Amazon dominates today’s retail landscape. If you’re like most U.S. consumers, you probably order regularly from the marketplace. The 2018 Future of Retail report reveals that 42 percent of consumers receive 1-2 packages per week, and that number rises as high as 57 percent for those ages 26-35.
And our research reveals that Amazon leads the charge in another area significantly reshaping how customers interact with brands: voice commerce. As more users adopt voice assistants, they expect more from these devices than the ability to quickly play music or ask for the time. This means retailers must adapt to a zero UI model of e-commerce — one that operates with no visual interface — sooner rather than later.
In our blog series about this year’s Future of Retail report, we continue to examine Amazon’s lasting impact on customer expectations. Here’s what our research reveals about voice commerce and the implications for retailers:
- Digital assistants will become household staples. Twenty-four percent of U.S. adults (nearly 39 million consumers) own a voice-controlled device. And typically once consumers purchase their first device, they’re eager for more. Of those who own a voice-controlled device, nearly two in five (39 percent) report having at least two devices, and 7 percent report owning four or more devices. Sixty-four percent of consumers who own a voice-controlled device use it at least once a week and nearly one in five (18 percent) use it at least three times a day.
- Voice-controlled assistants are everywhere (yes, even in the bathroom). The most popular places consumers use their voice-controlled assistants in their homes include the living room (57 percent), kitchen (33 percent) and master bedroom (27 percent). They are open to keeping these devices in more private places as well, with 14 percent of consumers placing them in their bathrooms. The normalization of voice-controlled devices over the past year means consumers are more comfortable interacting with voice assistants in many different ways throughout their homes.
- Customers aren’t using devices to their full potential yet. Voice assistants are popular, but most owners use them for basic tasks only. The most popular function? Playing music. Fifty-seven percent of consumers identify that as their go-to task. Our study shows consumers use voice-controlled devices more often as an assistant, rather than a commerce device. Forty-eight percent report using a voice-controlled device to answer a question, 38 percent check the time and 27 percent create a shopping list. In the past year, more people used Amazon Alexa to tell jokes than to connect to their smart home (25 percent vs. 20 percent).
- Voice commerce is on the rise. As consumers become more comfortable integrating voice into their daily lives, commerce is set to grow in popularity. But barriers to adoption still exist. When asked what might prevent them from shopping via voice, consumers note concerns about security (45 percent), privacy (42 percent) and a lack of visuals like images and videos (35 percent).
Voice-controlled devices are making major impacts on consumer lifestyles in a very short time. Retailers that understand how customers interact with voice assistants now may be more likely to overcome barriers to adoption down the road. To learn more about voice commerce and what it means for retail, download the full Walker Sands 2018 Future of Retail here. And follow along for the last installment of our three-part blog series.
Another year, another round of innovations within the retail industry. And this year, the industry’s evolution expands commerce implications beyond the bounds of retail.
Since 2014, we’ve studied some of the most significant developments within the world of retail, commerce and the supply chain. In the past, our reports have shed light on important upcoming retail trends such as the use of drones or the evolution of mobile shopping.
Our 2018 Future of Retail report also takes a look at new and emerging retail technologies. But this year, we focused on connected lifestyles, the expansion of Amazon, the dramatic rise of voice and the need for supply chain optimization.
As consumers embrace connected technology such as digital assistants and hands-free devices, brands and retailers have the opportunity to cater to consumers in new and exciting ways. What’s more, we found that leading retailers are influencing sectors outside of traditional retail – from grocery to pharmaceuticals.
Hungry for more insights? Dig into our key findings below, and check back for two more blog posts that offer a deeper look into some of our most important findings.
- Younger consumers aren’t afraid to break with tradition. Unlike generations before them, digitally savvy millennials opt for tools and channels that offer information at a moment’s notice. In fact, only one out of four consumers ages 18-25 have cable. This demand for greater value and convenience has also helped drive ownership of connected home devices all the way up to 93 percent.
- Amazon shapes consumer expectations. Forty-two percent of shoppers receive one or two shipments from Amazon each week. And as the retail giant expands its services with acquisitions like Whole Foods, retailers face pressure to try new strategies for attracting customers – or risk losing wallet share.
- Digital assistants are far from novelty. Nearly two-thirds of consumers who own a voice-controlled device (64 percent) use it at least once a week, and 50 percent have made a voice-controlled purchase in the past year. As these devices become the norm, a strategy to communicate with customers and enable commerce across channels is a must.
- When it comes to delivery, speed is the name of the game. Almost 45 percent of consumers have used same-day delivery during the past year. And many consumers are pleased with the speed of Amazon’s delivery services. While 15 percent of consumers say online retailers always meet their expectations for speed of delivery, twice as many say the same about Amazon. Retailers aiming to attract new customers would be wise to satisfy customers’ growing need for speed.
- Amazon is expanding beyond traditional retail. There’s plenty of excitement surrounding Amazon’s foray into new industries. In fact, more than a third of consumers (35 percent) would use Amazon to fill prescription orders online. Wondering what’s driving this growth? Look no further than the speed and simplicity consumers have become accustomed to. Sixty-one percent of consumers cite the ability to ship quickly as a top reason they turn toward Amazon for prescriptions. Meanwhile, 43 percent enjoy an easier ordering process due to Amazon’s access to customer information.
The commerce experience isn’t as cut and dry as it once was. New technology has set the stage for a connected lifestyle in which consumers can research and make purchases more easily than ever before. As competitors look to carry over that ease and convenience to other industries, retailers must be prepared to do the same.
To learn more about this new age of commerce and how you can cater to the lifestyles of today’s consumers, download the full Walker Sands 2018 Future of Retail here. And check back for the second installment of our three-part blog series.
Over the past several years, Walker Sands’ VP Dave Parro and I have taken a closer look at how commerce is changing through our annual Future of Retail report.
While last year’s version was focused on the backend changes happening to support innovations on the retail front, this year’s report takes a closer look at the dramatic shifts happening in consumers themselves, leading to a future of connected consumers, connected commerce and changing connected experiences.
In this three-part blog series, I’ll take you through some of the key findings from the study, starting with the connected consumer.
A lot has happened since the Future of Retail report first launched in January 2014.
Online ordering has become the norm, fast and free shipping is expected and storefronts have started to disappear. Still, what’s driving this evolution in commerce seems to have hit warp speed with the introduction of AI, machine learning and voice-ordering technologies over the past year or so.
Today’s consumer is vastly different from the consumer of just a couple of years ago. What used to be a distant idea of a ‘smart home’ is now seemingly here to stay, and integrations of data to the supply chain have made sure no consumer is without the goods they need in a fast-paced world.
Three big takeaways from this year’s report on the connected consumer include:
- More than a quarter of consumers (27 percent) now own some kind of in-home smart device, including smart appliances (16 percent), thermostats (14 percent) and lights (13 percent). And as retailers are paying closer attention to consumer data for personalized experiences, consumers are more focused on their own data, too – 18 percent now own wearable fitness devices and 13 percent own smartwatches.
- Today’s connected consumer is used to getting their information on demand. Consumers today are cord cutters, with more consumers now reporting they own a digital tv subscription (64 percent) than a traditional cable subscription (52 percent). Nearly a third (32 percent) own a streaming device like Apple TV or Roku.
- The connected consumer is getting used to voice-based technology. Perhaps the biggest innovation in the connected consumer lifestyle has happened in just the past year with mainstream adoption of voice-controlled devices like the Amazon Echo and Google Home. Nearly a fourth of consumers (24 percent) now own in-home voice-controlled device and another 20 percent plan to purchase one in the next year.
The same innovations that are changing retail are also changing the way consumers think and interact in their everyday — completely disrupting the landscape retailers have gotten comfortable with.
As new innovations in IoT, machine learning and voice technology arrive on the scene, the way consumers expect to be engaged will also continue to change. Younger consumers are already more open to these kinds of devices, opening new opportunities for retailers and brands in the future of commerce.
To learn more about the connected consumer and how they’re impacting the future of commerce, download the full Walker Sands 2017 Future of Retail Study here. Also stay tuned for additional blog posts and analysis as a part of our three-part series.
Just about every business decision – no matter the magnitude or industry – hinges on a single key ingredient: trust.
The recommendations of individuals with significant industry and social followings carry heavy weight with customers, sparking a growing desire to capitalize on the credibility of an influencer’s backing. To help cultivate trust among potential customers, a growing number of B2B brands are wisely turning toward influencer marketing.
While sales professionals and marketing collateral can certainly help raise awareness of specific products or services, buyers inherently trust people over press releases. In fact, 84 percent of B2B buyers start the purchasing process with a referral.
In our new whitepaper, “Under the Influence: A B2B Brand Guide to Influencer Marketing,” we’ve outlined the steps you can take to bring influencer marketing to your business. From executing influencer marketing initiatives to measuring success, discover how our approach to B2B influencer marketing can jumpstart buyer interest in new products and initiatives.
Finding a fit
When done right, influencer marketing can be a win-win for both brands and the influencers they work with. Businesses have their messages amplified while influencers get their hands on data-based insights that can help grow their social following.
But as in any other relationship, fit is crucial.
Before reaching out to a potential influencer, take a few minutes to ask yourself, “Is this influencer’s content and audience relevant to my business?” Although it’s always tempting to pursue a well-known thought leader, there’s no guarantee they’ll be able to make a big difference in your brand’s bottom line. Keep an eye out for influencers who regularly engage a large portion of your target audience using a tone that aligns with your brand.
Pulling the trigger
Once you’ve identified which influencers you’d like to work with, the next step is to set aside the time and budget needed to bring a campaign to life. Thinking about getting an influencer to promote your next product launch? We recommend spending at least two months researching and reaching out to relevant analysts. The more ambitious the influencer marketing initiative, the more time you’ll need.
When it comes to budget, many of the same rules apply. If, for example, you want an influencer’s help producing a video, be prepared to pay more than you would for a simple mention in their blog post. While nurturing an organic influencer relationship may help you save on costs, it will also take more time. By developing a sound strategy for your campaign and clearly identifying the desired outcomes of the relationship, you can determine how much time and budget are needed to execute a successful campaign.
Measuring the success of your influencer marketing campaign will not only provide insight into an initiative’s ROI, but also highlight areas for improvement moving forward.
Since measurements can vary based on the type of influencer marketing investment, we’ve created a different set of criteria for both ongoing and campaign-based programs. From the frequency of influencer interactions to share of voice among target influencers, each data point can help determine whether the campaign helped move you one step closer toward your goals.
Eager to learn more about influencer marketing? Download our whitepaper, “Under the Influence: A B2B Brand Guide to Influencer Marketing,” and stay tuned for more content surrounding the B2B approach to influencer marketing.
It’s been a rough couple of years for traditional retail. Companies like Amazon have upended the retail structure, and as consumers continue to turn to e-commerce, brick-and-mortar retailers must adapt to survive.
To do so, many companies are turning to hot-button tactics like virtual reality (VR) and augmented reality (AR), simple or even nonexistent payment tactics (hello ApplePay and Amazon Go), and more. However, these strategies are more aspirational than practical, as they require heavy infusions of capital, huge upgrades to existing infrastructure and widespread consumer adoption to be successful.
While retailers work to make these long-term dreams a reality, there are several trends brick-and-mortar retailers can pursue to stay relevant and competitive in the more immediate future:
1. A Focus on Stores as Showrooms
As the purchase process continues to migrate online, we’re seeing brick-and-mortar stores used as a way for consumers to feel and see products before they pull out their phones and make a purchase. This approach works best for categories like furniture, where people are traditionally hesitant to purchase without physically interacting with products.
Examples of this strategy include Apple stores, which focus more on showcasing products and what they can do, or Bonobos’ guideshops, which exist purely as a way for consumers to interact with the web retailers’ goods (you can’t even walk away with any merchandise, but you can order clothing).