We're more likely to spend money when we're having fun and don’t notice the price quite as much- just ask casinos. There is a trend toward merging e-commerce and entertainment that is increasing sales and helping brands stand out.
Some consumer experts note that we are moving from a consumer economy to an experience economy. People would rather spend money on experiences than acquiring material goods. Marketers and e-commerce retailers are, therefore, looking at ways to provide experiences and at the same time sell products. The earliest example of this merger are home shopping channels that have demonstrated the power of live shows and interaction with consumers in selling products. Now, e-commerce businesses are seeking ways to replicate that experience online. Examples of this include:
- Hosting live shows that feature experts, sellers, producers, and influencers. Natural products retailer Abe's Market, has been hosting live shows intended to entertain and inform, and also to create a sense of loyalty and excitement among consumers. These live shows promote sellers such as soap company Chivas, telling the story of the mother-daughter team behind the company's handmade goat milk soap, the process of making the soap, and the farm where they live.
- “View and click to buy” is a technology driven strategy which is based on the old-standby product placement. With “view and click to buy” a star in a music video might be wearing sunglasses that a consumer can click on and buy in an instant. This has the added fun dimensions of relating to being a rock star and instant gratification. The applications for this technology is endless with particular application to information or how-to videos where the required tools or products are purchased and delivered with simply a click. Imagine watching a cooking show and immediately ordering all the ingredients and cooking utensils for home delivery. The experience factor becomes even richer when the purchase is then shared on social media sites- friends can now know about ones latest interest, or impulse buy.
- The power of storytelling and minor-celebrities are used to move consumers to buy. The internet enables more in-depth information, inexpensive videos, and the use of local minor celebrities. In the past marketers would use major national stars to pitch products and influence consumers. Now local, more accessible, “minor-celebrities” can be engaged using videos and live shows. These minor-celebrities living in the community are far more accessible and provide a “like me” connection which influences buying choices. The cost of these minor-celebrities enable e-commerce sites to produce content which engages site visitors on a more extended basis.
- People love to earn points and get recognition. E-commerce sites are beginning to reward frequent visitors and more engaged consumers with special recognition including points, special status, and discounts. For example, BuddyBuddyBuddy gives “BuddyBucks” for every friend that purchases the same item as you do three levels out. So, if a friend of a friend of a friend purchases the same product, you get “BuddyBucks”. According to BuddyBuddyBuddy, the average buyer has the potential of two million friends buying the product. The fun is purchasing a product, watching how “viral” it goes, and getting rewarded for each person that buys the product. Now once you have bought the product the interaction does not stop there, it goes on and on.
Jaded consumers are no longer willing to believe advertisers and celebrities that may seem to have integrity today and major personality flaws and marital infidelity tomorrow. In your face advertising and marketing is beginning to shift to informational content and interactions that entertains, informs, engages, and creates loyalty. The degree of entertainment and engagement is measured by how much of the content is shared and ultimately the sales figures. Today’s consumer wants to be entertained and have fun as they are purchasing or being sold on a product or service. E-commerce sites are beginning to up the entertainment and fun factor blurring the boundaries between shopping and experiences. The thinking is- “after all we all could use a little more fun in our lives.”
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