TikTok Live Influencer Sales Effectiveness Analysis for a Toy Retailer

Executive Summary

This report looks at the sales performance of 10 TikTok influencers, focusing on how streaming hours affect sales. Our results show a strong positive link between streaming time and sales, meaning longer live sessions can help bring in more revenue. We recommend increasing streaming hours for top influencers, keeping the current commission for mid-level performers, and reconsidering the contract for the lowest performer.

Problem Statement

We needed to understand how streaming hours affect sales performance for TikTok influencers. The goal was to optimize resources and find ways to boost revenue.

Approach

• Data Collection: We collected data from 10 TikTok influencers, including total sales, units sold, audience size, and streaming hours.
• Correlation Analysis: We analyzed the relationship between streaming hours and total sales for each influencer.
• Performance Segmentation: We grouped influencers into high performers, mid-tier performers, and low performers based on their sales and engagement.

Results

1. High-Performing Influencers

• Top Influencers: Influencers 3, 7, and 4 were the top performers, with total sales ranging from $55,730 to $59,836.
• Correlation Insight: Influencer 8 showed the highest correlation (0.932) between streaming hours and sales, indicating that more streaming hours led to higher sales.

2. Mid-Tier and Low Performers

• Mid-Tier Influencers: Influencers 1, 2, 6, 8, 9, and 5 had moderate sales. Their correlation values ranged from 0.828 to 0.931, showing that more streaming time helped boost sales, but not as much as for the top performers.
• Low Performer: Influencer 10 had the lowest sales at $38,433, despite a decent audience size. They showed a positive correlation (0.831) between streaming hours and sales, suggesting that increasing their hours might help but would need additional strategies.

Correlation Insights

All influencers showed positive links between streaming hours and sales, with correlations ranging from 0.81 to 0.93, meaning more hours generally led to better sales.

Recommendations

1. Top-Performing Influencers: High Performers

• Influencers: 3, 7, 4
• Sales Performance:
  • Influencer 3: Sold 165 products (518 units), generating $59,836.84.
  • Influencer 7: Sold 160 products (477 units), generating $59,143.30.
  • Influencer 4: Sold 172 products (500 units), generating $55,730.34.
• Strategic Recommendation: 2% Commission Increase: Increase commissions for these influencers to motivate them to keep driving high sales and engagement.

2. Average Performers: Mid-Tier Influencers

• Influencers: 1, 2, 8, 6, 9, 5
• Sales Performance:
  • Influencer 1: Sold 154 products, generating $54,724.64 with an audience of 53,049.
  • Influencer 2: Sold 142 products, totaling $52,680.19 with a 4.91% conversion rate.
  • Influencer 8: Lower conversion (4.09%) but generated $51,393.48 in sales.
  • Influencers 6 and 9: Generated sales of $49,437.75 and $48,238.75, respectively.
  • Influencer 5: Lowest sales in this group at $45,698.57.

3. Low-Performing Influencer

• Influencer: 10
• Sales Performance: Sold 107 products (353 units) with total sales of $38,433.08. Audience size was 52,925, but conversion rate was low (4.88%).
• Strategic Recommendation: Reconsider Contract: Either renegotiate the contract with lower commission rates or consider not renewing unless there is a big improvement.

Visualization

Explore the full interactive visualization here:

Conclusion

The analysis shows that more streaming hours generally lead to better sales. By adjusting commission rates and optimizing streaming schedules, we can boost influencer performance and increase revenue.