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Hey, Siri®…Alexa™…Google Assistant™… how voice commerce is helping retailers build sales

Joe Kellagher

04/01/2024

cloud connectivity | Blog Entry | Blog post

Voice-enabled technology has transformed the way consumers use their digital devices. Our voices can schedule an appointment, play a favorite song, turn up the thermostat and more. Now voice technology has expanded into commerce — and voice commerce is finding application in the retail space. 

Say the word and you can activate a voice assistant to unlock an entire shopping experience, from product browsing to ordering and payment. What’s more, with the ever-increasing number of voice-activated devices in homes — such as smart speakers and digital hubs — it’s easy for retailers to incorporate shopping experiences into consumers’ daily lives. 

In fact, the number of digital assistants is estimated to reach 8.4 billion by 2024. 

But here’s the real opportunity for retailers: It’s not just that there are more voice-enabled devices — it’s that more people are using them to shop. In 2018, the voice commerce market was worth about $2 billion. That number reached $19.4 billion in the US in 2023 — a 10-fold increase in just five years. So, if you haven’t already, now is the time to embrace voice commerce.

How does voice commerce technology work?

When a user speaks a command through a digital assistant, the system converts the spoken words to text using Natural Language Processing (NLP). Then artificial intelligence (AI) kicks in to determine the meaning of the text and the required action. For example, the shopper may say “Find men’s Levi’s jeans size 32 by 34.” The technology will search the internet — or a specific website if asked — find a result and then speak it back to the user. 

There are many ways that retailers can make their products and catalogs searchable by voice, including the use of APIs. Plus, voice technology can seamlessly integrate with today’s leading ecommerce platforms.

When it’s time to order, voice commerce technology can simplify what is typically a multi-step online transaction. If an existing customer is shopping, they can order with a single voice command using a payment method that is already stored in their account profile. 

Why do consumers love it? 

Hands-free shopping experiences have allowed voice commerce to emerge as a legitimate shopping channel. The technology is there, but novelty alone isn’t enough to make it last. What makes voice commerce such an important trend is that it delivers two benefits that consumers value more than ever: time-saving and convenience. 

Consumers now rely on voice capabilities to find new products, add to cart, create shopping lists, set purchase reminders, check product reviews, place orders and track delivery status. With that level of buying ease comes an increase in the volume of individual orders and the potential for greater customer lifetime value (LTV). 

Over the course of any given day, users may speak orders as many times as a need comes to mind. Looking to upgrade your workout sneakers? Ask Siri® to search for your favorite brand and size when it’s top of mind. Are paper towels running low? Tell Alexa to add it to the grocery list. Just remember that next week is your turn to provide the snack for your child’s classroom. Ask Google Assistant™ to set a purchase reminder for pretzels. 

In a world where e-commerce continues to grow, what’s faster than saying what you want to buy? With voice-enabled technology surrounding us in more places, it’s easier than ever to shop at home, in the car, on the treadmill or while walking the dog. 

Why do retailers love it? 

Simply put, voice commerce makes it easier to order.  It can also deliver a more personalized user experience by recommending products based on past purchases and providing reminders when it’s time to reorder.

Voice commerce can be a more secure way to transact business because voice biometric technology allows systems to identify a user based on unique vocal features. That may prove to be a lot harder for hackers to replicate than a username or password. 

How retailers are putting voice commerce to work 

Regarding personalization, there are many ways to tailor the shopping experience to each customer, solve unique needs and drive greater sales. Here are some examples of how voice commerce is paying off for major brands: 

  • Beauty stores use a virtual artist to identify customers’ skin tone and facial features and then recommend the right products. Makeup tutorial videos are available to be searched by voice command. 
  • In the apparel space, brands now have a virtual stylist to suggest outfits for customers. 
  • Retailers have partnered with Google Assistant™ to give customers the ability to tap into their purchase history and add grocery items right to their online cart.
  • Spirits brands give consumers the ability to confirm their age, purchase a bottle and even explore a guided tasting tutorial via voice command. The voice commerce platform can also make product recommendations after consumers answer a short series of questions. 
  • Carmakers launched an in-car experience where consumers can use their voice to purchase gas, parking, or order food.
  • A national pizza chain created a voice assistant that lets hungry consumers order a pizza for delivery and follow its progress to their front door.

The proof is in the numbers

Voice commerce helps consumers shop, make purchases and track their orders faster than ever. US voice assistant users increased to 145 million by the end of 2023, according to e-marketer. Smartphones lead the way, and users will increase by 17 million in 2027, to 162 million, or just over half of all internet users.

Getting started with voice commerce 

There are a few foundational components necessary to make voice commerce happen. Retailers need robust data capture and storage systems for customer information, orders and product and inventory information. 

For voice commerce transactions to happen in real-time — as consumers expect — all that data needs to be cloud-based and instantly accessible for AI and machine learning (ML) to act upon the voice command. That’s why a strong network infrastructure is the foundation for voice commerce. Retailers need a robust, modern network to deliver reliable speed with low latency, fiber internet, cloud connectivity, storage and security. Without any one of those factors. Retailers may be at risk of delivering bad customer experiences faster than a consumer can say “add to cart.” It’s also critical that retailers have a dedicated connection to process payments. 

Spectrum Enterprise collaborates with companies of all sizes to build the infrastructure to support the advanced data and processing needs required for voice commerce. Retailers can leverage fiber internet, cloud connectivity and other managed network services to help them break down data silos, understand and respond to customers faster and optimize supply chains — across their entire retail footprint. 

Discover how to optimize retail location networks to enable the best customer experience possible. 

 

Amazon, Alexa, and all related marks are trademarks of Amazon.com, Inc. or its affiliates.

Google Assistant™ is a trademark of Google LLC.

Google and Google Docs are trademarks of Google LLC and this blog post is not endorsed by or affiliated with Google in any way.

 

 

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Joe Kellagher

As Senior Director, Data Product Development for Spectrum Enterprise, Joe designs data and networking services that help businesses solve their IT and business challenges. He has over 25 years of experience in product development, management and marketing. Joe holds a master’s degree in communications technology from The American Institute, a master’s degree in telecommunications from George Washington University and has completed the MIT Internet of Things (IoT) Executive Program.