Voice commerce (VC) is gaining traction with shoppers. While the full potential of AI voice assistants remains to be seen, the convenience of ordering products with voice commands opens up a wide range of possibilities.
VC allows users to make purchases by spoken instructions, rather than manual browsing. If done correctly, VC could help retailers differentiate themselves in attracting traffic from mobile users and smart speaker shoppers.
VC is backed by sophisticated hardware/software. Hardware, such as smartphone or intelligent speaker, is the platform for voice interactions with virtual helpers such as Alexa and Siri. Software, linked with online shopping platforms, deciphers instructions and manages the buying process for consumers.
An example is Walmart’s Voice ordering system. With smart speakers, customers add products to virtual carts and complete purchases via voice. The system utilizes prior purchase data for accuracy and can recommend other items based on price/availability. In 2021, Walmart implemented deep learning AI, using real-time shopper data and customer feedback to refine future recommendations.
Walmart then expanded into Conversational Commerce, which involves eCommerce conducted via conversations between people, brands, services and bots. This includes live chat support, chatbots and voice assistants, powered by speech recognition, natural language processing and AI. Walmart also employs AI-driven conversational agents for personalized customer care across multiple platforms.
VC has potential, but the technology is slow to takeoff. Based on a study by PYMNTS Intelligence, consumers use multiple shopping channels but only 2% use voice activated devices or other voice-related channels for their shopping needs.
Several factors may contribute to VC’s slow adoption: (1) Limited Functionality and Compatibility – voice-activated devices may not be fully compatible with all eCommerce platforms (2) Lack of Awareness and Familiarity – some consumers may not be aware of the option to make purchases via voice-activated devices or may find them unfamiliar/challenging to use and (3) User Experience – the current voice-activated shopping experience may not be as seamless/user friendly as other methods.
VC presents additional challenges. One is lack of trust among users concerned about data privacy and unauthorized purchases. Another is in accurately recognizing/interpreting human speech. A third is limited support from financial institutions for voice-driven transactions which restricts payment options.
MOSIMTEC specializes in leveraging all types of technology to help companies improve performance. Whether it be simulation modeling, digital twins, machine learning or VC, MOSIMTEC’s data scientists/industrial engineers help our clients achieve breakthrough gains they need to out-perform competitors. MOSIMTEC can help you future-proof your business.
Keywords: Voice commerce, AI voice assistants, smartphone, intelligent speaker, smart speaker, Alexa, Siri, Walmart, Voice ordering system, deep learning AI, Conversational Commerce, chat support, chatbots, speech recognition, natural language processing, PYMNTS Intelligence