Amazon Alexa users buy more stuff, study shows

Key Points
  • Amazon's Echo and Alexa's voice technology are helping consumer brands sell more, according to a new study by Linc Global.
  • Companies are finding ways to cross-sell and upsell through Alexa-powered devices, the report said.
  • The case study shows Amazon's voice technology is turning into a powerful marketing platform, analysts at Mizuho wrote in a note.
The Echo Plus looks premium, and almost identical to the original
Todd Haselton | CNBC

Amazon's Alexa voice technology is helping consumer brands sell more, according to a recent study, underscoring its potential as a major marketing platform.

The study, run by Linc Global and Rakuten, shows that Echo owners increased their purchases of consumer products, like diapers, by 13.5% in the third quarter of 2017, up from the 7.5% jump seen in the second quarter of this year. Those companies also saw an unusually high 60% upsell rate, meaning the consumers bought more products from the same brand after their Echo purchase.

"This study indicates that voice search has a positive impact on sales of standardized products," James Lee, an analyst at Mizuho Securities wrote in a note published Wednesday.

The broader takeaway, according to Lee, is that Alexa's voice technology could turn into a major marketing platform for consumer brands. For example, the note says Pamper diapers could build an Alexa app that recommends re-orders of previous purchases or new products based on past shopping history.

Amazon is also testing a new service that would potentially let customers order products from the consumer brand's Alexa app and pick up at local retailers, according the Mizuho note.

"Alexa's voice platform provides a powerful marketing channel for brands to sell direct," Lee wrote in the note.

Related: If Apple is serious about Siri, it needs to compete on Amazon's turf

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