Connected commerce - Welcome to the roaring 20's_Amazon Pay
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Connected commerce - Welcome to the roaring 20's_Amazon Pay
- 1. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved Connected Commerce – welcome to the roaring 20s Patrick Gauthier VP, Amazon Pay Connected Commerce – welcome to the roaring 20’s Patrick Gauthier VP, Amazon Pay
- 2. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved
- 3. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved Patrick Gauthier VP,Amazon Pay 2
- 4. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 3 Connectivity is pervasive and diversified
- 5. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 4 Voices are getting louder
- 6. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 5 Voice is about more than just tracking orders
- 7. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 6 The need for speed
- 8. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 7 Voice enriches the journey
- 9. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 8 Voice is not just for shopping
- 10. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 9 Prepare for the connected consumer
- 11. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 10 Cross-channel shopping journeys are the norm, not the exception
- 12. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 11 Seamless experiences across channels are expected
- 13. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 12 Offering seamless experiences can be a differentiator
- 14. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 13 Consumers are open to sharing personal information to enable a better experience
- 15. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 14 Trust is a necessity, not an option
- 16. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 15 Trust is a necessity, not an option
- 17. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 16 Signals to increase trust
- 18. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved Consumers love the convenience, speed, and context of voice Consumers are open to incorporating voice into their shopping journeys The time is now if you want to stay ahead of consumer expectations 17 The last word 01 02 03
- 19. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved 18 Methodology The data is the result of a survey of 10,297 consumers in the United States, United Kingdom, Germany, France, Italy, Spain, Japan, and India. Amazon Pay did not know the identity of the respondents and the respondents did not know Amazon Pay was the research sponsor.
- 20. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved Want more? 19 Download the eBook
- 21. Amazon Confidential, ©2019, Amazon.com or its affiliates. All rights reserved
Editor's Notes
- On August 11, 1994, history was made. Very few people noticed it at the time, but the retail landscape would never be the same. It was on that date that the first digitally secure internet purchase was made, when a man in Philadelphia used his credit card to buy the Sting CD “Ten Summoners Tales” for $12.48… plus shipping. The next day The New York Times explained the concept to readers, writing, “[Users] can browse a service of the Internet called the World Wide Web, where companies can post the electronic equivalent of a glossy color brochure with supporting sales or marketing documents.” 26 years later, quite a bit has changed. I’m curious… has anyone here purchased a compact disk in the last year? The last five years? Of course, it’s not just CDs… the internet has become a ubiquitous presence that requires little explanation. Connectivity no longer requires listening to the shriek of a modem and the interminable wait for pages to load. The web is now ambient, all around us, and capable of far more than just empowering the purchase of a Sting CD. And that change is having profound impacts on retail. https://www.nytimes.com/1994/08/12/business/attention-shoppers-internet-is-open.html
- Cloud-based voice services represent the next era of commerce after physical stores, ecommerce, and m-commerce. Interestingly, this next-generation commerce channel also takes consumers back to a simpler time, when all they had to do was ask for the products and services they needed. No typing or swiping, just good old-fashioned conversation, with one significant difference – consumers are doing the talking. According to Amazon Pay research, 44% percent of consumers are likely to use voice services in at least some part of their shopping journey in the next three years. Within the shopping journey, approximately one in three consumers are likely to use voice to purchase products or services in the next three years. Just as the internet and encryption technology changed retail 25 years ago, just as mobile transformed shopping 10 years ago, at Amazon Pay believe we’re in the midst of a third transformative shift in the retail landscape, one that’s powered by artificial intelligence and voice.
- For today, and tomorrow’s consumers, voice is already a lot more than simply asking about the weather from their digital assistant or tracking an order. Voice is going to touch every phase of a shopper’s journey, from discovery to research to purchase and post-purchase. Our research has shown that 43% of consumers are already interested in using voice services for both product searches and delivery notifications. But they also intend to use voice for far more complex interactions, with 26% indicating they will use voice for banking and paying bills, 22% expressed sending and receiving money from friends, and 19% expected to donate to a charity.
- Empowered with a variety of tools to help them save time and shop efficiently, today’s consumers are increasingly conscious of being “time-poor” – unwilling to deal with unnecessary obstacles in order to make a purchase. A 2019 Euromonitor survey into whether respondents would be willing to spend money to save time reveals that almost 50% of 30 to 44-year-olds answered “Strongly agree or agree”. Speed and efficiency are two of voice’s superpowers – the top two drivers of voice commerce are ease-of-use and speed. Consider that we typically speak twice as fast as we type. Through this speed, voice lets consumers get more by doing less. And because it’s a completely natural act, there’s virtually no learning curve for customers new to the experience. First time customers can interact with your brand as if they’re having a conversation, not searching through the FAQ pages on your site. Additionally, almost one in three consumers likes the in-context / in-the-moment aspect of voice, which allows them to move quickly from the ‘desire’ and ‘think’ phase to the ‘purchase’ phase. As you consider voice strategies, focus on events in the life of a consumer that could trigger them to pursue a shopping journey, for example asking consumers if they want to order gifts for their family before Christmas, or if they want to order movie tickets on a Friday night. Top 10 Consumer Trends 2019, Euromonitor
- But consumers are also ready to use voice in their shopping journey for any number of categories. Whether it’s 57% interested in using voice to book a hotel room or 55% interested in buying event tickets, voice is an increasingly important part of the shopping journey.
- That said, voice promises a lot more than shopping. As consumer trust in voice increases, we’re going to see voice services expand into other activities, such as financial management. Already 26% of consumers report that, in the next three years, they’re somewhat or very likely to use voice services for paying bills and banking. 22% are interested in sending and receiving money from individuals with voice, and 19% in donating to charity through voice. And that propensity almost doubles among those who already own smart speakers.
- Today, consumers might complete their entire shopping journey in any one channel, or they could use multiple channels within a single shopping journey – exploring a site on their mobile device, starting the checkout on a website, and completing their purchase using Alexa. This shift towards multi-channel shopping is device, category, and channel agnostic; it doesn’t matter if consumers are buying groceries or books or event tickets.
- The channel surfing connected consumer isn’t speculation – they’re already here. 42% of consumers are likely to be involved in a shopping journey that spans multiple channels in the next three years. Today, 39% are comfortable with starting their journey in one channel and ending it in another.
- The connected consumer expects a business to be present wherever they are – whether that’s a website or virtual reality experience. About half of consumers will recommend a brand if it offers a seamless cross-channel experience and one-fourth are willing to share their personal information if a brand uses it to offer a continuous experience across channels.
- But here’s the rub – only 52% of global consumers are satisfied with the ability of companies today to deliver cross-channel experiences. Now keep in mind that seven in 10 consumers will switch from a seller if it does not offer a good customer experience. Fifty-nine percent will not only switch but also be vocal, as they will share their unpleasant experience with friends and family. You can see that the retailer who provides connected consumers with the seamless experiences they expect will have a significant advantage in reaching the next generation of shopper.
- To attract consumers to a voice channel, or any channel, trust, and the security of personal information are the most important criteria. The biggest measure that will boost confidence in a business is if it guarantees that it will not share consumer information without permission. Seeking consent to use consumer information; a strong privacy policy; transparency about how consumer information is being used; and permitting consumers to choose the information that is captured/shared round out the top five.
- Consider that 85% of consumers rate trust and security to be somewhat or very important when shopping in a channel – establishing trust is not optional. And consumers will reward that trust – 66% will purchase more from the same brand if it keeps their personal information safe.
- So how can you convey a sense of trust and security to new shoppers who might be unfamiliar with your brand? Number one – offering the option to use well-known digital wallets such as PayPal or Amazon Pay for payment. Quality of the website, online customer reviews, third-party trust symbols, and family and friend recommendations round out the top five.
- Consumers love the convenience, speed, and context that voice offers. With voice being integrated into smart speakers, mobile phones, smart devices, cars, wearables, and more, their ability to use voice in the shopping journey has now become pervasive. And consumers are ready to incorporate voice. That in-the-moment aspect of voice allows consumers to move quickly from the desire and think phases to the purchase phase, with little or no friction. Businesses, no matter the industry, must prepare for this next level of consumer expectation. Just as they had to develop a web strategy in the 90’s and a mobile strategy in ‘00s, businesses are going to need a voice strategy considering the potential adoption highlighted in this report. However, in the pursuit of convenience, they should not forget that loyalty rests on the pillar of consumer trust. The time is now if you want to stay ahead of consumer expectations.
- Wrapping up, I’d like to share with you a look at the methodology we used in our research findings. The data is the result of a survey of 10,297 consumers in the United States, United Kingdom, Germany, France, Italy, Spain, Japan, and India. Amazon Pay did not know the identity of the respondents and the respondents did not know Amazon Pay was the research sponsor.