The US voice purchase market will grow from its current value of 2 billion US dollars to 40 billion dollars. here 2022, according to the results of the survey
OC & C Strategy Consultants released last week.
The trend is due to an increase in the number of homes using smart speakers, from 13% to 55% in 2022.
It is likely that Amazon will continue to dominate this channel, suggest the results of the investigation. Amazon Echo currently has a penetration of 10% of homes in the United States, while Google Home has a market share of 4%. Seakers with Microsoft Cortana are in 2% of households.
Until now, Apple has not been a competitor because its HomePod has only recently come out on the market, and its Siri digital assistant does not match the capabilities of the company. IA of Google, according to OC & C.
Among the other results of the OC & C survey:
- 39% of consumers trust the selection of personalized products of intelligent speakers;
- 44% think that smart speakers offer the best selection of products;
- Smart pregnant owners are likely to be younger and affluent consumers who are more likely to have children; and
- Voice purchases tend to be stand-alone items of lower value.
The most commonly purchased items by voice are the goods:
- Grocery store – 20%;
- Entertainment – 19%;
- Electronics – 17 percent; and
- Clothing – 8%.
Eighty-five percent of consumers choose the products suggested by Amazon, OC & C found; 45% of voice-mailed grocery orders replace existing in-store or online purchases, and most are purchased by Amazon Fresh.
At the end of last year, OC & C surveyed 1,500 consumers in the United States and the United Kingdom, and adjusted the sample to account for chain biases.
OC & C Analytics recorded product sales rates over a period of one month for 2,000 products listed on Amazon, depending on the impact of the choice on business performance.
Opt for Amazon Choice
Maintaining Amazon Choice status will be crucial for consumer goods companies, OC & C found. Products listed as Amazon Choice will triple sales, while the loss of this status will lead to a 30% drop in sales.
Retailers need to make sure their products are easy to find because 69% of consumers know the exact product they want to buy.
Companies need to develop “skills” or connected apps that fit into current voice offerings. At present, there are only 39 such apps in the voice buying category.
Voice Shopping Pros and Cons
Voice shopping is the best choice for replenishing products that require regular replenishment, said Ben Fisher, CEO of
Magic + Co.
“It’s a lot easier to just say,” Hey, Alexa, send me a new detergent, “and he’ll know what you ordered previously,” he told the E-Commerce Times.
Starbucks has a similar ability, using Alexa, which allows customers to place their usual order, noted Fisher. Voice control “really connects people to the brand, discouraging them from going to the store and exploring new opportunities, which is crucial for companies that want to retain their brand.”
Magic + Co. helps leading brands, including Chobani, Jim Beam and Tide, implement voice technology to engage existing customers and target new ones. His clients have integrated voice into their products and used platforms such as Alexa and Google Home to communicate with their customers in their own home, said Fisher.
Shopping with voice “works pretty well if you have a history of buying established,” noted Michael Jude, research director at Stratecast / Frost & Sullivan.
However, “if you try to find a product, good luck,” he told the E-Commerce Times.
Yet, “using voice recognition and natural language processing, AI has emerged as the new user experience,” said Ray Wang, a senior analyst at Constellation Research.
Also for SMB Etailers
“Voice shopping” inherently favors large, recognized companies because it requires consumers to demand a specific brand, “said Jeff Siegel, spokesman for OC & C.
However, “Most features of the TAL and AI are available via Web API calls,” Jude Frost said. With the help of computer experts or skilled entrepreneurs, “SMEs can take advantage of the work that big companies like IBM and Google have already done to create their own retail systems.”
Voice technology prices are falling because of technological advances from Google, Microsoft, Amazon and Apple, Wang Wang told the E-Commerce Times
“The kits will be trivialized over the next 12 to 18 months,” he said. “In fact, they will be more integrated with the operating systems.”
Richard Adhikari has been an ECT News Network journalist since 2008. His areas of interest are cybersecurity, mobile technologies, CRM, databases, software development, the 39, mainframe and mid-range computing and application development. He has written and edited for many publications, including Information Week and Computerworld . He is the author of two books on client / server technology.