![“Voice is the new operating
system. Brands are disadvantaged
because there is no way for them to
show the investments they’ve made
[in the] online [world].Brands will not
matter at all because of voice
[searches].”
Scott Galloway
Professor NYU. Founder L2.](https://image.slidesharecdn.com/voiceexperiencebyjohnbatistich-180830080622/85/AI-Assistant-Enabled-Voice-Experiences-38-320.jpg)
AI Assistant Enabled Voice Experiences
- 1. Finding Your Voice Developing a Voice Experience for Your Brand/Business ADMA Global 31 August 2018 @johnbatistich
- 2. 1. Technologies Converging 2. AI Platforms 3. What and How 4. Behaviours of Early Adopters 5. Potential for Voice Commerce 6. Use Cases 7. Marketing Implications 8. So What? Nine Predictions 9. Now What? Nine Actions Agenda
- 3. Voice and gestures are our most natural communication interface.
- 4. Spoken Language 100K Years Print 575 Years Text to Speech 80 Years AI Assistants 6 Years Speech Recognition 50 Years Smart Phone 11 Years Source: Brad Abrams and Guillaume Laforge Google Cloud Next 17 Interactive Voice 25 Years Writing 5K Years Typing 150 Years Word Processor 40 Years Chat Bots 8 Years Internet 30 Years Dictation Software 20 Years Computers 70 Years History of Communication Technologies
- 5. “More efficient and often more convenient than typing, voice-based interfaces are ramping quickly and creating a new paradigm for human-computer interaction” Mary Meeker KPCB 2018
- 6. Advances in speech recognition, language processing and machine learning are converging to enable voice user interfaces. We are transitioning from touch to voice and it has significant implications for marketing.
- 9. The largest and most disruptive companies on the planet are investing in AI in a voice race.
- 10. Market Capitalisation $1.06T $943B $862B $846B $446B $335B HyperGiants Scaling AI Platforms
- 12. “Our 'North Star vision' with Alexa is to recreate the Star Trek computer on the Enterprise, which could accurately answer just about any question you asked it. Alexa is primarily about identifying tasks in the household that would be improved by voice. (For shopping) Alexa is good for reordering consumables, where you don’t have to make a lot of choices.”
- 18. Alliances Being Formed + Alexa and Cortana will be able to understand each other + OK Google, reorder from Walmart OK Google, ask eBay to find me… +
- 19. Apple Siri iPhone 4s November 2011 Microsoft Cortana Windows 10 Desktop OS November 2015 Google Assistant Pixel Smartphone October 2016 AU AI Assistant Releases Apple Homepod December 2017 Amazon Echo February 2018 Microsoft Cortana Smartphone App March 2017 Google Assistant Home July 2017 Google Assistant App August 2017 Samsung Bixby Samsung Galaxy S8 August 2017
- 20. The AI Platform ecosystems are scaling
- 21. Source: VB Profiles. Designed by Dan Miller, Derek Top & Nicolas De Kouchkovsky Sept 2017 AI Assistant Ecosystem
- 23. Accuracy Improve algorithms to better please consumers and anticipating needs Source: Adapted from Niraj Dawar and Neil Bendle. Marketing in the Age of Alexa. HBR May-June 2018 AI Platforms Will Need to Build Trust Alignment Manage conflict of interest balancing customer trust and commercial opportunities Privacy Giving up personal information for hyper convenience creates exposure
- 24. There are great expectations for rapid adoption
- 25. Unit Purchases Accelerating to +56M in 2018 Source: Canalys Estimates & Forecasts Smart Speaker Analysis December 2017 7 33 56 2016 2017 2018E Unit Purchases (Millions)
- 26. US Household Penetration to 75% Source: Gartner Edison Research 2017 7% 75% 2017 2020 US Households with AI Assistant (%)
- 27. 30% of Searches Without a Screen Source: Gartner 10% 30% Q1 2018 2020 Non Screen Searches (%)
- 28. $1.80 $40 $5 2017 2022 Voice Enabled Sales US & UK to $45B Source: OC&C 2018 Sales Made Through AI Assistants (US$ Billions)
- 29. AU Adoption to Accelerate to 3M by 2022 Australian Households (Millions) Source: Telsyte 0.5 3.0 Q1 2018 2020
- 30. How does VX work?
- 31. Fallback The purpose of your conversation The actual question we ask The answers we receive to our expressed intents The things we are talking about The responses we receive when our intents are not understood. Answer updates coming. Skill Intent Entities Responses A New Marketing Language Wake Activate your AI Assistant with a Wake Word
- 33. Skills Enable Responses = Utility = Frequency Alexa Skills Available 130 6068 25000 35000 45000 2015 2016 Oct-17 Apr-18 Aug-18 Source: Company Reports. Business Insider. Voicebot Consumer Adoption Report January 2018 25784 8982 3118 Skills Available by Market (Jan 2018)
- 34. “As speech recognition accuracy goes from say, 95% to 99%, all of us will go from barely using it today to using it all the time. 99% is a game changer” Andrew Ng Former Chief Scientist Baidu
- 35. How AI enabled Voice Assistants create value?
- 36. Brand Provides Platform Listing and promotional fees Product information Innovations tailored to consumers’ needs Knowledge about product category Platform Provides Users Customised recommendations Automated routine purchases Convenience and savings Reduced complexity Continual scanning for better ideas Users Provides Platform Payment for goods Information on product, preferences, purchases and use Information on price sensitivity, risk tolerance, privacy expectations Loyalty in exchange for good recommendations How AI enabled Voice Assistants create Value? AI Platform UsersBrands Platform Provides Brand Virtual shelf space A single channel for marketing, sales and service Data on consumer preferences, purchases and media exposure Payment for goods sold Product fulfilment A trust halo
- 37. AI Platforms Virtuous Cycle for Users Use Starts to helps the user run their life and home Navigates Complexity. Provides Convenience Learns user criteria and trade offs Delivers higher utility Increase frequency and type of use Better anticipates needs High levels of loyalty Captures more share of spend taking a margin & earning relevant voice search media revenue Purchases Assistant. Installs. Builds Profile
- 38. “Voice is the new operating system. Brands are disadvantaged because there is no way for them to show the investments they’ve made [in the] online [world].Brands will not matter at all because of voice [searches].” Scott Galloway Professor NYU. Founder L2.
- 39. What can we learn from early adopters?
- 40. Why: In-Home Use Frequency Source: Voicebot Consumer Adoption Report January 2018 26% 34% 35% 38% 41% 41% 41% 47% 50% 52% 58% 66% 69% 71% 85% 90% 91% 12% 18% 20% 30% 24% 23% 26% 30% 27% 31% 39% 48% 48% 52% 69% 76% 73% 2% 8% 6% 21% 10% 10% 8% 15% 5% 11% 15% 25% 26% 24% 41% 42% 33% Make a Purchase Message Someone Access Calendar Control smart home device Listen to Podcast Call Someone Check Traffic Use Skill or App Find Recipe Play Game Answer Trivia Listen to News Set an Alarm Listen to Radio Set a Timer Check Weather Listen to Streamed Music Ask a Question Ever Tried Monthly Daily
- 41. Voice Use Cases Using Mobile In-Store 17.6% 20.8% 25.5% 29.5% 31.1% Source: Voicebot Voice Shopping Consumer Adoption Report May 2018 Locate a product Learn about discounts or deals Compare products Get help Self checkout
- 42. Where: Household Locations Source: Voicebot Consumer Adoption Report January 2018 46% 41% 37% 11% 6% 6% 5% 3% Living Room Kitchen Bedroom Home Office Bathroom Garage Dining Room Work Office
- 43. Frequency of Use Source: Voicebot Consumer Adoption Report January 2018 12.7% 23.2% 28.6% 21.4% 12.7% Never/Rarely Monthly 1-2 Times Per Day 3-5 Times Per Day +6 Times Per Day
- 44. Source: Voicebot Consumer Adoption Report January 2018 Why Some Consumers Have Not Purchased Not Interested, 38% Smartphone Delivers, 21% Privacy Concerns, 16% Plan to Buy, 12% Too Expensive, 9% Other, 4%
- 45. What: US User Market Shares Source: eMarketer April 2018 Amazon, 60.8% Google, 32.9% Other, 14.0% Amazon, 66.6% Google, 29.5% Other, 8.3% 2018E 2020E
- 46. What: Global Market Shares Source: Canalys Google, 36.2% Amazon, 27.7% Others, 17.3% Alibaba, 11.8% Xiaomi, 7.0% Q1 2018
- 47. Could voice enable commerce?
- 48. Voice Payment Adoption Source: BI Intelligence 8% 10% 14% 19% 24% 31% 2017 2018E 2019E 2020E 2021E 2022E
- 49. Voice Commerce Likes & Dislikes 19% 21% 27%It’s hands free I can multi-task It’s faster to get results Likes 21% 23% 32% Dislikes Not comfortable Don’t trust payment There is no screen Source: Voicebot Consumer Adoption Report January 2018
- 50. Voice Commerce Post Purchase Actions 24% 36% 39% 39% 80%Satisfied with voice shopping experience Shopped again with same retailer Shared positive experiences with friends More favourable to retailer Spent more money Source: PWC 2018
- 51. Use Cases
- 52. “Alexa open Tide” “Alexa, ask Tide how do I remove red wine stains” “Alexa, ask Tide how do I remove coffee stains” “Alexa, ask Tide to send the instructions to me via text message” “Alexa, buy some Tide”
- 53. “Alexa open Starbucks” “Alexa, ask Starbucks to order my regular coffee”
- 54. “Alexa call the office” “Alexa keep my maximum speed at 60km an hour” “Alexa direct me to…” “Alexa play the radio…” “Alexa order me a coffee from my local Muffin Break”
- 55. “Alexa, order room service. I would like…” “Alexa, turn on the lights” “Alexa, set alarm for…” “Alexa, notify housekeeping I have…” “Alexa, ask for hotel information” “Alexa, call the front desk” “Alexa, play music”
- 56. “Alexa, ask Flight Centre…” “...for the cheapest flight deal to Bali.” “...for the latest business class deals to London.” “...for a flight to Sydney with Virgin Australia.” “...find me deals to Singapore.”
- 57. "Alexa, ask Melbourne Transport...” When is the next train from Balaclava to Flinders Street When is the next train from Balaclava Train departing after six thirty in the afternoon Train departing tomorrow Train departing tomorrow after eight thirty Train departing on Sunday Train departing next Monday What are the facilities for Flinders Street station”
- 58. “Alexa, ask Uber for a ride” "Alexa, ask Uber to order an Uber Black.”
- 59. Flight schedule "Alexa, ask Qantas what time is my flight" "Alexa, ask Qantas when do I arrive" Flight status (within 24h from departure) "Alexa, ask Qantas what's my flight status" "Alexa, ask Qantas is my flight on time" Flight duration "Alexa, ask Qantas how long is my flight" "Alexa, ask Qantas what's the duration of my flight" Flight transit time "Alexa, ask Qantas how long is my layover in Sydney" "Alexa, ask Qantas what's my transit time" Qantas points balance "Alexa, ask Qantas what's my points balance" "Alexa, ask Qantas how many points do I have" Frequent Flyer status "Alexa, ask Qantas what's my membership status" "Alexa, ask Qantas how many status credits do I have"
- 60. “Alexa, open Village Cinemas” "Alexa, ask Village Cinemas what's on tonight?” “Alexa, ask Village Cinemas when is Pitch Perfect on tomorrow at Westfield?” “Alexa, ask Village Cinemas for kids movies.” “Alexa, ask Village Cinemas when is Black Panther showing in Gold Class?"
- 61. "Alexa, ask Domino's to place my order" "Alexa, ask Domino's to order my usual" "Alexa, ask Domino's to track my order"
- 62. “Alexa, open Dimmi” “Alexa ask Dimmi to make a booking at….. on Saturday night at 7pm for four people” “Alexa ask Dimmi to confirm the reservation”
- 63. “Alexa open Taste” “Alexa ask Taste for the recipe of the day” “Alexa ask Taste to filter recipes by time and amount of serves”. Ask for the amount of serves a recipe has. Ask for the time it takes to cook a recipe. You can add and remove ingredients interactively. Ask for the surprise recipe. Share this recipe via SMS. Ask for the amount of an specific ingredient”
- 64. “Google open Woolworths” “…Build a shopping list” “…Remember my favourites” “…Edit my list wherever, whenever” “…Use my shopping list in-store or online”
- 65. “Alexa open Airtasker” “Alexa, ask Airtasker to find me a gardener” “Alexa, ask Airtasker to find me a cleaner”
- 66. “Lucy, I am in pain” “Lucy, I need a nurse”
- 67. “We basically envision a world where Alexa is everywhere.” Priya Abani Amazon’s director of Alexa Voice Services Enablement
- 68. What does this all mean for Marketing?
- 69. Retention oRoutine re-evaluation of purchase will force incumbent brands to constantly justify their positions oCan’t be bothered to explore alternatives if a brand is performing adequately oLess switching if habit developed Source: Adapted from Niraj Dawar and Neil Bendle. Marketing in the Age of Alexa. HBR May-June 2018 Acquisition oBecomes even more of a science and will focus on the platform oProduct placement and recommendations on AI platforms are inevitable oListing fees and bid preferential positions will exist oCompanies will essentially reallocate to the platforms what they spend today on media, listing fees and retail commissions Satisfaction oPlatform drives satisfaction over brand oAble to satisfy and predict customer’s needs better than the customers themselves oFigure out the trade-offs consumers are willing to make Marketing Implications
- 70. So what?
- 71. Leading edge Innovators Click and Touch Keyword search Mobile optimisation Web and Mobile experience Omni-channel Marketing influenced Commerce Campaigns Touchpoint Availability Brand relationship Scaling Early adopters Speech Voice commands Voice optimisation Voice experience (VX) Omni-present Alexa Influenced Retail (AIR) Skills Mental Availability AI Assistant relationship Expected Shifts
- 72. Now what?
- 73. 1. Two AI platforms will dominate (2X US/Europe 2X China) 2. Most consumers will use only one assistant incorporated into their homes, cars and mobiles 3. The platform will get better with use, understanding habits and preferences to drive increased usage in a self-reinforcing cycle 4. AI platforms become a powerful marketing channel, sales and distribution channel, and fulfilment and service centre 5. AI platforms will have a lot of influence over prices and promotions and the consumer relationship 6. Consumers will shift allegiance from trusted brands to trusted AI assistants 7. There will be very little customer churn or switching 8. AI assistants will win customers’ trust and loyalty better than any previous marketing technology 9. Owners of platforms will drive unrivalled growth and profitability Source: Adapted from Niraj Dawar and Neil Bendle. Marketing in the Age of Alexa. HBR May-June 2018 Nine Predictions
- 74. Nine Actions 1. Get curious. Become a user 2. Dedicate some Technical resources to explore 3. Review the quality of your data structure 4. Experiment with Use Cases 5. Partner with AI Assistant Owners. Invest in understanding the algorithms the platforms use to recommend and choose products, including how they weight each brand for each consumer 6. Anticipate and test platforms as new communication channel 7. Build relevant skills for your brand 8. Physical retail will be more important for discovery and learning 9. Improve your direct customer relationship. Include voice as part of future personalisation.
- 76. Sources Niraj Dawar and Neil Bendle. Marketing in the Age of Alexa. HBR May-June 2018 Brad Abrams and Guillaume Laforge Google Cloud Next VB Profiles. Designed by Dan Miller, Derek Top & Nicolas De Kouchkovsky Sept 2017 Canalys Estimates & Forecasts Smart Speaker Analysis December 2017 Gartner Edison Research 2017 Voicebot Consumer Adoption Report January 2018 Jon Bird Forbes Business Insider Telsyte PWC Yahoo Finance