The Essence of Live Commerce: PDCA Improvement and Building Customer Lifetime Value

Traditional e-commerce typically records conversion rates (CVR) in the range of roughly 1–3%. Live commerce, however, introduces a fundamentally different purchasing mechanism. Drawing on publicly available case studies from Tailor App’s live commerce support service “LIVURU,” this column explores how strategic implementation can improve sales outcomes while laying the groundwork for long-term customer lifetime value (LTV).

The Fundamental Difference Between Live Commerce and Traditional E-Commerce

A structural limitation of traditional e-commerce is the “decision gap” created by incomplete information. When users arrive at an online store via search engines or social media, they often rely on text descriptions, static images, and reviews. Questions about fit, usability, skin compatibility, or product texture may remain unresolved, leading many potential buyers to abandon their carts. This dynamic helps explain why e-commerce conversion rates often settle in the low single digits.

Live commerce addresses this challenge by enabling questions to be answered in real time. Viewers can submit comments during a broadcast and receive immediate responses from the host, reducing uncertainty and lowering psychological barriers to purchase. Because the experience more closely resembles in-store assistance, live commerce is increasingly viewed as a way to recreate the persuasive power of face-to-face sales within a digital environment.

A Verified Case Study: Major Confectionery Manufacturer

A 2022 case published by LIVURU provides insight into the practical value of PDCA-driven improvement. The company faced a familiar problem: television commercials, constrained to roughly 15 seconds, could not fully communicate the product’s key concept or emotional appeal. Live streaming was therefore positioned as a medium for deeper storytelling and customer understanding.

The initiative centered on three strategic elements.

First, the company designed a clear viewing pathway by promoting the livestream in advance through influencers, building anticipation and encouraging attendance.

Second, the content strategy shifted from straightforward product promotion to an emotionally resonant theme—“family bonds.” Over three consecutive days, the broadcasts approached the product from multiple angles, including quiz-based engagement, cooking applications, and narratives aligned with the brand’s commercial messaging. Multiple presenters helped broaden the appeal and sustain viewer interest.

Third, the purchasing pathway was carefully structured. At the time, direct purchasing through Instagram’s IGTV posed limitations, so the company clarified the buying process and repeatedly guided viewers during the stream.

The results were significant. The live broadcasts attracted approximately 51,000 viewers, while total viewership—including replay audiences—reached about 450,000. Limited-edition products sold out within three days, and the item subsequently appeared in Amazon rankings.

Perhaps more importantly, average viewing sessions of 30–40 minutes allowed the brand to communicate its core concept more effectively than short-form advertising could. When customers better understand a product’s story and value, post-purchase satisfaction tends to increase—forming a foundation for stronger lifetime value.

Emerging Trend: Using Live Streams to Optimize Advertising Creative

Since 2024, live commerce has increasingly served not only as a sales channel but also as a testing ground for marketing creative.

In one skincare case, Tailor App reported that creative assets derived from livestream content achieved customer acquisition costs approximately 41% of those generated by conventional creative. By analyzing viewer reactions and identifying moments when purchase intent peaked, marketers were able to replicate that emotional intensity in broader advertising placements.

Similarly, an apparel brand achieved a 2.7-fold increase in CVR after optimizing creative based on live-stream insights.

These examples suggest that live commerce is evolving into a data-driven laboratory for identifying persuasive messaging. Rather than guessing what resonates, brands can observe real-time engagement, extract high-performing elements, and redeploy them across advertising channels.

LIVURU’s Integrated Service Model: Unifying Communication and Commerce

Tailor App frames live commerce as the fusion of two functions: interactive communication (“live”) and purchasing design (“commerce”). Its support model spans planning, casting, platform selection, broadcast execution, and post-event analysis.

According to company disclosures, the service has supported more than 250 companies and facilitated over 10,000 livestreams. This scale underscores a growing demand for structured operational guidance rather than ad hoc experimentation.

The company has also introduced an initiative known as UGCM (User Generated Commercial Model) in collaboration with Nippon TV Wands. The concept involves converting the “highest-converting moments” from live commerce into TVer advertisements. Because TVer ads cannot be skipped, examples cite completion rates of around 96% for 15-second spots, enabling highly efficient audience reach.

A Long-Term Perspective: Designing for Customer Lifetime Value

The true measure of live commerce success is not short-term revenue spikes but sustained growth in customer lifetime value. Continuous broadcasting supported by PDCA cycles enables incremental improvements that compound over time.

This process can be understood in four stages:

Stage 1: Clarify themes and target audiences.Narrow positioning leads to more focused conversations and clearer purchasing pathways.

Stage 2: Establish a structured approach to comment engagement.Anticipating common concerns—fit, comparisons, ingredients, returns—builds trust and accelerates decision-making.

Stage 3: Design purchase triggers thoughtfully. Limited offers, exclusive bundles, or special incentives are most effective when introduced after sufficient product understanding has been established.

Stage 4: Extend engagement beyond the livestream.Repurposing archives into short-form content, redistributing clips on social platforms, and gathering post-purchase feedback all help convert first-time buyers into repeat customers.

Over time, this approach shifts the growth model from one dependent on constant customer acquisition to one anchored in loyalty and repeat purchasing. Live commerce excels at compressing the timeline required to build understanding, confidence, and emotional connection—three pillars of long-term profitability.

Market Outlook Toward 2026

Live commerce is transitioning from an early-stage experiment to a growth-phase channel with expanding participation. As adoption becomes widespread, execution alone will no longer differentiate brands. Competitive advantage will increasingly depend on the ability to design strategies that maximize customer lifetime value.

Organizations willing to iterate, analyze performance data, and refine their broadcasts will be best positioned to lead. The essence of live commerce is not merely generating immediate sales—it is learning how to win, repeatedly, through a cycle of improvement that deepens trust and strengthens customer relationships.

Ultimately, the brands that succeed will be those that transform live commerce from a tactical campaign into a durable engine of long-term value.

Sources

• WordStream — benchmarks and discussion of typical conversion rates in digital marketing

• VWO — overview of average e-commerce conversion rates

• BizGarage (citing Japan Total Telemarketing research) — comparison between in-store and online purchasing tendencies

• Tailor App / LIVURU case release — major confectionery manufacturer livestream results (51,000 live viewers; 450,000 total views)

• Tailor App press release — skincare case showing significantly improved CPA from livestream-derived creative

• Tailor App press release — apparel case reporting a 2.7× increase in CVR

• Tailor App corporate disclosures — support for 250+ companies and 10,000+ livestreams

• Tailor App × Nippon TV Wands — UGCM announcement referencing high completion rates for TVer advertising