Built Online Podcast - Episode 74 Summary

Title: Maximizing Conversion Rates: Leveraging Short-Form Video Content to Drive E-commerce Sales with Eitan Koter
Release Date: November 4, 2024
Host: Cody McGuffey, EverBee
Guest: Eitan (Ethan) Koter, Co-Founder and Co-CEO of Vimy

Introduction

In Episode 74 of the Built Online Podcast, host Cody McGuffey delves into the transformative power of short-form video content in boosting e-commerce sales. Joining him is Eitan Koter, the co-founder and co-CEO of Vimy, a pioneering shoppable video software company. Together, they explore strategies, industry insights, and practical advice for leveraging video to maximize conversion rates in the dynamic world of online business.

Guest Background: Eitan Koter

Eitan Koter brings over two decades of experience in the video industry, transitioning from traditional broadcast media to the digital landscape. As the co-founder of Vimy, Eitan has been instrumental in merging media and commerce, particularly through innovations like live shopping. His expertise lies in helping e-commerce businesses integrate video content seamlessly with sales strategies to enhance customer engagement and drive conversions.

Defining Video Commerce and Its Evolution

Video Commerce: Eitan defines video commerce as the integration of video content with commercial transactions, enabling viewers to purchase products directly through interactive videos. This encompasses both live and pre-recorded (non-live) videos.

Live Shopping: Originating in China, live shopping involves streaming live content where hosts showcase products, allowing viewers to make purchases in real-time. Eitan emphasizes its growing popularity globally, with platforms like Amazon and Walmart adopting live shopping features.

Shoppable Videos: These are interactive videos where products are embedded with clickable links or buttons (e.g., "Buy Now"), directing viewers to purchase pages seamlessly.

The Power of Short-Form Videos

Eitan underscores the importance of short-form videos, typically ranging from 30 to 60 seconds, as a starting point for brands looking to enhance their online presence. He advises:

• Authenticity and Consistency: "The first instance using the right hook and what's working is authenticity and consistency." [00:44]

  Authentic content resonates more with audiences. Eitan highlights that viewers prioritize genuine interactions over polished aesthetics, suggesting that brands focus on delivering authentic messages consistently.

• Practical Setup: Utilizing affordable tools like good lighting and inexpensive microphones can significantly improve video quality without substantial investment.

Navigating the Social Commerce Landscape

Growth Statistics:

• In 2023, social commerce reached a staggering $1.3 trillion in Gross Merchandise Value (GMV).
• Projections for 2030 estimate this figure to soar to $6.2 trillion, accounting for approximately 13% of worldwide e-commerce sales.

Regional Insights:

• China: Over 80% of retail GMV is driven by online activities, showcasing the country's advanced integration of social commerce.
• United States: Online sales comprise around 20% of total retail, indicating ample room for growth through social and video commerce strategies.

Omnichannel and Multichannel Strategies: Eitan emphasizes the necessity for brands to adopt omnichannel approaches, blending offline and online experiences to cater to diverse customer preferences.

Strategic Content Creation Aligned with the Marketing Funnel

Eitan outlines a content strategy tailored to different stages of the marketing funnel:

1. Awareness Stage:

   • Content Focus: Share the brand story, founder’s journey, educational content, and market insights without pitching products.
   • Objective: Build trust and establish a connection with potential customers.
   • Quote: "Provide your story... think about pains customers are having or gains and try to create content around that." [18:51]

2. Consideration Stage:

   • Content Focus: Address customer pain points, compare with competitors, and showcase differentiators.
   • Objective: Aid customers in evaluating options by providing transparent and valuable information.
   • Quote: "Create those comparison videos and content around you. What's differentiating you, right? Versus the others." [21:56]

3. Decision Stage:

   • Content Focus: Share testimonials, product reviews, pricing information, and facilitate shoppable experiences.
   • Objective: Encourage conversions by reinforcing the value and reliability of the product.

Volume and Consistency: Eitan advises producing between 70 to 100 videos over two to three months to analyze performance and identify effective strategies.

Overcoming Reluctance to Being On Camera

Addressing common fears among founders about appearing on video, Eitan offers practical solutions:

• Embrace Authenticity: "Your authenticity, your imperfections are the thing that separates you from your competition." [25:45]

  Eitan encourages founders to leverage their genuine selves, as authenticity fosters deeper connections with audiences.

• Utilize Tools and Resources: With numerous AI-driven tools available, even those uncomfortable with high-production content can create engaging videos using simple setups like smartphones and minimal editing.

• Content Delegation: If being on camera isn’t feasible, brands can involve team members or influencers to represent the brand authentically.

Effective Platforms and Audience Targeting

Eitan recommends a strategic approach to selecting platforms based on where the ideal customer profiles are most active:

• TikTok: Predominantly Gen Z and millennials.
• Meta Platforms (Facebook & Instagram): Wide-ranging demographics but strong among older millennials.
• YouTube: Broad audience across various age groups.

Action Steps:

1. Identify Where Your Customers Hang Out: Determine the primary platforms your target audience uses.
2. Focus and Optimize: Allocate resources to excel on those specific platforms while maintaining a presence across others.
3. Engage Actively: Spend time interacting, responding to comments, and building community within chosen platforms.

Rapid Fire Segment

Towards the end of the episode, Cody and Eitan engage in a rapid-fire Q&A, providing additional insights:

1. Favorite Business Book:

   • Eitan: Marketing for Supervillains by Jesse James. Highlights the importance of differentiation over mere improvement.

2. One Thing Eitan Wishes He Knew Before Starting His Business:

   • Eitan: A deeper understanding of market dynamics and customer pain points.

3. Worst Business Advice Received:

   • Eitan: Hiring a sales team too early. He later realized the importance of focusing on product innovation and organic growth before scaling sales operations.

4. Work Habits:

   • Eitan: Works between 70 to 80 hours a week, balancing intense focus with time spent unwinding to foster creativity and prevent burnout.

5. Personal Traits as Perceived by Others:

   • Eitan: Tenacious and persistent, though sometimes overly high-level in decision-making.

Conclusion and Resources

Eitan wraps up by sharing where listeners can connect and access Vimy's resources:

• LinkedIn: Eitan posts daily content related to video marketing and commerce.
• Podcast: Mastering E-Commerce Marketing Podcast hosted by Eitan.
• Website: vimy.net – Offers information on shoppable videos, live shopping events, and a free-for-life account option.
• Special Offer: Listeners can use a coupon code provided in the show notes for a 20% discount on Vimy's paid plans.

Final Thoughts: Cody and Eitan emphasize the immense potential of video commerce in the evolving digital landscape, encouraging e-commerce businesses to embrace authentic, consistent video strategies to drive engagement and sales.

Key Takeaways:

• Start with Short-Form Videos: Utilize platforms like TikTok, Instagram Reels, and YouTube Shorts to create engaging, authentic content.
• Align Content with Marketing Funnel: Tailor your video content to address different stages of customer awareness and decision-making.
• Consistency is Crucial: Regular content creation (aiming for 70-100 videos over a few months) helps in identifying what resonates with your audience.
• Leverage Founder Authenticity: Founder-led content can significantly differentiate your brand and build trust.
• Utilize Shoppable Video Tools: Platforms like Vimy enable seamless integration of commerce within video content, enhancing the shopping experience.

For more insights and resources, visit vimy.net and follow Eitan Koter on LinkedIn. Don't forget to subscribe to the Built Online Podcast for future episodes filled with actionable e-commerce strategies.