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Amazon contains a serious Alexa user retention issue

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Amazon contains a serious Alexa user retention issue

The big picture: Amazon has done remarkably well in building, selling and mercantilism Alexa voice-powered hardware devices throughout year-end vacation seasons. Like mechanism, the e-commerce big habitually touts that its own devices, as well as the Echo Dot and its hearth TV follow Alexa Voice Remote, square measure prime sellers. We've no reason to doubt Amazon’s sales claims, however that’s apparently solely 1/2 the story.
According to a recent report from Bloomberg, Amazon contains a dirty very little secret that it's been competitory with for years.
Internal documents seen by Bloomberg recommend Amazon contains a serious user retention downside. knowledge indicates that there are some years where fifteen % to twenty five % of recent Alexa users were now not active into their second week of usage.
Their square measure seemingly has many layers to Amazon’s Alexa engagement issue.
The data mentioned by Bloomberg involves vacation sales, which seemingly suggests that a major portion of recent devices square measure being received as gifts. Perhaps these users ne'er extremely needed AN Echo to start with and solely hooked it as a sort gesture to the gift-giver.
 
Bloomberg conjointly talks regarding Alexa’s utility as a barrier aboard privacy considerations. Some apparently solely use Alexa for one or two of tasks, like setting a room timer whereas they cook, to play music or toggle the lights on and off, oblivious to the numerous alternative functions Alexa will perform. Once Amazon started having Alexa offer suggestions a lot, some users got aggravated.
Amazon proponent Kinley Pearsall unemployed this negative read of Alexa. "The assertion that Alexa growth is retardation isn't correct," she said. "The truth is that Alexa continues to grow - we tend to see an increase in client usage, and Alexa is employed in additional households round the world than ever before."



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