Clubhouse- The Next Big Ecommerce Opportunity?

 Clubhouse; chances are you haven’t heard of this new platform that could be the biggest social media breakthrough of 2021. While the app is only a year old, it has gained a lot of attraction from stars such as Gary Vaynerchuk, Elon Musk and Kevin Hart due to its authenticity and seamless user experience.

What is Clubhouse?

Clubhouse is an audio-only chat app, which launched in April 2020 and is valued at a whopping $1 billion as of January 2021. This is a remarkable price tag considering the app is currently invite only. It is also worth noting that the app is only available currently to iPhone users but Clubhouse plans to expand its platform further afield in the coming future and make it available globally.

How it Works?

To delve further into the app and how it works, users can join ‘Ted Talk like’ conversations called ‘rooms’ where they can connect with and listen to others discuss topics they are familiar with. A conference call is a great description to compare ‘rooms’ with. For example a room may exist centered around ‘Tech Start Ups’: this room will consist of speakers, moderators and listeners from anywhere in the world with a keen interest in the subject. The role of the moderator is to allow certain people to be allowed to speak during the conversations. To get involved in a ‘room’ conversation users must tap the‘raise hand’ icon on the app which alerts moderators of your intentions to speak. Moderators can control whether you are allowed to voice your opinion or not.

While the app exposes you to all sorts of content and topics, it also allows you to set preferences. To do so, you can choose your interests in the settings section, which will encourage more relevant categories to appear on your timeline.

What's so Special About it?

Clubhouse is deemed a massive opportunity in the social media sphere, as it presents a unique selling point (USP) accelerating its growth; audio only. Given the current state of the pandemic and the decreasing number of conferences and networking events, Clubhouse has the potential to replace such experiences. The ability to connect with others even when driving or washing dishes, for instance, only increases the popularity of the user experience. Similar scenes are evident with the constant surge in podcast listeners, where time is the most valuable commodity among most people today. Providing a social media network where users can multitask with, significantly improves the positive perception of the app.
The USP highlight how Clubhouse is changing the landscape of social media and values intimate human connection and dialogue greater than likes or followers.

Clubhouse and Ecommerce?

Tiktok was widely considered ineffective by many companies during its initial stages and many were late to join as they didn’t envisage its marketing capabilities. Due to the unbelievable organic reach TikTok has, brands can go viral with just one video. Additionally, we are now seeing more and more companies run ads on the platform, given its engagement among users. Clubhouse, still in early development is a growing opportunity for brands to expand their audiences and level up against their competitors.

Here are 4 ways by which brands can use Clubhouse to their advantage:

(1) Build a Strong Community: From the outset, you can distinguish yourself in a particular topic and become a regular voice in room conversations. Clubhouse can generate a sense of trust and connection between listeners and your brand if you offer valuable and helpful content in rooms. Furthermore, you can establish yourself as a leading expert in a particular industry and build an engaged community of followers through meaningful, open discussions.

 (2) Exclusive Interactions: If you manage to gain an engaged following on the platform, your brand can develop customer loyalty through rewarding followers with discount codes, exclusive announcements or competitions for example. The audio aspect reduces pressure on followers to contantly look at their devices and can simply tune in while multitasking.

(3) Increase Profile: As the app is very new to the tech space and has only a small cohort of users to date, little can be said as to whether the app has strong organic reach and advertising capabilities. TikTok partnered with Shopify in October 2020, indicating how serious ecommerce had become on the platform. According to market research firm Kantar, 83% of consumers browsing TikTok say seeing trending content has inspired them to make a purchase. Clubhouse has similar potential and could be a driving factor to increase your company profile and drive customers to your website.

(4) Idea Generation: Real time conversations with leaders in your industry or customers of your brand can open thought patterns and generate ideas for new features and improvements you can make. Instant responses can postively facilitate growth hacking and continuous innovation for your brand. Additionally, you can use Clubhouse as a networking tool to create and build relationships with other individuals in your niche, enhancing opportunities for your brand.

Clubhouse is still quite unknown as to how successful it will be and whether competitors will replicate their app experience. However, by gaining a foothold on the app interface and usability early on, you will discover whether Clubhouse is the right network for your company. The possibilities for growth are there, you just have to find them!