Amazon Enters the Calling and Texting Battlefield
Latest posts by Fred Schaub (see all)
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On May 10th 2017, Amazon announced that they were rolling out a new feature for their digital personal assistant, Alexa – free calls and texts between users of Amazon Echo devices.
While it is not the first time that Amazon is trying to penetrate a new market, or create one, this is a complicated one to enter. They have tried to join the travel industry, but did not succeed. They have also been pioneers in drone delivery, and I would not be surprised to see it become the norm in a few years. Amazon was also part of the firsts to join the digital personal assistant race with their Alexa product, which they keep improving at a very fast pace.
What is Alexa?
Alexa is the name Amazon gave to its voice-commanded digital personal assistant, which people interact with through the Amazon Echo, Echo Dot, Echo Tap or Echo view devices.
You may have read my post about Chatbots; Alexa is a very powerful and sophisticated Chatbot. While commands are still a little strict (not yet a fluid conversation), you can have fun: if you tell her “Alexa, see you later, alligator” she WILL reply, “in a while crocodile!”
Amazon Echo Dot (Image Source: Amazon)
Alexa can do a wide variety of tasks, from setting up a timer, to playing your favorite song, reading the news, telling you a joke, turning on the lights, playing games or even ordering from your Amazon account the latest item you need. All of this by simply talking to the device.
Amazon allows developers to build Alexa capabilities in a similar way to how they would develop apps for iPhone or Android; allowing the world to create capabilities for their devices, providing scale instantly.
And now, they even allow you to call and text through Alexa!
So why does it matter that they offer calling + texting functionalities?
With approximately 65 million Amazon Prime users (paid subscription to get free deliveries, access to music and films plus more) and an overall estimated 300 million users in total, Amazon is a gigantic ecosystem of its own. When rolling out new features, Amazon instantly touchs hundreds of millions of people; similar to Facebook or Google rolling out a new feature.
The battlefield for calling and texting is crowded however, with very large players already heavily in it such as Facebook with both WhatsApp and Messenger, Apple with iMessage, Microsoft with Skype, the Japanese platform Line and many others.
With approximately 4.9 billion mobile users across the world (WeAreSocial + Hootsuite 2017 report) the opportunity to attract and retain users – and then monetize the relationship one way or another – is gigantic.
By offering this new service, Amazon is trying to take a piece of this pot, getting deeper in day-to-day lives, gathering more data and knowledge about their user’s habits which they can then aggregate into insights for the advertisers on their platform allowing for more personalized experiences and recommendations.
The more actions you can do in one ecosystem, the fewer things you have to get into another ecosystem to get done. When Amazon allows you to seamlessly make lists, order items online and listen to the news, that’s a wide array of other third party apps and systems they have now rendered useless.
By allowing users to call and text, they are – to some extent – replacing your need for a smartphone.
How is this applicable to the hotel industry?
Marriott International is a pioneer in the technology actually, always looking into creative ways to integrate technology in their hotel rooms. Currently Marriott is testing multiple variations in a few hotels, enabling guests to request services, manage their room (lights, tv, etc.), and learn about the local area through voice commands, talking with Alexa.
Wynn Hotels also jumped into it, and already offer it across all their rooms in Las Vegas.
Thinking about the future, I wouldn’t be surprised if brands and marketers start leveraging voice-command digital personal assistants more heavily to answer customer needs and enabling faster/more efficient service for all of a guest’s little requests. True luxury will always require a human touch in my mind, but where applicable, technology will take a larger part in the coming years.
As voice-commanded digital assistants become the norm in households, a guest’s expectation will be to experience this in his/her hotel room. Now whether it’s an Amazon Alexa, Google Home, Siri-enabled iPad or another player yet to come, only time will tell.