---
title: "Running Stores with the Logic of Livestreaming"
description: "In an era of abundance, connectivity, and information overload, success depends on mastering the era's key productive forces. For physical stores, this means applying the measurable metrics of livestreaming—popularity and sales indices—to drive customer engagement and conversion."
author: "逄格亮"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-07-22"
language: "en"
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---

# Running Stores with the Logic of Livestreaming

> In an era of abundance, connectivity, and information overload, success depends on mastering the era's key productive forces. For physical stores, this means applying the measurable metrics of livestreaming—popularity and sales indices—to drive customer engagement and conversion.

First, there is the you of the era, then there is your era. What is destiny? Destiny is the class you were born into and your parents' genes. What is fortune? Fortune is the era you live in and the business cycle. What era is this? It is an era of abundance, an era of universal connectivity, and an era of information explosion. The fortune of each of us, each operator, lies in the background noise of this era. If we want to live out our own era, we must first belong to this era and master its key productive forces. In the agricultural era, the core productive force was physical strength; whoever was strongest and most robust was the strong one of that era. Our five thousand years of culture, at least 4,800 years, were spent against this backdrop. In the industrial era, the core productive force was machinery; whoever could operate and precisely control machines was the strong one. Cars, airplanes, and assembly lines originated in this era.
In the network era, the core productive force is connectivity; whoever can connect and drive traffic is the strong one. BAT originated in this era. In the intelligent era, the core productive force is rapid decision-making; whoever can make business measurable and enable rapid decision recommendations is the strong one. Douyin, Kuaishou, Xiaohongshu—these interest-based content platforms originated in this era.
Clearly, in this era, one foot in connectivity and one foot in decision-making have become the new survival skills we need. Without the you of the era, there is no your era.

**Measurable "New Farm Work"**
**Livestreaming and physical stores may seem like two different species, but in the customer's task, they are different choices for the same task.** I have served over 100,000 stores and achieved the top livestreaming performance in the food subcategory on Douyin. When I stand on this background of store and livestreaming experience and examine it with the logic of the 4Ps built on super customer tasks, super purchase reasons, and super value development, I find that different forms of expression share the same business logic.
Starting from the four marketing elements—product, price, place, and promotion—we will find that **the livestream room is both promotion and place.** In the marketing path built by promotion and place, we must mention Philip Kotler's 5A model proposed in "Marketing 4.0": **making the customer journey from attention to user measurable.** From A1, we consider that customers have seen our promotional information; A2, we consider that customers have seen it multiple times and liked it; A3, not just likes, but also interaction and search queries; A4 and A5 are new purchases and repurchases. Livestreaming starts under this framework, ensuring that these attention and interest groups (A1, A2, A3) become purchasing users. In this context, there are two types of core operational data indicators for the livestream room: popularity index and sales index. **The popularity index determines whether users are interested, and the sales index determines whether users are willing to buy.** The host, operations, and field control revolve around these indicators. Scripts, product assortment, rhythm, and atmosphere are all aimed at improving the livestream room's popularity and sales indices. **The stronger the popularity index, the more traffic the system recommends, and the more traffic often means stronger conversion capability.**

**Store operations can also be measured**
What does the data from the livestream room have to do with physical stores? Actually, the greatest truth is simple: **stores also need popularity and sales indices.** We all understand that we don't go to stores with few people; intuitively, few people means the products are unreliable and no one buys them. This is the popularity index. Similarly, the sales index works the same way: many people create scarcity, and scarcity moves and converts. Of course, the scope of livestream rooms and stores differs: the livestream room targets the global village as its audience for attraction and conversion, while the store only focuses on the surrounding five kilometers. But most traffic in livestream rooms needs to be purchased, while stores, due to their fixed location, can continuously have people passing by. Today, many people advocate that online is king, but this conclusion is not necessarily extreme. Everything can be viewed dialectically: **in the world of creating customers, online and offline are complementary in terms of purchase reasons.** The livestream room has entry rate, click-through rate, and payment rate. Stores also have entry rate, inquiry rate, and purchase rate. The principles are similar; the key is whether operators recognize the importance of these indicators. **Key point: popularity index and sales index have become the decisive factors in store operations today.**

**Arm yourself with "new farm tools"**
Store operators must recognize: the store is still the store, but the logic of creating customers has changed. It is no longer waiting for customers to come; it is about building your own popularity and sales indices through the super 4Ps, **from people finding the store to the store finding people, from people finding products to products finding people.** The livestream room builds its popularity index through entry rate, interaction rate, and dwell time. Store operators should also think: what actions can increase the store entry rate? What actions can increase the inquiry rate?
**About entry rate**
**The core of entry rate is the store's attractiveness at first glance, which usually includes: promotional appeal, product experience, and social presence.** In the livestream room, we present the room's background and activities based on customer attention tasks. In the store, we can also present activity and experience information based on customers' key tasks at different stages. Making customers attracted at a glance and finding ways to get them to enter, participate, and experience is the core of entry rate. We build our promotional content based on this purpose, and we must ensure: the signal is strong and large, ensuring more people can notice it.
**About interaction rate**
**The core of interaction rate is: to arrange products and explain purchase reasons around customer tasks.**
**Customers don't want products; they want to complete tasks through products.** Customers want to inquire and experience, and there must be a task premise, whether it's a problem-solving effect task, an emotional experience to adjust mood, or a social task to optimize relationships. **Everything revolves around this principle to present the store's business. Different products are combined through task solutions, and unique purchase reasons are built and fully explained in the store.**
We must recognize: **customers buy products, but they are moved by reasons.** Whether it's the salesperson's script or posted display information, it all revolves around purchase reasons.
And when we talk about cost-performance ratio, i.e., the ratio of value to price, it is also through interaction that we first clearly explain the value and experience the value well, so that the reasonableness of the price can be better reflected. This is also an important operational task in the store's interaction process. **Only when customers fully understand and experience the purchase reason can there be an opportunity to explain the cost-performance ratio.**
**About conversion rate**
**The core of conversion rate is: building scarcity.**
**Consumers don't want cheap products; they want the feeling of getting a bargain.** Even if it's cheap, it's hard to move customers today because they think they can buy it at that price anytime. **Therefore, facing customer tasks at different stages, combined with Chinese festival concepts, designing different activities and establishing scarcity information transmission is crucial.** Different activity timeliness and different product quantity scarcity are key to building conversion rates. Look at the livestream room: every few seconds they shout "only 3 left," "only 2 left," "gone." These are actually shaping scarcity to promote conversion. This is store operation, from entry rate to interaction rate to conversion rate. These data have long been embedded in the muscle memory of e-commerce people, but many store operators who also need to create customers are still stuck in the agricultural era, believing that hard work and endurance are enough for good operation.
**We say that taking the old road won't lead to new places.** Today's offline store operation is definitely not just competition with neighboring stores; it may be competition with food delivery platforms, e-commerce platforms, or interest-based content.
**We must recognize that popularity index and sales index are the "weather vanes" of store operation in this era. Discovering and strengthening customer tasks, building super purchase reasons, and developing super scene content are the "new farm work" of this era.** With an operation orientation, find ways to attract more people into the store, strengthen super sales scripts, super product assortments, and super activities to increase interaction and conversion.
Pang Geliang, with over 15 years of experience in big data products, worked at Huawei for more than 11 years. After starting his own business, he focused on digital marketing services, founded the store growth SaaS marketing digital product, served over 100,000 stores, and served top clients such as Huawei Terminal, ICBC, Hongdou Group, Aima Group, and Changan Group. He led interest e-commerce, serving top clients like Luhua, Zhou Hei Ya, and Shuanghui, and achieved the No. 1 self-broadcast in the food subcategory during 618 and Double 11.


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