Gadget NewsAmazon has a serious Alexa user retention issue

DarylDecember 23, 2021

The bigger picture? Amazon has done remarkably well in building, marketing, and selling Alexa voice-powered hardware devices during the year-end holiday seasons. As if it were clockwork, Amazon boasts that it sells its own devices, including the Echo Dot and the FireTV Stick with Alexa Voice Remote. So, we do not have any reason to doubt amazon’s sales claims, but that’s only half of the story.

So according to a recent report by Bloomberg, Amazon is suffering from a dirty little secret. It has been struggling with that secret for years.

The internal documents that Bloomberg reviewed suggest that Amazon has a serious problem with its users. Some studies have indicated that during some years, 15 percent to 25 per cent of new users had stopped being active within the first week of using Alexa.

There are probably several layers to amazon’s Alexa engagement issue.

What Bloomberg said related to holiday sales, which likely means that a large portion of the new devices is being given to people as gifts. Some users might not have actually wanted an echo, but they might have hooked it up just as a nice gesture to the person granting the gift.

Bloomberg also discusses the privacy concerns surrounding Alexa, and how useful it can be as a barrier. Some people use Alexa only to complete a handful of tasks, such as setting a kitchen timer while they cook, playing music, and toggling the lights on and off. They don’t pay attention to the many other tasks that Alexa can perform. When Amazon started to allow Alexa to suggest things more frequently, some users became annoyed.

The Amazon spokesperson Kinley Pearsall dismissed those pessimistic views of Alexa. He said that the claims that Alexa growth is slowing are not accurate. The truth is that Alexa continues to grow. More people are using Alexa in more households around the world than ever before.

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