Brands see voice ordering as more opportunity than threat
Through a special arrangement, presented here for discussion is a summary of articles from MarketingCharts, which provides up-to-the-minute data and research to marketers.
Brands are viewing consumers’ increased comfort with voice assistants as less of a threat than an opportunity, per a survey of more than 500 U.S. brands from Feedvisor.
Sixty-nine percent of respondents said that they either somewhat or strongly agreed that voice ordering is an opportunity and will play a part in future sales strategies.
Feedvisor wrote in the report, “Given that voice searches are powered by natural language processes, brands can adapt content and ad copy to account for these high-value searches. This will provide them with an advantage over brands that are not optimizing for voice search and enable them to unearth incremental profits via this additional point of entry to customers.”
Still, 45 percent somewhat or strongly agreed that voice ordering was a threat.
Data from Digitas suggests one such threat to brand loyalty. When using voice ordering, 85 percent of consumers admitted that instead of purchasing the specific brand they requested, they have purchased the first option selected by the voice assistant on at least one occasion,which according to Gartner L2, often ends up being Amazon’s own brand when Alexa is being used.
Indeed, much of Feedvisor’s report explored the risks and benefits of working with Amazon, which continues to dominate the smart speaker space. According to survey of 500 U.S. owners of the HomePod, Amazon Echo and Google Home at the start of this year from Consumer Intelligence Research Partners, 70 percent owned an Amazon Echo; 24 percent, Google Home; and six percent, Apple HomePod.
The Feedvisor survey found:
- When selling on Amazon, two-thirds of participants agreed (33 percent somewhat, 33 percent strongly) that competition with Amazon’s private label products was a concern.
- Seven in 10 agreed either somewhat or strongly that competition from other brands on Amazon is a leading concern.
- The vast majority of brands either currently selling on Amazon (97 percent) or not currently on Amazon (84 percent) believe that one of Amazon’s benefits is in acquiring new customers.
- Of the surveyed brands that sell on Amazon, more than half of their total e-commerce sales come from the platform.
- Retailers See Voice Ordering As More Opportunity Than Threat – MarketingCharts
- Brands & Amazon: Insights, Opportunities, and Concerns in the Age of E-Commerce – Feedvisor
- One-Third of Adults Report Owning A Smart Speaker, And They’re Comfortable With Voice Tech – MarketingCharts
- Voice Commerce Might Present A Loyalty Problem for Brands, But Not Immediately – MarketingCharts
- Brand Loyalty vs. Virtual Voice Assistants – Digitas
- Homepod Grabs A Little Share – Consumer Intelligence Research Partners
DISCUSSION QUESTIONS: Is voice ordering more of an opportunity or threat for brands? Should brands be any more concerned if Amazon continues to dominate the smart speaker space versus Google, Apple or another platform?