Voice commerce: the next frontier in retail

Just think; you are in the kitchen and are working on a recipe, and you simply say, ‘hello assistant, kindly add ten packets of milk to my cart,’ and it is done for you. Or, you are getting back from work, and you ask the assistant to reorder your favourite food – that’s what voice commerce is all about. Digital shopping has come a long way from when we browsed on desktops to now, where we can shop hands-free.

According to Datam Intelligence, the global voice commerce market had grown to US$108.33 billion in 2024 and was projected to continue growing at a CAGR of 27.28% until 2031.

In May 2023, Amazon confirmed it had sold over 500 million Alexas since the device was launched about a decade ago. So, with more individuals turning to these devices, what does the future hold for conversational commerce?

The power of customer engagement

Customer engagement has always been the heartbeat of online shopping. For instance, in the casino industry, providers have been evolving to include online platforms where players can participate in games from any place.

And, if you have been keeping a close watch on this industry, you must have noticed games like live casino games where players can participate with live dealers in real-time from any place. The whole idea is usually bettering customer engagement.

By using voice data and analytics, businesses can extract meaningful insights into user preferences and, thus, provide more personalised experiences. Especially now that over 91% of customers will likely shop at a business that customises, tailoring your experiences to fit customer needs can be a great way to differentiate yourself from the crowded market.

Referencing to the example we gave - the casino industry - game providers can integrate AI voice assistants to cater to individual preferences. This could be in the form of adjusting game music to their preferences, recommending games or just conversing naturally.

More and more online businesses are also likely to incorporate this technology into their payment methods as it eliminates the need to enter your details manually; you only need to give a voice command.

Plus, using voice commands to pay can be quite fast compared to traditional methods of payment, and if you have a disability, this technology can make online shopping more accessible. On top of this, your voice can be used as a biometric for security authentication, strengthening your security.

Why are more people turning to it, and what will the future be like?

Just recently, in mid-2024, a Data Intelligence report showed that North America dominated the voice commerce market while Asia-Pacific businesses welcomed this technology significantly. As if that is not enough,

Bazaarvoice added that of all the Google searches, voice searches accounted for 20%. In this report that was published in July 2023, 62% of smart speaker users confirmed that they would purchase their speakers in the succeeding month.

Among the many reasons why this industry’s global market share is increasing is that voice assistants have been widely accepted among all age groups.

Most smartphones will have this technology pre-installed, which makes it more accessible to a larger audience of users. In most cases, users will find it valuable as it allows them to conveniently play music, access information and control smart home devices.

Conversation commerce best strategies

Voice commerce uses artificial intelligence, natural language processing (NLP) and other machine learning algorithms to interpret user queries accurately.

And good enough, the algorithms are such that they can continuously learn how users interact. NLP, for instance, can decode nuances of language such as sentiment and content and help virtual assistants engage users more meaningfully.

And since most of these voice assistants are directly linked to search engines, you want to ensure that the products you sell have relevant keywords that are more likely to feature in voice searches. You may want to consider using long-tail or full-sentence keywords mostly.

If voice assistants can easily understand your content, and if you provide the necessary information that customers are looking for, then you can ensure that customers have a great experience.

You can also enhance the customer experience by allowing them to find support through voice-assisted chatbots. And with all this in place, you also want to ensure you have a way to measure your voice commerce results.

These metrics could include but are not limited to the number of searches, purchases and requests. Such information can help you determine whether or not your voice commerce efforts are helping you meet your company goals.

It’s without a shadow of a doubt that voice commerce has a bright future. Offering a more convenient way to shop, this technology will definitely affect our purchase behaviours in the coming days.

On top of that, rapid technological advancements in different regions like North America will continue to offer a conducive environment for the further spread of technology.