How Does eCommerce Product Recommendation Help?
Your eCommerce website is your biggest marketing channel. It is by optimizing your eCommerce website and leveraging the experience of your online shoppers that can increase your overall sales and conversions. When executed with care, eCommerce product recommendation methodology can boost both your sales and conversions.
- Store revenue from customers who were recommended products accounted for 26% of total revenue.
- Personalized Product recommendations increases eCommerce conversion rates by 915%, and
- The Average Order Value (AOV) across all devices go up by 3%.
All these numbers are real success metrics and all point towards one single element – Personalized eCommerce Product recommendations. A highly competent personalization software could get a store fully equipped with personalized product recommendations.
How do eCommerce Product Recommendation Work?
At its core, eCommerce product recommendation are nothing but a process of filtering information to suggest products of choice to your customers based on their online behavior, like browsing history, keyword-based searches, and their previous purchases. eCommerce Product recommendation engines then use this information to apply logic in terms of some pre-defined rules and algorithms to suggest products to customers.
A Great Example
Amazon has over the years come across as the pioneer of personalized product recommendations. A few philosophies behind Amazon’s own personalization software and product recommendations would include-
- Customers are looking at these Now
- Customers who bought this also bought these
- Recently viewed products and featured recommendations
- Customers have these in their virtual carts
In what ways can you replicate the principle in your eCommerce store?
After working with eCommerce websites, we can safely give you the following tips to effectively implement in your business-
- Display a list of suggested products based on the visitor’s browsing history -this adds a greater impact.
- Use “Frequently bought together” recommendations.
- Showcase “Featured recommendation” and “Recently viewed” suggestions – this introduces shoppers to items they wouldn’t have considered searching for otherwise.
- Show “Related items” suggestions to assist with ideas.
- “Customers who bought [this item] also bought [that item]” to suggest peer-generated recommendations.
- Put “There is a newer version of this item” notices in order to alert customers that a certain product has been updated.
- Personalize recommendations by showing items related to previous purchases
- Feature “best-selling items” for each brand.
- Back up your online product recommendations with automated emails.
- Offer special discounts for specific bundle of products.
- Show best-sellers across entire product categories – This will inspire customers to look around.
- Make sure all recommendations are relevant and timely
- Show product recommendations based on highest customer reviews and ratings.
- Cross-sell product recommendations when items are added to the cart
- Recommend products to remind the shopper about upcoming holidays or other special events.
- Add product recommendations to your “Cart Abandonment” emails.
The Final Word
The online shopper is bombarded with digital advertising and retargeting ads more often than not. When they search for a product online, millions of results show up. They have little time and only limited resources to buy it all. Hence, it is only natural that when these people visit your eCommerce website, 97-98% of them leave without a purchase. This is where eCommerce product recommendation come to play. They help users navigate through the websites only browsing through relevant products – saving their time and effort.