Smart Speaker And Voice Ordering Gaining Popularity In Retail Business

Technology is being used by retailing firms to offer shoppers an alternative to both visiting the store and using a mobile app so that consumers are able to order and pay for the product that they love.

Voice enabled commerce is the new technology that is being used by retailers. Voice ordering of products with the help of voice assistant devices such as Amazon Alexa and Google Home is being supported for ordering by consumers by a range of retailers from grocers and eateries to movie ticket vendors.

A voice ordering system through Alexa was launched by Dunkin’ Donuts in August. The device can be used by consumers to order food form the stores of the company and skip the queues.

There are also others who have taken up similar measures as Dunkin’. Retailers are tapping into the voice assistant technology as a new channel of sale – encouraged by the growing trend among consumers to make voice assistants a part of their shopping lives.

According to data, a voice-controlled assistant is owned by almost 27 per cent of the consumers. It is forecast that by the end of 2018, there would be about 100 million of the smart speaker installed base which would be 2.5 times the number last year.

There would be further growth in the market for installed base and it is expected to touch the 225 million units mark by 2020 according to market research firm Canalys. The leaders in this growth, according to estimates of Canalys, would be the Amazon Echo which is predicted to account for 50 percent of the installed base in 2018. 30 percent of the installed devices would be accounted for by Google’s Home, expects Canalys while just 4 percent of the market would be captured by Apple’s HomePod in te same period.

Vincent Thielke, a research analyst for the firm, noted, “the U.S. is the world leader in smart speaker adoption. Amazon and Google know the power of an ecosystem lock-in and have been engaged in a fierce price war to try and build the largest installed base.”

According to data from equity securities research firm Consumer Intelligence Research Partners (CIRP), the owners of Amazon Echo are the most loyal of Amazon customer and are frequent buyers as well. The firm claimed that $1,700 is the average spend on Amazon every year by owners of Amazon’s Echo compared to $1,300 a year by Amazon Prime customers. CIRP’s co-founder Josh Lowitz said in the report, “We’ve long thought that Amazon is keenly focused on building increasingly loyal and frequent shopping customers, and Echo seems to promote that goal.”

Event tickets are bought through voice assistant by six percent of owners of such devices. A partnership with Fandango was struck by Google offering owners of Google Assistant to purchase tickets through the voice assistant. Lilian Rincon, product management director of Google Assistant, said in a press release, “We worked with Fandango so you can buy tickets to the movies using your voice — just say ‘buy tickets’ once you’ve decided which movie to see. Or if you already have a movie in mind, you can just say ‘Hey Google, get me tickets for … ’ and insert the name of the movie you want to see.”

Voice assistants are also being increasingly used by consumers to purchase for groceries and to place and food orders.

(Adapted form PYMNTS.com)

Advertisements


Categories: Creativity, Economy & Finance, Entrepreneurship, Strategy, Sustainability, Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: