Voice technology as the fourth sales channel

Contents

Voice awareness and usage in Europe and US
Voice in the path to purchase
Using voice to trigger new decision
Brand implications of voice technology
Question brands should ask in the fourth sales channel

Voice awareness and usage in Europe and US

As decision behavior experts, we set out to examine consumer attitudes and adoption of voice technology in the U.S., U.K. and Germany. These countries represent the primary markets where Amazon, Google, Apple, and Microsoft have introduced voice platforms.

We conducted research into how consumers were using digital assistants on smartphones, smart speakers, as well as other connected devices. When we see how young people and families are embracing the technology, there’s no doubt it will become mainstream:

• An average of 40% of American, British and German users of voice technology have made at least one purchase via a digital assistant on their smartphone or smart speaker.
• Consumers younger than 35, especially younger parents are more likely to be daily users of voice on both smartphones and smart speakers.
• Most consumers are enthusiastically adopting voice technology and see themselves using it more frequently, and for a broader array of tasks, in the future

Voice in the path to purchase

The majority of consumers who have purchased products via voice do so out of curiosity, for convenience or for the entertainment factor. Concerns with accuracy and privacy remain strong barriers for brands to overcome in voice commerce. However, bear in mind that consumers are largely curious about using voice technology for shopping, with many intrigued at the potential ease it could bring to their daily routines, with 36% planning to increase their voice purchases in the next 12 months.

Using voice to trigger new decision behavior

We recommend thinking about voice in the context of consumer purchase habits:
›› Are consumers currently purchasing your products regularly, i.e. have they formed a habit?
›› Do consumers always purchase from you or do they still deliberate between your offer and the competition?
›› Do consumers only purchase from the competition or do they not purchase from the category at all?

We created a framework for brands to understand just that – the Habitual-Deliberate Loop. This loop captures different types of consumer decisions and purchasing habits.

What brand can do to adapt to the Voice Technology trends

On our “Alexa, order me…” Voice tech & consumer behavior US+EU” webinar, we discussed several trends and aspects of Voice Technology and its implications to both consumers and brands alike.

In regards to what brands can do to optimize their Voice channels, one of the areas of opportunities that brands can focus on to win in Voice is shopper marketing.

Voice assistants work based on search queries. In comparison to the internet, this is even more unstructured than online search because the way people say or request something verbally, it’s going to be more lengthy than what they would type in their search engine. It will be critical for brands to be found in this environment or make sure that consumers ask specifically for their brands. Results will be different if a consumer asks Alexa to order them a beer or Heineken.

So the question you should ask is “Does my brand have an “audio logo” (e.g. Intel’s five-tone sound which plays at the end of ads) or other mnemonics to differentiate itself when there is nothing visual to do so?”

Brands will also need to collaborate with retailers to stay on top of the list and actively promote consumer to request their brand; e.g. “Ask Alexa for…” Just as the introduction of eCommerce required fundamental changes to the way we think about marketing and the shopper journey, voice technology poses the same exciting challenges and opportunities.

Question brands should ask in the fourth sales channel

As you consider short-term marketing tactics focused on winning consumer preference with voice technology today, we understand you don’t want to lose sight of your long-term brand vision. Substantial qualitative and quantitative measures will be needed to fully understand the impact of voice technology on both consumer behavior and the company’s overall business growth. It’s clear that new market research and insights will be required for CPG, technology and telecommunications brands, but where do you begin? Read our with highlights of our recommendations.