We are in the phase, where online shopping has created a boom in the market. People all over the world like to browse on their smartphones and laptops for the product they want and finally purchase if they like it. Amazon echo and Google home technology which are known to be voice activated devices are being considered by many shoppers these days. This in coming future is predicted to become a ground-breaking force in retail.
One-tenth of the families in the UK has already been using this technology. This number may increase by 2022. Approximately 48% of the online crowd is estimated to use the smart speakers that may generate a business of £3.5 billion.
Amazon’s Echo technology as compared to the Google’s home device has derived much influence in the market. 8% of the household in the UK own the Amazon’s smart speakers whereas only 2% of the household’s use Google home device in the UK.
Majority of the products that are ordered through this voice technology are either repeat orders or are some specific known products. The voice technology has limited browsing capabilities and so the purchases that happen through this technology are mainly of groceries and low-value FMCG items.
If a brand has to build a position in the voice commerce sector then that brand should achieve the status of Amazon’s “choice “. When the browsing capability is limited Amazon offers recommendations to the audience while prioritizing “Amazon Choice”. The product that is recommended usually would be either popular and well-priced with good customer reviews or previously purchased. There are 85% chances that customer would prefer the recommended product, which may boost a sellers sale.
Now how a retailer can get going with the smart speakers and increase his sales
To start with, retailers can develop “skills” that is close to mobile apps and can be accessed via these smart speakers. As per the present scenario, there is not much investment seen in this channel by the retailers. Shopping category of Amazon echo is said to have approximately 39 skills.
In order to attract customers, retailers can fund on customers “distressed” and spontaneous purchases. The seller can provide some new recipes and recommend recipe related product purchases to the customers.
Building trust among the audience is also a vital part for the retailer to focus on while dealing with customers who are using smart speakers. As per stats, only 39% of the customers trust in the “personalized product selection of smart speakers while less than 44% of the smart speaker crowd believe that it offers best value section of products.