live streaming and variety shows has become a hot topic. Through variety shows, attention is transferred to the live broadcast room and live broadcast, which improves the efficiency of planting grass and the popularity of topics, and ensures that there are enough viewers entering when the live broadcast room starts.

2) The number of viewers during the broadcast is maintained and growing

The basic strategy is to increase revenue and reduce expenditure. First, encourage sharing during the broadcast. The anchor should use his or her own appeal and marketing tools (such as sharing and sending red envelopes) to encourage viewers to share on social traffic channels such as WeChat and QQ, and quickly attract people to watch.

Second, the host needs to maintain a positive mood during the live broadcast and give surprises from time to time, such as sending out red envelopes and coupons during the broadcast or announcing that there will be big red envelopes given out at a certain time during the live broadcast, so as to entice the audience to stay longer through emotional mobilization and economic benefits.

3) Maintenance of private domain traffic after broadcasting

During the broadcast, the anchor should encourage or induce the audience to add friends or welfare groups, so that in the next sowing stage, the existing private domain traffic can be used to quickly sow grass, avoiding the duplication of energy and expenses in sowing grass.

4) Post-live broadcast to create suspense

When the live broadcast is about to end, some suspense and surprises for the next live broadcast will be broadcast to attract viewers who have already watched the show to come back and watch it next time. The number of viewers has been in a dynamic state of fluctuation during the live broadcast.

2. Activity: Growth and operation strategy of live broadcast voice

1) Distribute benefits during live broadcast

Set a voice target and encourage viewers to like and send flowers, and then give out benefits when the target is reached.

2) Live content stimulates the audience

The anchor can increase his popularity by using high-quality live content such as talent shows to encourage the audience to actively recognize and reward the anchor's charm.

5. How to increase e-commerce live streaming transaction volume?

Live broadcast transaction volume (GMV) = number of viewers * conversion rate * average order value.

1. Strategies to increase audience

• The growth and maintenance of the number of viewers during live broadcasts has been explained in the live broadcast operation methods above;
• Product sharing fission. Supports fission operations such as sharing products to get coupons and sharing to bargain, and quickly increases the number of users through products;

2. Conversion rate = product details page conversion rate * order conversion rate * payment submission success rate

The conversion rate of users in the browsing, ordering and payment paths on the platform is the decision result of the completeness and trust of the information obtained by users on the platform. The more complete the information users obtain on the platform and the stronger their trust, the higher their willingness to convert.

Therefore, the first choice is to split the commodity information elements on the platform into products, prices, and services from the user's perspective, and divide them into basic information (to attract understanding), auxiliary information (to enhance trust), and utility information (to leverage decision-making) from the user's action level.

As shown below:

The following growth strategy is formulated based on information elements and user behavior paths.

Strategies to improve conversion rate on product detail pages:

• The conversion rate increased to 100%. Users can directly select product specifications and quantities from the product list page without having to jump to the product details page, and can directly place an order and pay;
• Limited time offer. The product list displays the normal price and the exclusive price for the live broadcast channel, and the discounted price is limited in time, with a countdown to stimulate users to click;
• The goods are low-priced and limited in quantity to stimulate consumption. The product list displays the inventory quantity of low-priced or exclusive-priced products on the live broadcast channel. Give users a sense of urgency and conformity to convert them;
• Establish merchant management levels. Merchants are divided into levels such as bronze, brass, silver, gold, and diamond based on their sales, user reviews, and services. Merchant levels are used to help users select high-quality merchants and products.

Strategies to improve order conversion rate:

• Maintain product design consistency and display product list page information on the product details page;
• Create surprise discounts. Display a unique coupon redemption entrance for the live broadcast channel to stimulate user conversion through additional discounts;
• Display logistics information. Display the product's shipping location, logistics company, arrival time, etc., and use auxiliary information to strengthen the user's reasons for deciding to place an order;
• Service guarantee. Reduce users' hesitation in decision-making through comprehensive return, exchange and compensation services. Users who have experienced after-sales service can gain a strong sense of trust and loyalty to the platform;
• Authenticity guaranteed. Since it is a platform-based e-commerce service, user trust depends on platform endorsement. Strengthen users' trust in product quality through genuine product insurance, especially for high-priced products;

Submit payment success rate improvement strategy:

• Meet users' various transaction payment demands. Support third-party payment methods such as Alipay, WeChat, and UnionPay.
• Driven by preferential benefits. Add third-party payment promotions to payment methods to increase users' willingness to pay, and add payment rebates and lucky draw activity logos to payment methods to encourage users to make successful payments;
• Reduce the factors affecting users' financial pressure and support installment payment methods such as Huabei and credit card installments;
• Reduce the password verification failure rate when users pay. Access to Alipay or other third-party payment services without passwords;
• Reduce the difficulty of user interaction. Supports quick location acquisition of new users' delivery addresses to reduce manual input by users;
• Exit retention. If you give up payment and return to the order confirmation page, a pop-up window will appear to retain you, for example: Are you sure you want to give up the 10 yuan discount?

The specific optimization example is as follows:

3. Strategies to increase average order value

• Increase product prices. Increasing the price of goods here does not mean simply increasing the unit price of goods, but bundling goods into packages. For example, the minimum purchase is 2 pieces, and 4 pieces are combined as one product. The price of goods is increased by the quantity of goods, and users are given discounts for large quantities.
• Combine payment for multiple items. Issue coupons (instant discounts or discount coupons) or free shipping when the order amount reaches a certain amount. Users need to increase the transaction order price to enjoy the discount;

VI. Conclusion

E-commerce live streaming is a more vivid way for products to express information to users, a promotion method, and a means for platforms and products to enhance trust among users.

Faced with the various chaos in e-commerce live broadcasts that only seek temporary superficial data, it is a damage to the trust of the platform, merchants, and users. E-commerce platforms can only help the platform increase transaction volume by objectively describing products and sincerely helping users purchase their favorite products.

Genuine goods, a complete supply chain, considerate after-sales service, and a healthy membership system are the driving forces behind the platform's growth.

Author: A Red Heart

Source: A Red Heart

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