The way consumers shop is constantly evolving, and the consumer electronics industry is no exception. With the rise of technology, shopping online has become the norm for many customers, but the human touch still plays an important role in the purchasing decision. As the demand for personal and convenient shopping experiences continues to grow, live video shopping has emerged as a solution that combines the best of both worlds. By allowing customers to shop virtually face-to-face with a sales representative, live video shopping provides a personal touch that is often lacking in traditional online shopping experiences. However, many retailers are still implementing live chat on their e-commerce websites with the idea of it resulting in increased conversion rates, average order value, and customer satisfaction. In fact, live one-to-one video shopping attracts even greater improvements in conversion rates, average order value, and customer satisfaction.
In this article, we will cover the following:
Consumer electronics: Basket abandonment rates
Basket abandonment rates are a common challenge faced by online retailers, and the consumer electronics industry is no exception. In fact, the consumer electronics industry has been found to have a 73.28% basket abandonment rate, for reasons such as:
- High prices
- Lack of product information
- Complex checkout processes
- Unexpected shipping costs and fees
These basket abandonment rates can have negative effects on the conversion rates, average order value, and customer satisfaction in the industry. When a customer abandons their shopping basket, it means that they have shown a strong intent to purchase, but for some reason, they did not complete the transaction. As a result, businesses lose out on potential revenue and lower their conversion rates.
Basket abandonment rates can also have a direct impact on AOV. If customers frequently abandon their baskets, it means that they are not completing their transactions and may be purchasing fewer items or spending less money per transaction. This can result in a lower AOV for the business.
Furthermore, when customers abandon their shopping baskets, it may be an indication that they have encountered an issue or frustration that prevented them from completing their purchase. This can result in a poor user experience, and customers may feel frustrated or dissatisfied with the shopping process.
Conversational commerce: How it relates to live chat
Conversational commerce is the ability for retailers to interact with their customers via online conversational channels. This enables customers to communicate via live video shopping, live chat, and social media channels. It gives e-commerce companies a one-to-one sales channel and customers the personalised shopping journey they now expect from brands via messaging apps, transforming customer service into a digital experience.
Find out more about conversational commerce, and the benefits businesses see after implementing it.
What is live chat?
According to HubSpot, live chat is a feature on a website or online platform that allows users to communicate with a customer service representative or support staff in real-time. Users typically initiate a live chat session by clicking on a “live chat” button or icon on the website and are then connected with a representative through a chat interface. The representative can answer questions, provide assistance, and resolve issues for the user, all in real-time. The goal of live chat is to provide users with quick and convenient support, while also increasing efficiency and reducing response time for customer service teams.
Benefits of live chat
Across retail sectors, customers often have questions and concerns about the products they purchase. Live chat can provide an immediate and convenient way for customers to get the assistance they need, which can lead to higher customer satisfaction. For example, if a customer is having trouble setting up a new device, they can use live chat to get instant assistance from a support agent. This can help the customer get up and running quickly and reduce frustration, leading to higher customer satisfaction rates.
Additionally, in the consumer electronics industry, customers are often looking for the latest and greatest technology. Live chat can help businesses showcase their products and provide customers with personalised recommendations and promotions. For example, a customer who is looking for a new smartphone may be more likely to make a purchase if they can get personalised recommendations based on their usage and preferences. Live chat can also help businesses close more sales by providing customers with instant answers to their questions and concerns.
Customer preferences and online shopping behaviours can change quickly. Live chat can provide businesses with valuable insights into customer needs and pain points, which can be used to improve products and services. If customers are having trouble with a particular feature of a product, businesses can use this feedback to improve the product or create additional training resources for customers. Similarly, if customers are frequently asking the same questions about a product, businesses can create an FAQ section to address these questions and reduce customer support costs.
Disadvantages of use
When it comes to consumer electronics retail, live chat is a popular way for customers to receive support and help with their purchases. However, there are some disadvantages to using live chat for this industry. One of the main disadvantages is the potential lack of technical expertise that live chat representatives may have. In the electronics industry, products can be complex, and customers may have specific questions that require in-depth knowledge. If the live chat representative is not able to answer these questions, it can lead to frustration for the customer and a negative experience. This is especially difficult if a retailer is using chatbots on their websites, as they have limited understanding and ability to handle complex or unusual customer inquiries. Chatbots rely on pre-programmed scripts and algorithms to respond to customer inquiries, and they may not be able to understand or respond to more nuanced or unexpected questions.
A key disadvantage of live chat is the limited product information that can be shared. With live chat, it can be difficult to share detailed specifications, photos, and videos of products, which are important factors in the purchasing decision for many customers. Live demonstrations of products can also be challenging through live chat, which can be especially important in the electronics industry.
For customers with slow typing speeds or language barriers, live chat may not be the best option, as it relies heavily on written communication. In these cases, a more personal and interactive approach, such as live video shopping, will be a better fit. In fact, according to TrueList, 47% of customers have experienced a negative live chat experience in the past month.
Conversational commerce: How it relates to live video shopping
When it comes to the relationship between conversational commerce and live video shopping, live video shopping can be seen as an extension of conversational commerce. In both cases, businesses are leveraging real-time interactions with customers to drive sales and provide a better customer experience. Live video shopping can be used in conjunction with conversational commerce tools like live chat or messaging to provide a more engaging and interactive shopping experience. For example, during a live video shopping event, customers could use live chat to ask questions about products or request recommendations from the host. The host could respond in real-time, helping the customer find the products that best meet their needs.
By combining conversational commerce with live video shopping, businesses can create a more immersive and engaging shopping experience for their customers. This can lead to higher sales and customer satisfaction, as well as a more loyal customer base. Additionally, the data generated from these interactions can be used to inform future marketing and product development efforts, further improving the customer experience, and driving business growth.
Have a read on why live video shopping is the best practice for conversational commerce.
Live chat compared to live video shopping
While live chat has its benefits, live video shopping offers several advantages that make it a more appealing option for the electronics industry.
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Live video shopping has the ability to provide live demonstrations of products
- According to a study by the National Retail Federation, 90% of customers find video helpful in making purchasing decisions, and in the electronics industry, seeing a product in action can be crucial. Live video shopping allows customers to get a better understanding of the features and capabilities of the product, helping to reduce the risk of returns and increase customer satisfaction
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Live video shopping also creates a more personal and interactive experience for customers
- Personalised recommendations and product suggestions are more relevant to the individual customer, increasing the chances that they will find what they’re looking for and making them more likely to purchase
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Live video shopping provides an opportunity to share detailed product information
- Sharing information such as specifications, photos, and videos, can be critical in the purchasing decision for many customers
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Live video shopping also provides customers with access to a representative who has technical expertise in the products being sold
- This reduces the risk of frustration and negative customer experiences, as customers are able to receive the support, they need from someone who understands the products. According to PwC, 75% of consumers will still choose to interact with a real person even as the technology for automated solutions improves
These advantages of live video shopping over live chat also result in reduced basket abandonment rates. Find out more how e-commerce personalisation techniques result in increased conversion rates and higher average order values.
Conversational Commerce: How live video shopping and chat complement each other
Live video shopping and chat complement each other within the framework of conversational commerce. With the limitations that live chat holds, such as pre-programmed scripts and lack of in-depth product information, live video shopping offers solutions to these.
In the consumer electronics industry in particular, the live chat function has a limitation on the questions and customer service queries that can be answered over text form. Consumer electronics products can be complex, and customers may have technical questions that require a deeper level of expertise to answer. AI generated chatbots in particular may not always have the technical knowledge to provide a satisfactory answer, especially for more specialised products. For example, a customer may be interested in buying a new computer for graphic design work and have a specific question about the graphics card. A live chat agent may not have the necessary technical knowledge to answer that question, leading to frustration and potentially lost sales.
Customers may be interested in comparing two or more products side-by-side to make an informed purchase decision. While live chat agents can provide information about individual products, it can be difficult to provide a comprehensive comparison through text-based chat. This can be especially challenging for customers who are unfamiliar with the products or technical jargon. For example, a customer may want to compare two different types of digital cameras and have questions about features like sensor size, image stabilisation, and autofocus. Without a visual aid or detailed explanation, it can be difficult to effectively communicate these differences through live chat.
On the contrary to this, live video shopping allows retail experts to answer in-depth questions, as well as coherently compare products with the customer. This is because a host or influencer is typically on-hand to showcase and discuss the products in detail. This means that customers can ask technical questions and receive answers in real-time, without having to rely on the limited knowledge of a live chat agent, or AI generated responses. In a live video shopping event, a host who is knowledgeable about the product can provide detailed answers and even demonstrate the features of the product in question.
Live video shopping can also be an effective way to provide customers with detailed product comparisons. A host can showcase and compare two or more products side-by-side, highlighting the similarities and differences between them. This type of visual comparison can be more effective than trying to communicate the differences through text-based chat. For example, a customer interested in purchasing a new laptop may have questions about the difference between two different models. In a live video shopping event, a host could demonstrate the features of both laptops, showcase their differences side-by-side, and help the customer make an informed purchase decision.
Why live one-to-one video shopping is the best solution to increase conversion rates, average order value, and customer satisfaction
When it comes to selling consumer electronics products, one-to-one live video shopping provides several advantages over regular live video shopping and live chat. Compared to live chat, live one-to-one video shopping offers a more personal, immersive, and engaging shopping experience. By providing customers with a face-to-face interaction with a sales representative, live one-to-one video shopping can help to increase conversion rates, average order value, and customer satisfaction in the consumer electronics industry.
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Improved customer experience
- Live one-to-one video shopping offers a face-to-face interaction with a sales representative, providing customers with a more personal and immersive shopping experience. This can help to build trust and increase customer satisfaction, leading to higher conversion rates and larger average order values.
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Increased engagement
- Live one-to-one video shopping provides customers with the opportunity to ask questions, receive product demonstrations, and receive real-time support. This increased engagement can lead to increased sales and higher average order values.
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Increased relevance
- Live one-to-one video shopping allows sales representatives to tailor product recommendations and suggestions to the individual customer’s needs and preferences, increasing the relevance of the shopping experience and making customers more likely to purchase. A study by Zendesk found that 68% of consumers expect experiences to be personalised.
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Improved customer understanding
- Live one-to-one video shopping enables sales representatives to better understand the customer’s needs and preferences, making it easier to provide personalised recommendations and support. According to a survey by Salesforce, 66% of customers expect companies to understand their unique needs and expectations. This can lead to increased sales and higher average order values.
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Increased trust
- Live one-to-one video shopping allows customers to see the sales representative and their surroundings, building trust and increasing the perceived transparency and reliability of the business. According to Shopify, consumers believe that transparency is more important to them than ever before. This increased trust can lead to higher conversion rates and larger average order values.
Confer With results
Confer With’s live one-to-one video shopping platform has powered exceptional increases in conversion rates, average order values, and customer satisfaction. How?
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Personalisation
- Customers now expect retailers to provide them with precisely what they require. Customers anticipate frictionless, relevant, and connected experiences in all experiences. It is one thing to use data to create personalised landing pages; it’s another to provide a one-on-one live video call. This replicates the experiences found in stores: real relationships can be formed, needs can be fully comprehended, and expectations can be met. Confer With makes use of a patent-pending virtual shared basket, which results in an immersion and transparency that are typically unattainable on standard eCommerce websites, as well as 20% and above conversion rates.
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Features
- Confer With’s alternatives feature allows retail experts to recommend products that are similar in nature and complement the customer needs. For example, a customer looking to purchase a named brand TV can be suggested products of similar technical spec and value. This supports the sales of retail staff and helps customers make informed decisions with deviating from the core product. This has seen increases in average order value by 49%. Confer With’s inventory check also allows retail experts to perform stock checks without leaving the video channel. This adds to a seamless experience where the retail expert in confidence can suggest items that are in stock.
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High value and complex products
- Confer With’s live one-to-one video shopping platform is the perfect solution when serving customers that have high-value, complex, or considered purchases. This is because the retail expert can provide the assistance the customer is looking for, ensuring that the specific product is the right fit for them. This results in increased customer satisfaction, and a 37% reduction is product returns.
Key Takeaways
Compared to live chat, live one-to-one video shopping offers a more personal, immersive, and engaging shopping experience in the consumer electronics industry. By providing customers with a face-to-face interaction with a sales representative, live one-to-one video shopping can help to increase conversion rates, average order value, and customer satisfaction in the consumer electronics industry.
