How To Measure Success of Your Live Shopping Event
June 5, 2023
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So, you’ve realised the benefits live shopping can offer your brand, but what exactly should you be looking out for to check if it’s been a success? In this blog, we define key KPIs that you should be tracking when running a live shopping event. Different live shopping software tools offer different metrics, however, the biggest industry retailers opt for LiSA as it encompasses all of the following metrics and is the most trusted and popular live shopping softwares on the market.
There are 3 key categories you should track (Viewing, Engagement & Conversion) and we’re breaking those down even further, so you know exactly which KPIs to review and learn from. While conversions are undoubtedly important, it's crucial to broaden your perspective and consider a wide range of other KPIs beyond conversion alone. By prioritizing your target audience, fostering meaningful engagement, and continuously optimizing your content, you establish a solid foundation for achieving successful conversions.
By consistently monitoring and refining these metrics, brands can fine-tune their live shopping strategies, tailor their offerings to align with customer preferences, and ultimately drive revenue growth while fostering brand loyalty.
We get it – understanding analytics and data can be hard – so we’ve stripped away technical jargon and made it understandable for any marketer, brand or retailer. You can thank us later!
1.Viewing Metrics: Gauging Viewer Interest
Viewing metrics serve as the foundation for evaluating the success of a live shopping event. They provide valuable insights into the number of viewers, their level of interest in the brand and product, and the effectiveness of promotional efforts. Here are some essential viewing metrics you can track within your LiSA dashboard:
a) Total Viewers: This metric measures the viewership of the live shopping show, reflecting the number of individuals who tuned in. It is crucial to clarify your objective or motivation for conducting the live shopping show. For example, if your aim is to enhance brand awareness, a higher viewership would be desirable. However, if your primary goal is to drive conversions, a targeted audience, even with lower viewership, can lead to excellent conversion rates. Additionally, analyzing and comparing the total viewership of past and upcoming shows can yield valuable insights into audience trends, allowing you to make informed decisions and adjustments.
b) Avg. Concurrent Visitors: This KPI refers to the number of simultaneous viewers during a live stream, with the peak concurrent representing the highest number of viewers at any given moment. Consistency in the number of viewers throughout the show indicates sustained interest and engagement.
c) Avg. Viewing Time:How long viewers stay engaged with the live show is a crucial metric. The longer viewers remain tuned in, the higher the likelihood of them making a purchase. One of our client case studies for Charlotte Tilbury shows an impressive average with average dwell times of up to 19 minutes (70% of the show).
2.Engagement & Growth Rate: Fostering Interaction
Engagement rate metrics highlight the level of interaction and interest generated by the live shopping event. By fostering engagement, brands can not only build a loyal customer base, but also grow organically. Here are some key engagement rate metrics you can monitor with LiSA’s analytics tool:
a) Number of Interactions: This encompasses chat and product interactions, including metrics such as the number of chat messages, chat participants, and likes. By monitoring the quantity of chat messages, brands can gauge audience participation and interest. According to our client averages and industry standards, an engagement rate exceeding 40% is ideal. A higher number of chat messages signifies increased engagement and an active community. Likes, on the other hand, provide viewers with a convenient way to express their appreciation for the products and show. Elevated like counts indicate a positive response and heightened audience engagement.
b) Analysis of Chat Transcript: Analyzing the chat transcript serves multiple purposes, including optimizing product assortment and understanding audience reactions. It allows you to identify specific moments when the audience responds, track what was said during those instances, and pinpoint peaks in product engagement and chat participation. By examining the chat transcript, you can gain valuable insights into which products or topics resonate most with the audience, helping you optimize your assortment accordingly. Additionally, it provides a comprehensive view of audience sentiments and preferences, enabling you to make informed decisions and tailor your content to maximize engagement.
c) Number of Social Sharing: Social sharing plays a vital role in extending the reach of live shopping events. When viewers actively share the event on their social media platforms, via email, or through text messages, it increases the brand's exposure and introduces its products to a larger audience. An excellent example of this is AVON, which observed a remarkable 43% social sharing rate as their audience utilized the LiSA social sharing button to invite their friends. The benefit of such organic growth is particularly significant in light of escalating customer acquisition costs. By leveraging the power of social sharing, brands can expand their audience and increase awareness without incurring excessive expenses.
3.Conversion Metrics: Driving Sales and Measuring Success
Unlike with other platforms that prevent you from having first-party data, with LiSA, we ensure all live shopping activities, from shows to checkout, happen directly on your website, eliminating the need for external redirects or cart injects. This not only provides a seamless and secure shopping experience for customers but also protects their personal data, unlike social media platforms that often compromise data privacy. We can give you support on how best to track it but the 100% of data is fully in your hands, meaning you have absolute power and control over first-party data (something many other platforms prevent you from having). By leveraging LiSA, brands can collect valuable data on customers' shopping behavior and preferences. This data becomes a powerful tool for personalization, allowing you to tailor the shopping experience.
a) Conversion Rate: The conversion rate is a crucial metric for understanding the effectiveness of your live shopping events. It measures the percentage of viewers who purchased during or after the live show. A higher conversion rate indicates that your live shopping event successfully motivated viewers to take action and make a purchase. A case study from our client Charlotte Tilbury revealed conversion rates of up to 37% from their live shows, demonstrating the potential impact of well-executed live shopping events.
b) Average Order Value (AOV): This KPI measures the average amount spent per order during your live shopping event. Tracking the AOV helps you assess the effectiveness of your product offerings, product knowledge, and promotions in driving sales. Analyzing the AOV can provide valuable insights into the value customers perceive in your live shopping events and guide decisions to optimize your offerings for better results.
c) Return Rate: The return rate measures the percentage of products that were returned after a live shopping event. It is an important metric as it reflects customer satisfaction. With Live shopping return rates are lower as customers make a more educated purchase decision.
By tracking these conversion metrics, you can gain valuable insights into the success of your live shopping events, optimize your strategies, and drive meaningful results for your brand.
Are you ready to harness the Power of Live Shopping?
In the dynamic landscape of e-commerce, where competition is fierce, live shopping events offer a unique opportunity to captivate and convert customers. Armed with the power of data and insights from these metrics and understanding the product interactions and engagement of your community, you can measure the effectiveness of your live shopping events and product offerings in general. This will help you make data-driven decisions, and continuously improve your strategies to maximize engagement and drive sales.
When considering entering the realm of live shopping, it's crucial to recognize the importance of viewing, engagement, and conversion metrics. While conversions are essential, it's equally vital to consider a range of other key performance indicators (KPIs) to drive success. By constantly optimizing for your target audience, engagement levels, and content quality, you pave the way for successful conversions. These metrics will serve as your guiding light, helping you navigate this dynamic and thrilling landscape.
Remember, you don't have to navigate it alone—just talk to us and we’ll help you every step of the way to embrace the power of live shopping metrics and unlock a world of possibilities for your brand. The stage is set, the viewers await–it's time to shine and make your mark in the world of live shopping.