![]() ![]() ![]() First, they allowed other hardware manufactures to use Alexa in their own products via skills. The Echo speaker line was really an introduction to Alexa, a new way to engage with Amazon.Īmazon began expanding Alexa's capabilities in two ways. It opened the door for Amazon to not only sell through voice, but create a whole new category of products to lead in. In Amazon's case, the Echo was a beachhead. Once you establish a channel, what should you do next? Your omnichannel strategy needs to extend beyond first contact. Additionally, it acts as another channel for a number of Amazon owned services, including Audible and Amazon Music. Today, consumers can easily ask Alexa to purchase any number of products, from toilet paper to headphones. Today, they still possess an overwhelming lead in market share, capturing more than 2.5x that of Google Nest and nearly 10x that of Apple's HomePod.Īmazon's smart speakers changed the competitive landscape, giving Amazon direct access to customers in a way similar to mobile devices. Their solution? Create another device customers would use regularly that bypasses mobile.Īmazon invented the "smart speaker" market in 2015 with the Echo, coupled with their new personal assistant technology, Alexa. ![]() It represented a major threat - even to Amazon, to not have direct access to customers. Unfortunately, Android and iOS had already locked them out of this market, and to this day that effort remains one of the worst performances in Amazon's history. However, that number is predicted to balloon to $40 billion in sales by 2020.īefore the Echo, Amazon tried to create a more direct relationship with customers with their Fire Phone. In February of 2018, OC&C Strategy reported that roughly $2 billion in sales were made over voice. And Statista shows that the number of digital voice assistants are expected to grow to 8.4 billion by 2024.Īnd, voice is increasingly being used to complete purchases. ComScore predicts that 50% of all Google searches will be conducted by voice by 2022. Voice is solidifying itself as an important channel for commerce. ![]()
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