With huge traffic benefits, precise algorithmic streaming, and diversified sales models……The snack category in Douyin e-commerce is driving steady GMV growth with high-speed user penetration. Recently, one of Illuminera’s clients, a snack giant that ranks the first place in its segmented category, has unveiled the secrets of Douyin growth, achieving a 30% growth in live streaming GMV and a four-fold conversion increase in less than one month.
How could this client create such a miracle through Douyin e-commerce while others are still struggling with the low ROI?
Heavily invested in Douyin and sustained the "extravagant prosperity"
Ever since the client placed heavy bets on Douyin, its e-commerce performance has been growing vibrant. However, how could it hold its lion share when facing fierce and continuous competition within and beyond its category? How to keep improving both the ROI and sales performance through limited resources?
01
Clarified the consumer journey
Located the golden spots leading to efficient conversion
In response to the unique business model of content plus product shelf, algo, a big data consulting boutique of Illuminera, together with the client’s EC team, had identified an anchor to break the deadlock, with the aim of answering frequently asked questions as below and locating the golden spots along consumers’ path to purchase, so as to improve efficiency and performance in different sales scenarios.
• Why do consumers shop through Douyin e-commerce?
• What are the effective touch points before purchase in different sales scenarios?
• Any difference between consumers who like live streaming by KOLs and brand owners?
• What are the triggers and barriers for live streaming purchase?
With the omni-channel data acquisition capability of Ghawar® platform, we first helped the brand to accurately remap consumers' purchase journey in Douyin, and then sorted out three typical decision-making patterns, which can be applied into different sales scenarios (such as KOL studio, Douyin Mall, etc.) to successfully figure out multiple core purchasing paths, and clarify the “golden spots” in the journey.
Based on solid consumer insights, we helped brands further finetune the Douyin e-commerce strategy and answer crucial questions that drive the purchase progress:
• What spots and touch points should be prioritized in different paths to purchase?
• What key measures need to be taken to increase efficiency from reach to conversion?
• What key imperatives should be focused and followed?
02
The right way to transform from consumer demand to conversion: Traffic distribution + content drive + portfolio design
Douyin has become the largest online traffic source in the industry while our client was not the exception with 46% of its media exposure occurred in Douyin, however when coming to convert the high SOV into business effectively, brand owner still needs to focus on three key imperatives, in addition to the planning of path to purchase.
In terms of traffic distribution mechanism, first of all, we helped our client effectively leverage the resource of brand marketing to achieve a win-win situation between brand building and business generation. And then we optimized the media strategy of e-commerce, including the TA retarget of branding advertisement, and optimization of the KOL matrix design, to improve the conversion rate of consumer assets.
In terms of content drive, we helped our client accurately identify consumers' shopping interests, scientifically design the content scheme for branding ads, seeding videos and live stream sales, precisely translate consumer insights under different decision-making patterns into marketing materials and key messages in communications, ultimately pushing the path to the conversion stage.
In the area of portfolio design, based on comprehensive consideration about characteristics of those purchased products, as well as drivers and obstacles behind, we helped formulate differentiated portfolio principles for different sales scenarios, to maximize the success rate of "the last click".
After defining the business growth strategy, algo’s consultants further systematically reviewed the status quo and challenges of each key node of the brand on the consumer journey, and proposed specific optimization plan based on industry best practices, and finally landed as a play book to provide guidance for client in daily operations, continuous tracking and optimization.
The brand is now continuing to carry on various initiatives according to our strategic consultation and has already seen obvious sales increment. Within less than 1 month, live stream’s GMV got increased by 30%, and conversion rate increased by 4 times as much, only through the optimization of product portfolio in this specific channel.
New engine to fuel Douyin e-commerce
Building growth strategy centered on consumer journey
Douyin kept changing its business model several times in less than 5 years , from short video social media, interest driven e-commerce , to product driven e-commerce platform, accordingly, the data value for brands has been upgraded, from consumer asset operation, content operation to product innovation, marketing strategy, e-commerce strategy and so on. The operation in Douyin is becoming more and more complex for brand owners.
Algo, the Illuminera boutique, has recently launched its innovative "Douyin E-commerce Growth Strategy solution" centered on consumer purchase journey, to help brands develop more efficient and operational Douyin strategies to reveal more growth opportunities.
For more information, please contact:
alice.he@illuminera.com
theresa.ye@illuminera.com
marketing@illuminera.com
