Once upon a time, I was handling the operations of India’s first in-app live commerce project for the marketing and media agency I was employed by. The client? One of India’s leading fashion e-commerce platforms who had just invested heavily in building live-commerce capability. Those who have piloted an idea would know that it can get very complicated, very quickly. Consultants, strategists and managers have an inherent responsibility to report on the success and effectiveness of their efforts to senior management and most importantly to the clients they serve. This requires clear identification of benchmarks metrics and KPIs that would determine the success of a project or a team’s efforts.
In my case I was responsible for reporting on quality and engagement metrics of live-streams which took place within this systemization project. In recent times live commerce and live streaming mediums have proven to be powerful tools for building brand equity while creating meaningful connections with customers. Last week’s article mentioned Amazon Live, a live streaming communication method employed by Amazon to enhance the brand equity of both itself as a host platform, and for brands who are vendors on the platform. In this article, we’ll delve into what live commerce and live streaming are, explore the metrics essential for measuring their effectiveness, and discuss how these metrics relate to the concept of brand equity.
Live Commerce is a hybrid of live broadcasting and e-commerce, where brands and influencers showcase products or services in real-time, engaging with viewers through live video. It provides a dynamic and interactive shopping experience, allowing customers to ask questions, get immediate responses, and make purchases while watching a live broadcast.
Live Streaming, on the other hand, extends beyond commerce. It is the engineered method which allows users to share a video in real-time. The video file is uploaded in small bits and the viewers can watch the video while it is being filmed, almost like a live news broadcast. Live streams can take place on many internet apps and platforms including social media, e-commerce platforms, gaming platforms and productivity apps.
Let’s look at a few key metrics which helped me gauge the effectiveness of my team’s live streaming efforts and why these metrics can also be linked to the concept of brand equity:
- Engagement Metrics (Likes, Comments, Shares): High levels of engagement indicate that the content resonates with your audience. Brands that consistently receive positive engagement are likely to have a stronger brand image and more positive brand equity.
- Conversion Metrics (CTR, Conversion Rate): Conversions resulting from product displays in live streams are an indicator of how effective your brand’s messaging and visuals are in driving action. A high conversion rate can be seen as a reflection of strong interest in a brand or product and trust.
- Audience Demographics (Age, Gender, Location): Understanding audience’s demographics helps tailor make content and messaging to better connect with your target market. This ultimately strengthens brand connect among specific consumer groups.
- Sales and Revenue Metrics: Being able to generate revenue during live streams shows the tangible value of products and brand offers. Consistent revenue growth can contribute positively to brand equity.
- Audience Retention (Viewer Drop-off Rate): Higher audience retention rates shows that the produced content is engaging and resonates with viewers, helping to build stronger brand loyalty and trust over time.
- Customer Feedback and Sentiment: Positive feedback and sentiment from viewers indicate a strong brand reputation and satisfactory experience with products, which contributes to enhanced brand equity.
The success of a brand’s marketing communication efforts can significantly impact its overall brand equity. Aligning marketing and communication goals with brand equity measurement is essential and the metrics mentioned above can be used to analyze the impact of multiple communication assets like static and video adverts. If your brand aims to increase brand awareness, metrics like ad impressions, social shares and mentions can help gauge your reach and impact on the wider audience, thereby contributing to brand visibility and equity
On the other hand, if your brand’s current goal is to enhance customer loyalty, focusing on engagement and audience retention metrics can be key. Loyal customers are more likely to perceive higher brand value and respond to communication. Moreover, if driving immediate sales is a priority, tracking conversion metrics and sales generated as a result of messages and visuals directly influences brand equity by demonstrating tangible value.
In essence, each brand is unique, and the choice of metrics depends on its individual business goals and objectives. Identifying which metrics align with specific marketing and communication goals is crucial for building or enhancing brand equity. By accurately tracking and analyzing these metrics, brands can assess their performance, enhance audience engagement, and bolster their brand’s value and reputation. It is therefore imperative for marketing and business managers to sit together and decide which metrics would provide the most insight regarding the effectiveness of marketing efforts and growth of brand equity.
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