Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress

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Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
TRANSFORMING RETAIL INTELLIGENCE

 "Where's my nearest                             "Where's my
   supermarlket?"                                 delivery?"

         Finding your voice
              How voice technology will transform retail

        "Add eggs to                           "Does this come in
         my baslket"                             a bigger size?"
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Alexa, how will voice
technology transform retail?
This is the question on many retailers’ lips as voice-enabled
devices such as Amazon Echo and Google Home make their
way into homes across the nation.

I
   n this special report – the first in Retail
   Week’s Transformative Tech series that
                                                 Millennial 20/20 event last month.
                                                    And retailers expect this to transform
                                                                                                     Voice is going to be
   explores the far-reaching impact of new       shopping behaviour.                                 enormously disruptive
   technology across retail – we uncover
how voice technology will change the way
                                                    “Around 10% of UK households now
                                                 have a smart speaker device, and we think           and retailers are
consumers search and buy products, and
what retailers should do to take advantage.
                                                 voice activation is set to be one of the next big
                                                 retail shifts when it comes to technology,”
                                                                                                     significantly
  Amazon sold more than 33 million Echo          says Tesco Labs head of research Paul               underestimating
smart speakers last year while Google has        Wilkinson.
shifted more than one Google Home device            Schuh director of ecommerce and                  how quickly it’s
per-second since it launched last October.
  The voice-enabled assistants on these
                                                 customer experience Sean McKee agrees:
                                                 “We’re already seeing customers using voice
                                                                                                     going to come
devices have been hailed as the most
important technological development since
                                                 technology to search for products.
                                                    “We can see how shoppers would use
                                                                                                     Rob Barnes, Accenture
the iPhone, and are tipped to drive a similar    voice in a number of ways – from searching
change in behaviour.                             for specific products to tracking orders.”
  “There’s a whole generation right now,            Read on to find out how voice tech-
where the youth is developing this idea          nology will transform search, shopping and
where it’s normal to speak with your house,”     engagement, customer service, delivery and
Max Amordeluso, EU lead evangelist for           distribution, and what you should be doing
Alexa at Amazon, told delegates at the           about it.
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Chapter one:
The potential of voice
Voice technology has been hailed as the new battleground,
with many commentators believing voice-enabled assistants
are the most important development since the iPhone.

T
         he technology has actually been on               “94% of people say they’re now satis-               out by voice.
         the scene for some time. Voice capa-          fied with the interaction,” says Accenture                But it is the emergence of the voice-
         bilities have been built into Google          managing director of retail technology                 enabled assistant – pioneered by Amazon’s
         search since 2009, while Apple                consulting Rob Barnes.                                 Alexa – that has stimulated a big uptick in
introduced Siri on its iPhone back in 2011.               “In the early days, when we used voice on           the use of voice technology. And usage is set
   However, recent advances in speech                  our phones and you’d ask to call your mum              to explode.
recognition and natural language processes             and you’d be calling Nigel from the office,               Analysts at RBC Capital Markets esti-
have helped make voice an essential tool for           the ineffectiveness would stop you using it.           mated that in 2017 Amazon sold 33 million
many consumers.                                        There’s been a tipping point.”                         Echo smart speaker devices, which host its
   In fact, satisfaction levels for voice interac-        In fact, Google says that 20% of all                digital assistant Alexa.
tions are now relatively high.                         Android searches in the US are now carried                “There’s a whole generation right now,
                                                                                                              where the youth is developing this idea
                                                                                                              where it’s normal to speak with your house,”
    Most common activities using voice technology                                                             Max Amordeluso, EU lead evangelist for
                                                                                                              Alexa at Amazon, told delegates at the
                                                                                                              Millennial 20/20 event last month.
        Play music                                                                       95%                     Amazon is not alone. All the major tech-
                                                                                                              nology platforms – Google, Apple, Microsoft
                                                                                                              and Samsung – are vying for a slice of the
        Weather/news                                                               92%                        voice assistant market.
                                                                                                                 The technology is becoming so wide-
                                                                                                              spread that research consultancy Ovum
        General questions                                                      88%                            estimates by 2021 there will be more digital
                                                                                                              assistants installed in devices than there are
        Timers/alarms/shopping lists                                 77%                                      people on the planet.

                                                     Multiple occasions – 16%                                 Voice and shopping
        Make a purchase                              Made one purchase – 12%                                  Playing music or asking what the weather
                                                     Add to basket to buy online – 17%                        is like may still be the most common uses of
                                                                                                              voice-enabled devices, but users are finding
        Digital subscriptions         44%                                                                     new functions, including searching for and
                                                                                                              buying products.
                                                                                                                 Amordeluso revealed that 42% of
        Smart home devices          41%                                                                       Amazon Echo users had added an item to a
                                                                                                              shopping list.
    0                 20                40                   60               80                  100            Google UK head of search Alessandra
                                             % respondents
                                                                                               Source: OC&C   Alari says: “We are beginning to see voice
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Chapter one: The potential of voice

become an everyday, accepted behaviour,              “Around 10% of UK households now                    be seen, such as clothes.
moving from an experimental tool and party        have a smart speaker device, and we think                 And voice technology will not be limited
trick to becoming more fully embedded in          voice activation is set to be one of the next big      to smart speakers.
how we live our lives.”                           retail shifts when it comes to technology,”               Amazon has opened up its voice frame-
   Consumers aren’t just searching for prod-      he says.                                               work and there are now more than 50 prod-
ucts via voice – they are also buying them.          OC&C estimates that $5bn (£4.4bn) will be           ucts – from cars to kitchen appliances – that
According to research by consultancy OC&C,        spent through voice commerce in the UK by              are capable of giving Alexa a voice.
16% of smart speaker users have bought            2022, representing 3% of all online spend.                Already car manufacturers, including
products via the device more than once.                                                                  Ford, BMW, Mini, Seat, Skoda and Toyota,
   Tesco Labs head of technology research         New behaviours emerge                                  are integrating Alexa into their vehicles.
Paul Wilkinson predicts that voice will have      Voice is already changing how people shop.                Vista Retail Support technical services
a big impact on retail.                           Tesco director of online business services             director James Pepper says this could enable
                                                  Rafael Orta told IGD Online and Digital                shoppers to order products in their car and
By 2021, there will                               Summit late last year: “What we’re seeing is
                                                  a more continuous basket construction.”
                                                                                                         have sat-nav systems instantly programmed
                                                                                                         with directions to the nearest location to
be more digital                                     Shopping by voice is in its infancy and the          collect from.

assistants than                                   bulk of orders are made by consumers who
                                                  know precisely what they want to buy.
                                                                                                            Barnes says: “Voice is going to be enor-
                                                                                                         mously disruptive and retailers are signifi-
people on the planet                                As a result, groceries and items such as
                                                  electronics and homewares are the most
                                                                                                         cantly underestimating how quickly it’s
                                                                                                         going to come.”
Estimate by                                       common purchases.
                                                    However, the next generation of Google
                                                                                                            Retailers need to understand how their
                                                                                                         customers will use voice technology on a
technology research                               and Amazon voice-enabled devices have                  day-to-day basis and determine how this
consultancy Ovum                                  in-built screens, which should open up
                                                  voice commerce across products that need to
                                                                                                         will impact interactions with their brand, or
                                                                                                         risk being left behind.

 Meet the voice assistants

 Name: Alexa                          Name: Google Assistant                   Name: Siri                               Name: Cortana
 Powered by: Amazon                   Powered by: Google                       Powered by: Apple                        Powered by: Microsoft
 Launched: 2014 for US Amazon         Launched: 2016                           Launched: 2011                           Launched: 2014
 Prime members, 2016 in UK            Compatible devices: All modern           Compatible devices: iPhone, Apple        Compatible devices: Microsoft
 Compatible devices: Echo and Echo    Android phones and Google Home           Watch, AirPods and HomePod               phones, Windows 10 PCs and
 Dot speakers, Echo Show (with        speakers (launched 2017)                 speaker (launched in February            Invoke speakers
 screen), Echo Look (with camera)     Key feature: Access to all of Google’s   2018)                                    Key feature: Integrated with
 and Echo Tap                         intelligence, and no need to teach       Key feature: Integrated with iOS (the    Windows
 Key feature: The Alexa devices can   it skills                                Apple operating software)
 hear you in noisy environments

 Name: Bixby                          Name: Duer                               Name: LingLong                          Name: AliGenie
 Powered by: Samsung                  Powered by: Chinese                      Powered by: Chinese ecommerce           Powered by: Alibaba
 Launched: 2017                       search engine giant                      giant JD.com                            Launched: 2017
 Compatible devices: Samsung          Baidu                                    Launched: 2016                          Compatible devices: TMall Genie,
 smartphones and Family Hub 2.0       Launched: 2017                           Compatible devices: DingDong A1,        Genie FireEye
 refrigerators                        Compatible devices: Little Fish          A2 and A3                               Key features: Voice/print
 Key feature: Understands             speakers (video and camera),             Key feature: English lessons for        recognition to ensure only
 natural language                     Sengled smart lamp speaker, PopIn        children                                authorised users
                                      Aladdin smart lamp, and Huawei                                                   can make orders
                                      and Xiaomi phones.                                                               using the device
                                      Key feature: Takes users’ previous
                                      searches and location into account
                                      when providing assistance
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Chapter two:
Voice tech and search
Consumers are increasingly using voice to search for products, companies
and services, with media analytics firm ComScore forecasting that half of
all searches will be carried out this way in just two years.

P
        eople tend to search differently via     to a wide range of queries.                          “If they think the results are biased and not
        voice than they do through text             These answer boxes also determine the          tailored to them, they’ll not continue to use
        search as, unsurprisingly, they use a    answers given to Google Home users.               the device,” he says.
        more conversational tone.                   Unlike the world of text search, businesses       “The platform businesses don’t want
   Alessandra Alari, head of search at Google    are unable to pay for voice search terms          that. They are far more interested in the data
UK, says: “One of the reasons people are         currently.                                        and trying to pair people up with the right
using voice search is that it offers a hands-       Google tried to introduce paid advertising     product.”
free way to get quick answers.                   into search results last year, but this was not      The focus for brands and retailers should
   “Almost 70% of queries to Google              warmly received.                                  therefore be SEO and making sure they have
Assistant are being asked in normal, natural        In the US, Google Home customers who           content that surfaces at the top of relevant
speech, as opposed to the keyword phrases        asked for a summary of the day complained         search results.
people generally type into a search box.         when Google Assistant told them about the            Alari says: “For brands, the key to opti-
   “Using a voice assistant feels much more      opening of Beauty and the Beast in cinemas.       mising for voice search is knowing what
like a human conversation.”                      The search giant swiftly removed the ad.          the questions are likely to be, and why your
                                                    However, reports surfaced earlier this         product is the answer.”
Topping Google search                            year that Amazon is in talks with consumer           Alan Boughen, president of paid search
All brands and retailers strive to land at the   goods giant P&G and cleaning products firm        EMEA at advertising giant Omnicom Media
top of search results. However, this is even     Clorox to promote their products on its Echo      Group, says pre-existing tools such as Google
more crucial for voice searches. Shoppers        devices.                                          Keyword Planner can help brands under-
do not want to listen to an endless list of         Accenture managing director of retail          stand what is being searched for.
responses to voice queries – they want just      technology consulting Rob Barnes believes            He recommends retailers use websites
one answer.                                      consumers will not tolerate paid-for search       such as AnswerThePublic.com to map out
                                                 results.                                          the types of questions consumers ask about
                                                                                                   products and brands.
                                                                                                      Retailers should then set about creating

                                                 The key to optimising                             content to answer those queries.
                                                                                                      This content needs to be structured in a
                                                 for voice search is                               way that Google rates highly. Boughen says
                                                                                                   the search engine prioritises web pages with
                                                 knowing what the                                  “structured data” and recommends that
                                                                                                   brands use websites such as Schema.org
An example of an ’answer box’ on a Google
                                                 questions are likely to                           to make it easier for webmasters to assess
search results page                              be, and why your                                  content.
                                                                                                      Jeremy Pounder, futures director at media
Google has been evolving to respond to
the growth of voice search and, for the past
                                                 product is the answer                             agency Mindshare, says a brand’s credibility
                                                                                                   in the area being searched is also taken into
couple of years, has provided ‘answer boxes’     Alessandra Alari, Google                          account by Google.
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Chapter two: Voice tech and search

   Reviews and social recommendations are
                                                  Amazon Choice selection criteria
important factors while determining cred-
ibility, so Pounder urges retailers to build      Product                         Customer experience             Supply chain
strong relationships with influencers in their
                                                  Average product rating: >4.5    Low return rate                 All products Prime eligible (i.e.
field.
                                                                                                                  fulfilled by Amazon)
How does Amazon do it?                            Average number of reviews:      Strong product guarantees       Max. 2-3 day delivery (no stack
Amazon’s digital assistant Alexa makes            846 (variable)                                                  limitation)
product recommendations based on relevant
                                                  “Best seller” ranking: >#8      Low proportion of negative      Perfect order rate (i.e. errors in
items in a customer’s order history or basket
                                                                                  customer experiences            orders delivered to Amazon) >99%
in the first instance.
                                                                                                                  across all products
                                                  Low basket abandonment          High customer response rate     High order punctuality rate
                                                  rate                            within 24 hours
                                                  Pre-fulfilment cancellation     Accurate product information    Low order delivery time
                                                  rate:
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Chapter three:
Voice tech, shopping
and engagement
Voice technology is not just impacting how we search – it’s
changing how we interact and shop with brands.

T
        he bulk of voice commerce currently
        takes place on Amazon.
                                                 developed skills to enable shoppers to buy
                                                 directly through them using Amazon Echo
                                                                                                 The best skills take
          Consultancy OC&C estimates that        devices.                                        away the friction of
        the online giant takes 90% of all
spend via voice.
                                                    These skills allow shoppers to place items
                                                 in their basket via voice command and create    doing a task
   The seamless nature in which users can
find products, add them to their Amazon
                                                 a continuous basket throughout the week.
                                                    Google UK head of search Alessandra
                                                                                                 Jeremy Pounder,
basket and pay has undoubtedly driven this       Alari says: “This changing behaviour gives      Mindshare
impressive market share.                         brands an opportunity to use voice search
   Some retailers have attempted to sell using   as their ‘always on’ connection, so that they
Amazon and Google’s voice ecosystems by          are constantly available to engage and assist
developing branded shopping experiences          consumers.”
on Echo and Home devices.                                                                        doing a task,” he explains.
   On Amazon’s Echo devices, skills are          What makes a good skill?                           Pounder uses the example of the Star-
the apps of the voice world. Echo users can      The really good branded skills have been        bucks skill in the US, which allows users to
enable or disable branded skills in the same     based around utility so far, according to       pre-order coffee from the in-built Amazon
way that they can install or uninstall apps.     Mindshare futures director Jeremy Pounder.      Echo in Ford cars for pick-up at its drive-
   Ocado, Tesco and Morrisons have               “The best skills take away the friction of      through locations.
                                                                                                    “That’s a great example of a specific
                                                                                                 moment, when buying via voice is better
                                                                                                 than any alternative,” says Pounder.
                                                                                                    Domino’s Pizza launched a skill in the UK
                                                                                                 late last year to allow its customers to order
                                                                                                 their favourite pizza using just six words:
                                                                                                 “Alexa, ask Domino’s to feed me.”
                                                                                                    Tom Ollerton, innovation director at
                                                                                                 Domino’s agency We Are Social, says
                                                                                                 the takeaway firm’s customers tend
                                                                                                 to order the same pizza to the same
                                                                                                 address, so the reordering skill makes this
                                                                                                 process even easier than tapping its app.
                                                                                                    Pounder also highlights Tesco’s presence
                                                                                                 on Amazon Echo and Google Home as an
                                                                                                 experience that makes life easier for users.
                                            Amazon’s Alexa is built into Ford cars, allowing        Shoppers can buy Tesco groceries on both
                                            users to pre-order a coffee from Starbucks           devices as a result of its collaboration with
                                                                                                 IFTTT, a platform that joins together shop-
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Chapter three: Voice tech, shopping and engagement

pers’ online accounts.
  Tesco Labs head of technology research
Paul Wilkinson says: “If the customer shops
with us regularly, we do our best to match
this command with the products they
normally choose, so their usual two pints of
semi-skimmed milk are added to their basket
– not just the first result that’s returned.”
  It is no surprise that grocery retailers like
Tesco have been the first to market in the UK
with branded skills.
  The transactions that are taking place via
voice right now tend to focus on reordering
and replenishing products, making super-
market shopping a good fit.
  Vista Retail Support technical services
director James Pepper says: “It’s really incon-
venient to shop online for grocery.
  “Building a shopping list as and when you
remember, then completing the transaction
once a week, really simplifies the process.”

 Brand building through skills                                                                           Skills and actions are
                                                                                                         not right for every
 Skills aren’t just about ecommerce; they can
 also offer an effective route for consumers to
                                                       Both include subtle references to Unilever
                                                    products.                                            brand as there are only
 engage with brands.
    Barnes says that, when developing skills,
                                                       Similarly, drinks manufacturer Pernod Ricard
                                                    launched the What Cocktail? Alexa skill to help
                                                                                                         a limited number that
 retailers need to focus on “meeting the everyday   users mix drinks at home, and washing powder         the shopper will use
 needs of their customers on this platform”.        brand Tide has a skill that tells users how to get
    For fashion retailers, this might be style      rid of 100 different stains.
 advice rather than product information, for           There is also an opportunity for brands to        right and will offer shoppers an in-built vast
 example.                                           entertain users through voice-enabled devices.       range, sold at competitive prices, with a
    FMCG giant Unilever has launched several           Last Christmas, John Lewis partnered with         completely seamless shopping experience.
 skills to engage with its consumers.               Google Home to release an interactive audio             Accenture managing director of retail
    Its Recipedia skill gives step-by-step          storybook for children based on Moz the              technology consulting Rob Barnes says that
 instructions on how to cook more than 650          Monster, the star of its Christmas campaign.         some retailers, particularly those operating
 meals, while its Cleanipedia skill shares             Children could use the Google Home speaker        in categories that are commoditised, should
 household tips.                                    to read aloud and ask questions about the story.     insert themselves into Amazon’s supply
                                                                                                         chain by selling on its marketplace, rather
                                                                                                         than investing in their own branded experi-
Skills shortage                                     Selling via Google Home                              ence.
An increasing number of brands and retailers        On Google, brands can create ‘actions’ that             However, retailers who sell more unique
are developing Alexa skills, with Amazon            allow Google Home users to get things done           product and have a distinct offer should
reporting a 428% increase in these year on          with specific brands.                                create their own skills and actions to give
year. However, the consumer uptake of skills           Unlike Amazon Echo skills, users do               customers a similar experience via voice that
is thought to have been limited so far.             not have to enable a branded experience or           they would get across other sales channels.
   According to a 2017 report by VoiceLabs,         request that Google Assistant uses it.
only 31% of Alexa skills have more than one            Instead, the assistant decides which is the
customer review, which suggests they are            best action to fulfil the user’s request – much
not being used regularly.                           like a traditional search engine – and then           Action points: what
   The fact that users need to enable these         asks if they want to use it.
skills and specifically ask Alexa to add goods         The fact that consumers do not have to             should you do now?
to to their Ocado or Tesco baskets makes this       explicitly search for this action, as they do on
a clunky process.                                   Amazon, can make interaction with brands              ●●Determine whether a branded shopping or
   Voice is about ease, and if Amazon is a          easier on Google’s voice platform.                    engagement experience is right for your brand
plausible place to buy products – which it                                                                ●●Assess what purpose a skill or action
is across a wide range of categories – users        Is a skill or action right for your                   would serve for your shoppers. Would it be
will not take the extra step of asking Alexa to     brand?                                                transactional or would it provide unique
purchase through a particular skill, unless         Skills and actions are not right for every            content?
there is already strong brand loyalty there.        brand as, just like apps in the mobile world,         ●●Decide which platform works for you.
   OC&C partner Will Hayllar says: “The risk,       there are only a limited number that the              Amazon may be more of a transactional
which is part of Amazon’s objective here,           shopper will use.                                     environment, but can you entice shoppers to
is making it more and more easy to shop                And right now one of the biggest players           take the extra step to download your skill?
through them.”                                      in voice, Amazon, is a retailer in its own
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Chapter four:
Voice tech and customer service
Smart home technology is spearheading consumer voice
interaction. However, experts believe people will soon feel
comfortable using this technology outside the home as well.

F
         or retail, the obvious next step is         Voice-activated products have already        Meanwhile, in Japan, Henn-na hotels use
         bringing voice assistance into stores.   been used to provide customer service by a   robots to check in guests.
            Rob Barnes, Accenture’s managing      number of hospitality brands globally.          Mindshare futures director Jeremy
         director of retail consulting tech-         In San Antonio, Texas, the JW Marriott    Pounder says fashion retailers could embed
nology, says this could be win-win for            resort uses Echo Dot in its hotel rooms      voice assistants into changing rooms. These
consumers and retailers.                          to inform guests about restaurants, room     could order products in different sizes and
   “The common complaint you hear from            service and directions.                      even offer style advice.
consumers is that they want to engage with                                                        There is also an opportunity for brands
staff in store,” he says.
   “Meanwhile, retailers say they want to
                                                  Voice-activated devices                      to link this customer-facing, voice-enabled
                                                                                               technology with back-end systems, such
take staff away from more mundane tasks.          could be linked to                           as real-time stock information, to further
This could be the solution.”
   “It’s hard to have highly knowledgeable        shopping trolleys or to                      enhance the experience.

experienced people across all stores in your
network. Voice could offer a new heightened
                                                  a voice-activated                            Navigating the store
                                                                                               Technology is already being used by retailers
customer experience by making it acces-           assistant on an app                          to help shoppers navigate stores.
sible to the customer in a way they would be                                                      Harrods makes use of interactive maps on
comfortable with.”                                Paul Wilkinson, Tesco                        its app to help shoppers find specific brands
                                                                                               and products at its Knightsbridge store.
                                                                                                  And Barnes says interactive voice
 Amazon’s Echo Dot can now be                                                                  response technology could solve simple
 found in some JW Marriott hotels                                                              queries, such as giving directions to specific
                                                                                               products.
                                                                                                  By using either voice-enabled devices or
                                                                                               shoppers’ own smartphones, retailers could
                                                                                               bring these directions to life and facilitate
                                                                                               conversation between users and virtual store
                                                                                               assistants.
                                                                                                  Tesco Labs head of research technology
                                                                                               Paul Wilkinson told delegates at Retail
                                                                                               Week’s Tech. event last year that there was “a
                                                                                               lot of opportunity” for the grocer to deploy
                                                                                               voice search tech in-store to allow shoppers
                                                                                               to locate items on their shopping lists faster.
                                                                                                  He said voice-activated devices could be
                                                                                               linked to shopping trolleys or to a voice-acti-
                                                                                               vated assistant on a retailer’s mobile app.
Finding your voice How voice technology will transform retail - "Where's my nearest - World Retail Congress
Chapter four: Voice tech and customer service

                                                           Voice technology
                                                                          IN NUMBERS
                                                     The rise of voice search               Smart speaker penetration
                                                        % voice search on Android, 2017                UK households
                                                        % total search on voice in 2020                 2017    2022
                                                                                                                    10%

                                                                                     20%
                                                                                     (US)

The Harrods app includes an interactive store
map to aid shoppers

                                                                     50%                                                    48%
                                                                     (global estimate)
Tech for colleagues
   And it’s not just shoppers that could                     WORLDWIDE                                     UK FOCUS
benefit from voice technology.
   Wilkinson says store colleagues could
use it to check information like stock levels,                       By                      2017                                   2022
delivery schedules and promotions in-store,                                               Voice assistant                   Voice commerce
as well as helping customers with specific
queries.
   When mobile devices such as iPads and
                                                              2021
                                                            there wil be more
                                                                                         brand preference                   predicted spend

                                                                                                                          £3.5bn
kiosks were first introduced into stores,                                                                                   will be spent via
some retailers found shoppers reluctant to
                                                            digital assistants                  80% Amazon                  voice commerce
                                                                                                    Echo
use them.                                                  installed in devices                                                in the UK...
   However, when staff used this technology
                                                             THAN PEOPLE                                                     ...amounting to

                                                                                                                                  3%
to assist shoppers instead, real value was
achieved.                                                   ON THE PLANET
   “We already have our colleague app                                                           20% Google
                                                                                                    Home                  of all online spend
Inform, which enables colleagues to scan
products and quickly receive information
about them, so voice could be part of making         Battle of the brands                Amazon’s dominance
that even more helpful,” says Wilkinson.
                                                     Estimated number of smart           The % of all voice commerce
                                                     speaker devices sold globally       spend that went to Amazon

 Action points: what                                                                                                      90%
 should you do now?
 ●●Identify the real benefits of introducing voice
 technology into store – avoid having tech for
 tech’s sake
                                                           33
                                                           million
                                                                            8
 ●●Explore whether voice devices could carry
 out more routine tasks to free up customer                               million
 service staff to focus on more complex issues
 ●●Identify ways that voice technology could
 make colleagues better informed                                                              Sources: Google, OC&C, RBC Capital Markets, ComScore, Ovum
Chapter five:
Voice tech, delivery
and distribution
Voice technology could also help boost productivity and
improve customer experience across delivery and distribution.

O
         ne of the objectives of Amazon Echo        Google Home to allow shoppers to do just         having to input a barcode or postcode.
         is to make shopping with Amazon            that.                                               Hermes senior digital imagineer Carl
         easier, and tracking parcels is a            On Amazon Echo, users have to enable the       Robinson says its customers are using this
         fundamental function of the device.        Hermes skill, but Google Home customers          functionality.
   By asking “Alexa, where’s my stuff?”             simply ask Google Assistant where their             “The experiences that we’ve put out have
shoppers can find out the status of their           Hermes delivery is and are updated with          gained more usage than we expected, and
Amazon order. Users can also set up notifica-       the location of all parcels in transit without   they’ve proven sticky enough to keep people
tions to be informed when their purchases                                                            coming back using them,” he says.
are sent out for delivery.
   Parcel tracking is one of shoppers’ most
                                                    It makes sense to use                               “We’re removing obstacles and making it
                                                                                                     as seamless as possible.”
desired delivery options – according to a           hearing rather than
                                                                                                     Warehouse uses
Retail Week survey last December, 40% of
shoppers said the ability to track parcels was      visual instructions as                           Productivity is under the spotlight in retail
the most important element of delivery.
   Parcel tracking on voice-enabled devices
                                                    eyes are looking for                             warehouses, and voice technology could
                                                                                                     enable employees to work more efficiently.
could save shoppers calling a contact centre        product or pallet                                   “Lots of warehouses are already using
or logging on to a web portal. It is a core func-                                                    voice to direct pickers where to find items,”
tion of Ocado’s Alexa skill.                        locations                                        says OC&C partner Will Hayllar.
   Courier Hermes has launched a parcel-
tracking service on both Amazon Echo and
                                                    Will Hayllar, OC&C                                  Workers use headsets and are given aural
                                                                                                     directions to product or pallet locations.
                                                                                                        “It makes sense to use hearing rather than
 The ring light on Alexa                                                                             visual instructions as eyes are looking for
 devices turns yellow                                                                                product,” says Hayllar.
 when there is a delivery                                                                               John Lewis has used voice picking for
 notification for the user                                                                           the past decade, and in 2015 implemented
                                                                                                     voice technology to improve the accuracy
                                                                                                     of loading onto vehicles at its distribution
                                                                                                     centres.
                                                                                                        The technology, provided by Voiteq, was
                                                                                                     introduced to prevent errors in the loading of
                                                                                                     goods to store, which it said at the time was
                                                                                                     “a reasonably frequent occurrence”.
                                                                                                        John Lewis distribution systems manager
                                                                                                     William Armitage said: “We can only put
                                                                                                     that down to the process of having to hold
                                                                                                     devices for scanning or interacting with
                                                                                                     screens and keyboards.
Chapter five: Voice tech, delivery and distribution

                                                                                                           integrated into the majority of modern
                                                                                                           smartphones, Robinson says there could be
                                                                                                           an opportunity to harness these devices in
                                                                                                           retail warehouses, rather than investing in
                                                                                                           hardware.
                                                                                                              However, he sounds a note of caution
                                                                                                           about bringing emerging technology such as
                                                                                                           voice recognition into workplaces.
                                                                                                              “When you force employees to use new
                                                                                                           technology, it generally doesn’t work,” he
                                                                                                           says.
                                                                                                              ”When consumer adoption of this tech-
                                                                                                           nology is higher and employees are using it
                                                                                                           already in their day-to-day lives, it opens up
                                                                                                           more uses in a distribution environment.”

                                                                                                            Action points: what
John Lewis has been using voice picking in their distribution centres for the last decade
                                                                                                            should you do now?
                                                                                                            ●●Look to bring parcel-tracking functionality
    “We wanted a solution that offered               hands-free.                                            to your businesses’ skills and actions on
partners the same productivity, increased              Tesco Labs head of technology research               voice-enabled devices. Tracking improves
accuracy and hands-free, eyes-free benefits          Paul Wilkinson says tech of this type could            customers’ delivery experience and doing this
of the voice-directed system we already              help its warehouse workers.                            via voice is quick and easy. It can also reduce
successfully use for picking.”                         “Voice could complement our picking                  call centre activity
   The technology translates on-screen               activity, enabling colleagues to confirm               ●●Assess the benefits of bringing voice
instructions into voice and then enters the          when a task is completed simply by saying              recognition systems into your warehouses.
user’s verbal response back to the screen.           so, making their experience even simpler,”             This can make picking, packing and loading
   This enables employees working within             he says.                                               safer and more accurate
the loading environment to be completely               With voice recognition technology

 Find out more…
 The digital revolution has ushered in the most      and their approach to the home.
 challenging era in the history of retail. Join us      The message is clear: the way ahead won’t be
 at Tech. – the most important two-day festival      easy, but significant opportunities wait for those
 of digital retailing – and enjoy the following      brands who lay the groundwork to optimise their
 sessions:                                           strategies for the future now.

 Mass-personalisation and in-home commerce:          Personalised shopping through v-commerce
 What next for marketing?                            Unlike innovations in the past, nowadays
 Voice-based interaction with digital services is    technological advance in one area will certainly
 fast overtaking screen-based interaction, leading   have transformative impacts in another area.
 brand owners and their agencies to a watershed         AI voice assistance is one of the hottest topics
 point in the history of marketing.                  in tech right now. Personalisation has made its
    With the ability to create new and compelling    way from a novel feature on a music streaming
 propositions informed by both consumers’            service, to becoming a key feature in the
 behavioural data (what they did, where they         shopping journey.
 did it and why) and contextual data (what time         Many retailers avidly integrate related
 of day did they do it, what was the weather         technology to make this possible both in-store
 like), marketers must adapt to the new rules of     and online. Its adoption started with high-value
 engagement, opportunities and challenges this       items such as electronics and fashion.
 heralds… and fast.
    David Coombs (Head of Strategic Services,        Panellists:
 Cheil UK) presents a snapshot of the future         ●●Toby Knight, Solutions Architecture, AWS
 of marketing in a world driven by mass-             ●●Paul Wilkinson, Head of Technology Research,
 personalisation and in-home commerce. He            Tesco Labs
 highlights some of the data challenges many         ●●Ravi Mattu, Editorial Director in Tech, Financial
 brand owners are still struggling to deal with      Times
 and talks about his experience with Samsung         Find out more: Tech.Retail-Week.com
Join the conversation…
What does the future hold for voice technology
 in retail? Tweet us @RetailWeek or leave a
       comment on our Facebook page.

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               Written by Gemma Goldfingle
         Produced by John Beaumont and Nathan May
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