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Finding Your Voice How Voice Technology Will Transform Retail

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Finding Your Voice How Voice Technology Will Transform Retail TRANSFORMING RETAIL INTELLIGENCE "Where's my nearest "Where's my supermarlket?" delivery?" Finding your voice How voice technology will transform retail "Add eggs to "Does this come in my baslket" a bigger size?" Alexa, how will voice technology transform retail? This is the question on many retailers’ lips as voice-enabled devices such as Amazon Echo and Google Home make their way into homes across the nation. n this special report – the first in Retail Millennial 20/20 event last month. Voice is going to be Week’s Transformative Tech series that And retailers expect this to transform explores the far-reaching impact of new shopping behaviour. enormously disruptive technology across retail – we uncover “Around 10% of UK households now Ihow voice technology will change the way have a smart speaker device, and we think and retailers are consumers search and buy products, and voice activation is set to be one of the next big what retailers should do to take advantage. retail shifts when it comes to technology,” significantly Amazon sold more than 33 million Echo says Tesco Labs head of research Paul underestimating smart speakers last year while Google has Wilkinson. shifted more than one Google Home device Schuh director of ecommerce and how quickly it’s per-second since it launched last October. customer experience Sean McKee agrees: The voice-enabled assistants on these “We’re already seeing customers using voice going to come devices have been hailed as the most technology to search for products. Rob Barnes, Accenture important technological development since “We can see how shoppers would use the iPhone, and are tipped to drive a similar voice in a number of ways – from searching change in behaviour. for specific products to tracking orders.” “There’s a whole generation right now, Read on to find out how voice tech- where the youth is developing this idea nology will transform search, shopping and where it’s normal to speak with your house,” engagement, customer service, delivery and Max Amordeluso, EU lead evangelist for distribution, and what you should be doing Alexa at Amazon, told delegates at the about it. Chapter one: The potential of voice Voice technology has been hailed as the new battleground, with many commentators believing voice-enabled assistants are the most important development since the iPhone. he technology has actually been on “94% of people say they’re now satis- out by voice. the scene for some time. Voice capa- fied with the interaction,” says Accenture But it is the emergence of the voice- bilities have been built into Google managing director of retail technology enabled assistant – pioneered by Amazon’s search since 2009, while Apple consulting Rob Barnes. Alexa – that has stimulated a big uptick in Tintroduced Siri on its iPhone back in 2011. “In the early days, when we used voice on the use of voice technology. And usage is set However, recent advances in speech our phones and you’d ask to call your mum to explode. recognition and natural language processes and you’d be calling Nigel from the office, Analysts at RBC Capital Markets esti- have helped make voice an essential tool for the ineffectiveness would stop you using it. mated that in 2017 Amazon sold 33 million many consumers. There’s been a tipping point.” Echo smart speaker devices, which host its In fact, satisfaction levels for voice interac- In fact, Google says that 20% of all digital assistant Alexa. tions are now relatively high. Android searches in the US are now carried “There’s a whole generation right now, where the youth is developing this idea where it’s normal to speak with your house,” Most common activities using voice technology Max Amordeluso, EU lead evangelist for Alexa at Amazon, told delegates at the Millennial 20/20 event last month. Play music 95% Amazon is not alone. All the major tech- nology platforms – Google, Apple, Microsoft and Samsung – are vying for a slice of the Weather/news 92% voice assistant market. The technology is becoming so wide- spread that research consultancy Ovum General questions 88% estimates by 2021 there will be more digital assistants installed in devices than there are Timers/alarms/shopping lists 77% people on the planet. Multiple occasions – 16% Voice and shopping Make a purchase Made one purchase – 12% Playing music or asking what the weather Add to basket to buy online – 17% is like may still be the most common uses of voice-enabled devices, but users are finding Digital subscriptions 44% new functions, including searching for and buying products. Amordeluso revealed that 42% of Smart home devices 41% Amazon Echo users had added an item to a shopping list. 0 20 40 60 80 100 Google UK head of search Alessandra % respondents Source: OC&C Alari says: “We are beginning to see voice Chapter one: The potential of voice become an everyday, accepted behaviour, “Around 10% of UK households now be seen, such as clothes. moving from an experimental tool and party have a smart speaker device, and we think And voice technology will not be limited trick to becoming more fully embedded in voice activation is set to be one of the next big to smart speakers. how we live our lives.” retail shifts when it comes to technology,” Amazon has opened up its voice frame- Consumers aren’t just searching for prod- he says. work and there are now more than 50 prod- ucts via voice – they are also buying them. OC&C estimates that $5bn (£4.4bn) will be ucts – from cars to kitchen appliances – that According to research by consultancy OC&C, spent through voice commerce in the UK by are capable of giving Alexa a voice. 16% of smart speaker users have bought 2022, representing 3% of all online spend. Already car manufacturers, including products via the device more than once. Ford, BMW, Mini, Seat, Skoda and Toyota, Tesco Labs head of technology research New behaviours emerge are integrating Alexa into their vehicles. Paul Wilkinson predicts that voice will have Voice is already changing how people shop. Vista Retail Support technical services a big impact on retail. Tesco director of online business services director James Pepper says this could enable Rafael Orta told IGD Online and Digital shoppers to order products in their car and By 2021, there will Summit late last year: “What we’re seeing is have sat-nav systems instantly programmed a more continuous basket construction.” with directions to the nearest location to be more digital Shopping by voice is in its infancy and the collect from. bulk of orders are made by consumers who Barnes says: “Voice is going to be enor- assistants than know precisely what they want to buy. mously disruptive and retailers are signifi- As a result, groceries and items such as cantly underestimating how quickly it’s people on the planet electronics and homewares are the most going to come.” Estimate by common purchases. Retailers need to understand how their However, the next generation of Google customers will use voice technology on a technology research and Amazon voice-enabled devices have day-to-day basis and determine how this in-built screens, which should open up will impact interactions with their brand, or consultancy Ovum voice commerce across products that need to risk being left behind. Meet the voice assistants Name: Alexa Name: Google Assistant Name: Siri Name: Cortana Powered by: Amazon Powered by: Google Powered by: Apple Powered by: Microsoft Launched: 2014 for US Amazon Launched: 2016 Launched: 2011 Launched: 2014 Prime members, 2016 in UK Compatible devices: All modern Compatible devices: iPhone, Apple Compatible devices: Microsoft Compatible devices: Echo and Echo Android phones and Google Home Watch, AirPods and HomePod phones, Windows 10 PCs and Dot speakers, Echo Show (with speakers (launched 2017) speaker (launched in February Invoke speakers screen), Echo Look (with camera) Key feature: Access to all of Google’s 2018) Key feature: Integrated with and Echo Tap intelligence, and no need to teach Key feature: Integrated with iOS (the Windows Key feature: The Alexa devices can it skills Apple operating software) hear you in noisy environments Name: Bixby Name: Duer Name: LingLong Name: AliGenie Powered by: Samsung Powered by: Chinese Powered by: Chinese ecommerce Powered by: Alibaba Launched: 2017 search engine giant giant JD.com Launched: 2017 Compatible devices: Samsung Baidu Launched: 2016 Compatible devices: TMall Genie, smartphones and Family Hub 2.0 Launched: 2017 Compatible devices: DingDong A1, Genie FireEye refrigerators Compatible devices: Little Fish A2 and A3 Key features: Voice/print Key feature: Understands speakers (video and camera), Key feature: English lessons for recognition to ensure only natural language Sengled smart lamp speaker, PopIn children authorised users Aladdin smart lamp, and Huawei can make orders and Xiaomi phones. using the device Key feature: Takes users’ previous searches and location into account when providing assistance Chapter two: Voice tech and search Consumers are increasingly using voice to search for products, companies and services, with media analytics firm ComScore forecasting that half of all searches will be carried out this way in just two years. eople tend to search differently via to a wide range of queries. “If they think the results are biased and not voice than they do through text These answer boxes also determine the tailored to them, they’ll not continue to use search as, unsurprisingly, they use a answers given to Google Home users. the device,” he says. more conversational tone. Unlike the world of text search, businesses “The platform businesses don’t want PAlessandra Alari, head of search at Google are unable to pay for voice search terms that.
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