Smart Speakers

Since their debut more than three years ago with the launch of
the Amazon Echo, smart speakers have often been seen as
more novelty than valuable resource. This reality is changing,
however, as companies partner with the devices to make
consumers’ lives more convenient. Increasingly, this is
becoming the case in the grocery industry: Consumers who
do their grocery shopping online are more likely to see the value
in these devices, according to new research from London-based
technology company GlobalWebIndex.

Some 56 percent of online grocery shoppers worldwide said
that they either currently use a voice-controlled smart speaker
or plan to purchase one within the next six months, the research
shows. Although the research involved consumers across the globe,
results were consistent across regions.

“Voice assistants took off in 2017, and retailer investment in
this technology will only continue to grow,” says Dan Farmer, VP
of retail solutions with Toronto-based ecommerce platform provider
Unata, which was recently acquired by third-party grocery delivery
service Instacart.

From startups to industry leaders, technology providers in the
area of conversational commerce vary in size and capabilities.
Ken Fenyo, head of consumer markets for New York-based
consulting firm McKinsey Fast Growth, who was previously VP
of loyalty at the Cincinnati-based Kroger Co., recommends that
grocers experiment with a range of technology partners to see
which solutions and partners most appeal to their shoppers and
fit their operating model.

“As with grocery in general, it will be critical for retailers to
leverage their data and ability to personalize the shopping
experience to capture share of wallet,” he says, also adding
that retailers also need to “find partners to help them tap
into the various text-messaging platforms to ensure they
reach every one of their shoppers when they want to order.”

In structuring these relationships, grocers must be sure they
don’t get disintermediated along the way, by retaining control
of their customer data as well as key consumer touchpoints
such as delivery and pickup or product selection. One way to
do this is to partner with multiple tech innovators to ensure
broad coverage and test emerging capabilities.