Shoppable Video - Business Model Innnovation

Shoppable Video – A New Customer Acquisition Channel

Hover over or tap the Products in a Video

See the most relevant Product Info

Add to cart from the same frame, typically on a brand’s website

Why Shoppable Video?

Most of this blog and site is about Business Models. A subset of that research, however, is on Business Model Analytics – Behavioural, Channels, Retention.

This body of research is centred around the Corporate Based Customer Valuation (CBCV) Models, where the goal is basically:

create a customer-centric, consumer brand optimized for LTV (Lifetime Value)
to achieve this requires discipline and strategy on Customer Acquisition Costs (CAC)
it also requires building a loyal customer base, where retention helps optimizes revenue per customer
and it requires a level of targeting, across audiences and channels

The types of opportunities being created for those brands who are creative and bold in their approach to Live Shopping and Shoppable Video can unlock tremendous layers of value relative to the above, and separate themselves from the competition.

Lost in the “Sea of Sameness”

So many brands nowadays are awash in the ‘sea of sameness,’ trying to run the same strategies everyone else is running.

I often use the phrase “sea of sameness” to describe the abundance of comparable, and consequently underwhelming, experiences offered by brands striving to achieve premium or luxury status, irrespective of their product category.
Daniel Langer

Divergence and differentiation are at the heart of a ‘Shoppable Video’ strategy because the “Live Commerce Playbook” is itself non-linear, and offering an asymmetric upside if executed correctly.

Without the emotional connection between a brand and its respective audience, underperformance is inevitable.

The No. 1 reason for brands underperforming is their lack of distinctiveness in storytelling and their inability to evoke strong emotional responses.
Daniel Langer

Live Shopping and Shoppable Video are all about the ‘human touch.’ The best executed campaigns in the Western markets right now weave together creative sets, storytelling, engaging hosts, and products to get excited about.

Conversion, Loyalty, and Lower CAC

The Conversion Rates on Live Shopping is typically 9%, with rates going as high as 30%. Shoppable Streams of UGC and similar content also have higher conversion rates than traditional e-commerce, which sits around 3%.

By looking at the ‘flip the funnel‘ analogy, we can expect that a lot of this ‘Shoppable Content’ will be hosted on the brand’s website, versus social commerce platforms like TikTok Shop.

This means that the brand essentially hosts the experience and can convert the customers on their own e-commerce platform, controlling both the experience and the data. This will lead to greater loyalty.

While these strategies require investment, experimentation, and scaling to demonstrate true results, the mid-term expectation from a holistic perspective is to see a lower CAC as a result of these Live Commerce type strategies.

Thus, it ticks all the boxes of being a creative, high-touch strategy that can deliver all the business model results simultaneously.