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Is Alexa the future for consumer goods?

Is Alexa the future for consumer goods?
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Matt Morrisonby Matt Morrison
Social Media Marketing Manger

30 Jan 2018

I’ve been watching the whole Alexa situation for a while now, and I must admit it has got me pretty excited about the future of retail, in particular within the FMCG sector, and how consumer trends are going to rapidly change over the next 5 years.

So many articles and studies I have read highlight how consumers who use voice technology such as Alexa, are likely to spend 500% more!!!

“Shopping via Voice Assistants Entices Customers to Spend 500% More” – Retailtechnews.com

And why wouldn’t it have a positive impact on consumer spending, fundamentally consumers are lazy, well I know I am. So, anything that can make my life easier and more convenient, has me totally sold. I mean who wouldn't prefer their food shopping to take 5 mins from the comfort of their bed and done while wearing nothing but their pants. Awesome right, and I’m sure the majority of young consumers coming through the ranks, who are more and more technology dependant, will think so too.

However, and this is a big however. Have you tried using Alexa? My Irish Friend and his family have one, and it does not appear to be that convenient just yet. Listening to my 2nd mum, with her strong Limerick accent try and talk to Alexa, who is all but an arm’s length away is probably the funniest and most frustrating things I have ever seen.

Jean - “Alexa…. Radio 2”

Alexa - “……” (continues blasting some random grime track on Radio 1)

Jean – “ALEXA…. Radio 2”

Alexa – “……slight beeping.” (nothing happens)

Jean – “Jesus Alexa put on Radio 2 will ya”

Alexa – “……sorry can’t find…”

Jean now stands up walks one step towards Alexa…

Jean: “ALEXA PLAY RADIO FECKIN 2 WILL YA”

At this point I’m literally in stiches with my mate, who thanks to his upbringing being English can get Alexa to understand him and help his poor mother out. But, you get where I’m going with this, although the technology is awesome and I’m sure it will do wonders for all us in terms of making our lives better, I can still see a lot of people (Irish in particular) throwing Alexa clean out the window.

Still although apart from the minor accent recognition issue with voice technology, retailers should most definitely be looking to invest into some form of app that links with Alexa, because the benefits could be out of this world.

"The study, run by Linc Global and Rakuten, shows that Echo owners increased their purchases of consumer products, like diapers, by 13.5% in the third quarter of 2017, up from the 7.5% jump seen in the second quarter of this year. Those companies also saw an unusually high 60% upsell rate, meaning the consumers bought more products from the same brand after their Echo purchase." – CNBC.com

Just for funsies, here’s an Italian grandmother trying to talk to google home…. this is equally as hilarious.

 
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