Discovering Connected Objects in 2017

How can brands make use of systems like Alexa this year?

This post is the last in a series of three, looking at the prevailing tech trends that brands should be thinking about as we begin a new year. The first post looked at New Realities and the second one considered Smart Systems. An introductory previous post pondered why these trends seem to be same as last time round.

The Amazon Echo marks a breakthrough for both connected devices and “Virtual Personal Assistants.”

Whilst VR, AR, and AI seemed to dominate tech headlines for much of last year, it was an in-home connected device that “won” Christmas and has since been the standout story at CES even though the device in question — the Amazon Echo — wasn’t even present at the event. The Echo is one of an increasing number of similar devices available to the public, all a physical embodiment of the AI that powers them. Each mix voice receivers, speakers, and software that some would call a “virtual assistant” (which for many devices is currently Amazon’s software, Alexa) and has also accurately been described as an “operating system”. Similar to wearable technology devices, such as the FitBit or Apple Watch, and smart in-car software (which increasingly includes the very same virtual assistants seen in other devices), this in-home hardware is embedded into people’s everyday lives, physically close to the user and always available.

Compared to a technology like Virtual Reality, something like the Echo certainly shows the potential to be in the homes of something more like the mainstream. Amazon doesn’t publish finite sales figures, but an announcement of a 9x increase in Echo device sales this Christmas compared to last, along with estimates of around 5 million Echos sold globally last year, show that this is the case. Of course, one must consider the price point (£50 for the cheapest Echo device) and for me, more than anything, Amazon’s astronomical power to sell to the masses (their post-Christmas press release was one of the most astounding things in the world of tech and business that I read last year). Amazon gave the Echo headline billing on their homepage in the lead up to Christmas, when their customers were ready and Primed (sorry) for shiny new things as gifts to others or to their home — even if they didn’t quite know what they did. If Amazon had pushed a VR headset in the same way that retailed at under a £100, I wonder how many of those they would have shifted? This is not to put down the Echo, but a comment on the power of Amazon as a retailer, something that Google, Apple, Microsoft, et al., do not have. Perhaps this will come to count for more as emerging tech of different kinds crosses into the mainstream.

Even if customers receiving an Echo for Christmas perhaps found limited uses for the device, there are plenty of “Skills” being developed by third-parties for the device, and this growing addressable market will no doubt see an explosion in development of voice-activated applications this year. It is tricky to mark the immediate opportunity for brands here without thinking about the bigger issue of the mid to long term implications for customers’ shopping habits and brand choices. For some brands the opportunity to create a Skill of their own is an exciting one if they have genuinely useful functionality to offer device users. With this comes an interesting challenge here around designing experiences for voice. Not dissimilar to designing chatbots, brands will need to carefully think about how their brand sounds and acts, using only voice. I’d say it makes sense for brands to think about these new forms — voice and text — in tandem if they’re seeking a consistent brand experience.

But it’s hard to imagine a world where brands each have their own apps or Skills for these in-home devices that people use over the main operating system, and perhaps a select few dominant apps that emerge (yes, it’s like mobile Apps again). This brings me onto the overriding mid to long term implication of people using virtual assistants, in fact whether that’s activated by voice or otherwise. Virtual assistants are all about making things easier for the user, and voice in particular isn’t good for browsing. This leads to a place where users allow the “operating system”, whether that’s Amazon, Google, or otherwise, to make their decisions for them. What to watch, where to go, what to buy. As we have seen with search, the power of the operating system increases, “the top link” (chosen by said operating system) often wins out, the first place gets stronger. It’s a case of winner takes all when the virtual assistant defaults to what it thinks is the best answer and the user usually goes with it. There is plenty of uncertainty about where this will go, but it makes sense for brands to learn the lessons of SEO by getting their digital houses in order in preparation, rather than pay the price later.

So, what should brands do this year?

• Find out whether your brand already has presence on devices like the Echo through existing ‘Skills’. What are the implications of this?
• Think about whether your brand has a useful Skill it could bring to the platform. If so, start designing for automated conversational dialogue with customers — how does your brand act and sound?
• Begin preparations for a near future of virtual assistants making brand choices for your customers: all the rules of a solid SEO strategy are likely to apply, including having a genuinely good product/service of course!