The live shopping assistant is replacing the store associate

2020 saw the emergence of a new breed of commerce – the live shopping experience. In this type of experience customers would interact with a live shopping influencer, watch products in real time and when ready, purchase the products directly in stream. At the center of it sits a very important person: the live shopping assistant or influencer.

We’ll see an increasing number of people switching to this kind of job in 2021.

The live shopping assistant as a new job

As the marketing industry would point out the influencers already do this on the likes of Instagram and Snapchat. I see a new breed of “influencer”. The one who knows a product category very well, is well trained (practice makes perfect) in speaking with customers and … needs a more fulfilling job. A store associate in the age of live: the live shopping assistant.

Can live shopping create jobs for the laid-off retail workers?

In 2020 2 million retail workers lost their jobs to the changes brought in by the pandemic. Many of them had to quickly find alternatives when their stores were closed.

Now live shopping will hopefully bring back some hope and more fulfilling, better paid jobs and gigs. Unlike the traditional store associate job, the live shopping assistant/influencer has the potential to become a real superstar.

In more established live shopping markets, such as China, live shopping streamers such as Viya are gathering millions of customers in their live shows and selling brands such as Tesla, Procter and Gamble. Fun fact – she even sold a package sent to outer space for $6 million.

Listen to “Is the live shopping assistant the future of retail jobs?” below:

Why the store associate as we knew it is not a viable career path anymore?

For a very long time the store associate has been at the heart of brick and mortar stores. Store associates would greet customers, respond to queries, help find products and generally help customers with their purchases.

However, the emergence of digital tools and especially smartphones has rendered store associates almost obsolete. But that may change with live stream shopping and they may become the leading actors in the age of live shopping.

In a recent study by MillwardBrown that focused on customers purchasing athletic footwear we can see just how useful a store associate is these days.

Of those that chose to shop in store, only 12% listed the sales person as one of the reason to purchase offline. Most (88%) chose to try on the product before purchasing.

It’s not just sports shoes. A study by Deloitte Digital shows that customers would rather receive help from an interactive kiosk or their own smartphone rather than a store associate.

As you can see above the willingness to use a smartphone rather than discuss with a sales associate is almost double. Even an impersonal unmanned device such as an interactive kiosk would fare better than a store associate.

Digital Influence in Online and In-store Commerce

Is Brick and Mortar commerce dead? Absolutely not. Is eCommerce the most important sales channel in the future? Irrelevant. Neither online or offline sales really matter in the big picture. What matters is how customers shop and how much has digital changed the way retailers do business.

In 2013 36% of overall sales in US were influenced by digital. As social media influencers gained more and more … well … influence, this trend continued and now 49% of the total number of consumers in the US depend on influencers when purchasing, with 60% of teens depending on recommendations from celebrities and people they follow on social media.

So what does this mean for you and your commerce business?

1. Sales are now lead by (social media) influencers

This is not new by any means. Influent people will drive sales.

What’s new is the media they use to do this and their profiles. In the past we were influenced by celebrities smiling at us from glossy magazines and the TV.

Now the influencers that drive sales are people with access to a mobile phone, an internet connection, a channel on one of the social media outlets and a care for their following.

Reaching out to these new influencers is now a key factor in building your brand, your community and your sales.

2. Influencers are now an actual sales channel

A growing trend in emerging social networks is to build their business models on something outside of advertising. One such business model is commerce based revenue rather than advertising. As Facebook and YouTube have hyper-optimized their advertising models, newer social media outlets needed to innovate.

Enter live stream shopping. With this model, influencers can sell directly to their followers, charge a certain commission fee or even build their own product lines.

3. Brick and mortar shopping is definitely not dying. Unless it has to.

89% of all retail sales still happen in the confines of a physical store. Wait, what?

It seems that what’s causing retailers problems is failure to engage customers on all channels. Customers are pre-buying (shopping) on ecommerce sites but they pick-up, try on and eventually buy a lot of things in the physical store.

With Covid changing this in 2020, ecommerce stores have received more traffic and sales and brick and mortar stores need to join digital sales somehow. Some use live stream shopping to do that.

The trick here is getting the big picture right. To thrive – use different customer journey points and engage digitally in a relevant way. Customers may shop online and get an assortment ready but they want to enjoy the experience. Either in-store when possible or digitally through live videos. Just placing discounts in the mobile app doesn’t work. Each part in the shopping experience has to be personalised to that particular medium and need.

What is Shopkick?

Physical stores have a greater conversion rate than online stores. Conversion rate for in-store traffic is 20% in fashion, 50% in electronics and 95% in groceries. Physical stores are therefore superior to online stores in terms of conversion rates where a 5% conversion rate is considered very good. Even though classic retailers benefit from a high conversion rate the traffic is way lower than online.

Shopkick gets traffic to brick-and mortar stores

Shopkick is a company based on a mobile product that works on iOS and Android mobile devices. It uses different in-store incentives (discounts, freebies) to reward potential consumers that choose to check in using the app in the partner stores.

The check-in, incentive redeem technology is quite impressive. It does not use, as one might expect, GPS features as these are not accurate enough. Founder Cyriac Roeding, explains just how accurate GPS on smartphones is: “It is so inaccurate that you could check into a Starbucks two blocks away”.

Instead Shopkick uses sounds inaudible to the human ear to check you into stores. The technology is patented worldwide and Shopkick founder says they are doing great with over 7000 large retail stores.

What is Shopkick after all?

Simply put Shopkick is a mobile based company. But if we think about it – Shopkick is much more than that. It is the bridge between online and offline retail. Its incentives increase real traffic in stores, increase revenue and all with a simple mobile solution.

Shopkick is doing way better than Foursquare in terms of growth acceleration and revenue per user. After all it has real, tangible discounts. While Foursquare offers you electronic badges and peer recognition (“Look buddy, I am the mayor of this place”) Shopkick’s incentives engage users and marketers even more. The numbers are clear on this: with 3 million  monetize – able users Shopkick is here to stay.