Research from Parks Associates finds smart speakers inspire strong brand loyalty among owners – 97 per cent of smart speaker households own only one brand in this device category.
The research reveals two-thirds of smart speaker households own an Echo device, while almost one-third own a Google Home. Low-end models such as the Echo Dot and Google Home Mini are the most common products owned, but the trend of brand loyalty in this early market creates opportunities for device makers to upsell premium products.
“More than 50 per cent of US broadband households bought at least one CE product in the past year, and close to one-third (16 per cent of all US broadband households) spent more than $1,000 on CE purchases in that time,” said Kristen Hanich, Senior Analyst, Parks Associates. “These top and high spenders are willing to pay a premium for high-end products and can be drawn to products that will impress their friends and neighbours. Ownership of many high-end devices overlaps, particularly among newer product categories such as smart speakers or high-end tethered VR systems, so device makers can follow the demographics to target these top-dollar consumers when designing and promoting their premium-tier products.”
Consumers who spent over $1,000 in the past 12 months on CE products, defined in Parks Associates’ segmentation as “Top Spenders” and “High Spenders,” also report the highest intentions to purchase products in the next twelve months. Purchase intentions are highest with regards to laptops, televisions, smart speakers with voice assistants, streaming media players, and soundbars.
“Smart speaker owners are increasingly adopting multiple devices in various rooms of the household,” Hanich said. “Device makers can leverage this tendency toward repeat and extra purchases to bundle new and premium products with smart speaker sales.”
Additional research highlights: