How live interactive video drives the next phase of eCommerce

Shoppable video is an exciting mix of entertainment and eCommerce. Pioneered by Chinese online giant Alibaba, it marks the beginning of a new era of eCommerce and provides opportunities for broadcasters, online retailers and brands all around the world.

Over the last 25 years, eCommerce has been steadily developing. It all started with the launch of Amazon in 1994, when the company began selling books online. The ten years that followed were focused heavily on enabling consumers to buy products online, with e-tailers laying the groundwork: websites with shopping baskets, safe payment systems, warehousing, and shipping. On the front end, we cycled through Web 1.0 and Web 2.0. The first product categories that saw substantial online sales were books, travel, and games/DVD’s.

The next phase was ushered in by Apple with the introduction of the first iPhone in 2007. Meanwhile, social media was beginning to make its way into the mainstream: this was the age of Social Mobile, or SoMo. Online shopping behaviour changed. People started buying products from their mobile phones, and social media was being used as key driver to direct traffic to online shops.

In the decade that followed, smartphones became our primary devices for accessing the internet. Boasting a larger screen, faster connection, and faster processor, the smartphone had evolved into a full-lown multimedia device. These technological advancements are a substantial part of the SoMo landscape.

We are only just beginning to scratch the surface of online experience shopping, but we can already identify at least three critical success factors: (1) entertaining video narrative that sells, (2) frictionless conversion, and (3) a strong commercial proposition.

Most marketing efforts are designed to trigger consumers to seek more information and eventually purchase a product. Shoppable video has this function integrated within the entertaining elements: if the content offers no entertainment value, people will not consume the content. Most people are skipping pre-roll ads or changing channels during commercial breaks, which means that only a small percentage of the potential audience is actually viewing the content. By combining the right types of entertainment to attract your target group, retailers and brands can increase their viewership and create an even bigger opportunity to convert people from viewers into buyers.

To get there, you need to provide just enough information to entice people to explore the product further without feeling like they are part of an infomercial. The next step in the funnel depends on the product that is being sold. For example, a customer looking for a jacket can be directed to a product page, but when you’re looking to buy a car, the next step will probably be to book an appointment at the dealership. It is important to be aware of these different product categories to customize the funnel steps as much as possible for different product categories and user types. We will elaborate on this in an upcoming blog post.

Many factors play a role in converting a potential customer into a paying customer. You need to reach the consumer, provide relevant content, trigger the consumer’s desire to purchase a product, and enable him or her to buy it on the spot. This process should be seamless in order to convert as many people as possible. Shoppable video offers opportunities to significantly increase your reach and make the conversion process as easy as possible.

Interactivity helps break down consumers’ resistance to purchase. Features such as chats, votes, and ratings enable people to co-create content and enhance their own experience. Interactivity encourages consumers to lean in and shift out of their passive consumption mode.

For a video to be commercially relevant, it needs a strong selling proposition that suits the content. It should be commercial without being too salesy; consumers should not get the feeling that they are part of an infomercial. The proposition should therefore be unique, relevant, urgent, and exciting. For more tips on how to shape strong commercial propositions, keep an eye on this blog series.

This was only the beginning — a first glance at the new era of eCommerce, and the integral role that shoppable video plays in its transformation. Stay tuned for upcoming posts in this series, in which we will take a closer look at industry best practices and put our newfound knowledge into action. Or contact me to learn more.

The first in a series of blog posts in which we outline the advantages of shoppable video and what it can do for your business. This article was co-authored by Ruben Rouwhof.

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