Will Voice Commerce Continue To Gain Traction?

When it comes to shopping, the role of voice commerce has been slowly gaining traction. While the full potential of conversational AI in-home voice assistants remains to be unlocked, their utility in enhancing the retail customer experience is evident. The convenience of ordering products through voice commands, with or without a visual interface, presents a myriad of possibilities.

Voice commerce allows users to make purchases using spoken instructions, bypassing the need for traditional and manual browsing. A straightforward command like “Hey Google, find me a wireless vacuum cleaner” can kick-start the shopping journey. Once the user is given options, they can confirm a purchase and their order will be processed.

Convenience is key in online shopping, and voice commerce, if done properly, will perpetuate this claim. Embracing voice commerce can help retailers differentiate themselves, attracting organic traffic from mobile users and smart speaker shoppers.

This seemingly simple interaction is backed by a sophisticated system with two key elements: the hardware and the software.

The hardware, commonly a smartphone or intelligent speaker, serves as the platform for voice interactions, featuring virtual helpers such as Alexa, Siri, or Google Assistant. Meanwhile, specifically designed software, linked with online shopping platforms, deciphers these instructions and manages the buying process for the consumer.

A prime illustration of this burgeoning technology is Walmart’s Voice ordering system. Through smart speakers, customers can add products to their virtual carts, completing their purchases via voice. Walmart’s workforce then ensures these items are ready for convenient pickup.

The system utilizes prior purchase data for accuracy, and when unavailable, it recommends other items based on local price and availability. In 2021, Walmart implemented deep learning AI, and it increased accepted substitutions by over 95%, using real-time shopper data and customer feedback to refine future recommendations.

Walmart then expanded this into “Conversational Commerce,” a term coined by Chris Messina in 2016, which involves e-commerce conducted through conversations between people, brands, services, and bots. This includes live chat support, chatbots, and voice assistants, powered by technologies like speech recognition, natural language processing, and AI.

Additionally, Walmart employs AI-driven conversational agents for personalized customer care across various platforms. Another tool, Ask Sam, introduced in 2019, aids associates in store operations, including product search and price checks.

Another area where voice commerce is showing promise is within consumers’ vehicles. In an interview with PYMNTS, Drew Edwards, CEO of Ingo Money, pointed out that platforms like Apple CarPlay and Google Android Auto have integrated voice commands into cars’ digital interfaces. These voice-activated systems enable consumers to engage in dialogues, making it easier to consider and transact across various interactions and experiences while driving.

“It could get so much better if it was tied into my car and [saying] hey Drew, you’re down to an eighth of a tank of gas and there’s a QuikTrip up here on the right which already has your payment credentials,” Edwards said. “It’s where the connected car comes in because you can’t use your hands, and you’re interacting with this artificial intelligence. All the way through to paying for that experience, it just happens without you ever touching a keyboard or putting your credentials in.”

Voice Commerce: A Promising Future in Retail or Just a Hype?

Voice commerce might seem like a promising new frontier for retail, but despite its potential, the technology is still finding its footing.

According to PYMNTS Intelligence’s study titled “Tracking the Digital Payments Takeover: Catching the Coming eCommerce Wave,” based on a survey of nearly 2,700 U.S. consumers, the channels consumers use to buy retail items vary significantly, and only 2% use voice-activated devices or other channels for their shopping needs.

Why is voice commerce lagging behind other channels? Several factors may be contributing to its slow adoption:

1. Limited functionality and compatibility: Voice-activated devices may not be fully compatible with all e-commerce platforms, making it inconvenient for consumers to use them for shopping.
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 and challenging to use.
3. User experience: The current voice-activated purchasing experiences may not be as seamless or user-friendly as other methods, leading consumers to prefer more established channels.

Voice commerce presents numerous challenges for businesses despite its advantages. One major hurdle is the lack of trust among users concerned about data privacy and unauthorized purchases, especially when children are involved. To address this, companies should ensure GDPR compliance and educate customers about their data handling practices. Additionally, integrating voice biometrics can help verify user identity, reducing the risk of unwanted purchases.

Another challenge lies in accurately recognizing and interpreting human speech, which can lead to user dissatisfaction. Implementing advanced natural language processing technologies, such as self-learning NLP models and reinforcement learning, can enhance voice commerce accuracy. Voice-to-text is still far from perfect, and English is currently the dominant language in the voice recognition realm. Lastly, the limited support from financial institutions for voice-driven transactions restricts payment options, potentially limiting the appeal of voice commerce to potential users.

With both pros and cons, voice commerce has the ability to add another digital layer to the ever-evolving retail landscape.