If you're just starting with live shopping, you might think that the number of viewers is the only important number to track. Let's be real - whether you have 10,000 viewers or 10 viewers to your live stream event - it's a big deal! Imagine if you had a retail store, and 10 people walked in at once. That's the power of live shopping; humanizing your online business to tens, hundreds, or thousands of shoppers.
Beyond viewership, it's important to consider all the other relevant metrics that are important to track to understand the success of your live shopping events and the impacts these events have on your ecommerce business.
In this post, we'll be talking about Key Performance Indicators (KPIs) that are most important to live shopping applications in your online store - metrics related to viewership, engagement, conversion and more.
Measuring conversion rates on Shopify is the ultimate way to track your ecommerce store’s effort and success. Conversion rates allow you to track performance, areas of improvement, and your return on investment (ROI). The higher the rate is, the higher the value you will be receiving. So how do you calculate conversion rates?
Conversion rate is the percentage of desired actions completed by your desired users.
In an online store, this could be the number of online store visitors who completed a purchase. Therefore, the conversion rate would be the number of completed purchases (desired action) divided by the total number of online store visitors (desired users). For example, if 200 people visited your online store and 3 of them completed purchases, then your conversion rate would be 3 / 200 x 100% = 1.5%.
By observing conversion rates, you can better understand how individuals interact with your online store, pass through your sales funnel, and ultimately, your cost of customer acquisition.
Unfortunately, having a high conversion rate isn't as straightforward as it sounds. On average, Shopify merchants have a conversion rate on mobile is 0.9%, and 1.4% on desktop. As an ecommerce retailer, it can be hard to pinpoint what areas you're lacking in and what you can do to improve. From personal experience, one of the best ways to increase your conversion rate is engaging with your customers and making the shopping experience as enjoyable as possible. Live shopping is a great solution for retailers searching for simple ways to do just that.
Live shopping brings back the personalized experience of shopping into your ecommerce retail store. Host livestream events which allow you to share products with your customers, answer questions, and feature key items you'd like to promote. Not only will this increase traffic to your store, it will create awareness and create a sense of excitement and exclusivity for the products showcased during your event.
Still not convinced this could help your store? Based on a number of live shopping solutions currently in the market, live shopping can increase conversion rates to over 16% during a live shopping event, that's more than a 10x increase from the average conversion rate.
Key performance indicators or KPIs are another great way to track your ecommerce store’s success, particularly when hosting live shopping events.
Here at Shop Studio Live, we want our merchants to have access to useful data and be able to track their live shopping success. Our application measured a variety of metrics across viewership, engagement, conversion and more! Here is a list of the metrics we value most and their importance to you as a merchant.
You might think - "Well, if I'm engaging with customers, why should I worry about all of these KPIs?" Opportunity cost! As a merchant, you always want to maximize your sales and profit - and understanding your KPIs is critical for your success in ecommerce and live shopping.
For example, if your viewership and engagement (viewers, chat messages, chat users) are high but Adds to Cart are low, then your shoppers might consider your prices too high. While they're happy watching, they have no interest in buying.
Another example, if Adds to Cart are high but Orders Complete/Revenue Generated is low, then your shoppers might have concerns about shipping rates or delivery time, or have issues with the checkout process.
Having these KPIs allows you to better understand your customers as a whole and consider ways you can optimize your engagement and sales in your online store.
What metric is the most important for your business?
Here at Shop Studio Live, instead of charging a commission on viewers or product clicks, we have a straightforward monthly subscription. This way, you strive high without having to spend an extra penny. Host as many events as you want on your store, no restrictions or added fees.
If you’ve been struggling with conversion rates or want to push your business to the next level, incorporating live shopping into your marketing and sales strategy could be a great next step. Using Shop Studio Live, you can increase your conversion rate and engage with your customers like never before!
And if you’re interested in learning more about live shopping - sign up for our 14-day free trial to start live streaming.