Ever walked into a store and had an associate suggest the perfect product you didn’t even know existed? That’s exactly what it feels like when product recommendation engines are working their magic in ecommerce. It’s the same as having your own personal shopper who knows just what you need.
You may be asking yourself, how do online stores manage to recommend the perfect accessory or pair of shoes that complement the outfit in my cart as I’m browsing?
It may seem like magic but in reality, it all boils down to understanding customer preferences based on behavior or viewed items and using this knowledge to your advantage.
The power of product recommendations in ecommerce
Product recommendations have a big impact on shopper behavior and overall ecommerce success. They can spark curiosity, leading customers to explore new product categories they hadn’t considered before.
Imagine entering your favorite store and being greeted by an associate who knows you well — your likes, dislikes, and past purchases. This associate is then able to suggest products that are tailored specifically for you. In the digital world of ecommerce, product recommendation engines play the role of this helpful associate. Digging deeper into how these product recommendation engines work gives us more insight into why they’re so effective at driving engagement and conversions.
A stat worth noting: According to Forrester, 89% of businesses are investing in personalization. That shows just how powerful well targeted recommendations can be.
Browsing behavior plays a crucial role in shaping the recommendations that a shopper sees. Every click, every page visit, and even time spent on each product contributes to this. It’s all about making sure shoppers see products based on their individual interests and behaviors. With this personalized touch, customers feel seen and appreciated
Improving Conversion Rates with Product Recommendations
Product recommendations are more than just a handy feature — they’re a potent tool for boosting conversion rates and improving the overall user experience.
How so? Well, they serve as a personalization tool that can help customers discover new products or remember items they might have forgotten to add to their cart. In essence, product recommendations make online shopping easier and more enjoyable for users while also increasing sales opportunities for your business.
To put it simply, when we talk about elevating conversion rates in ecommerce businesses through product recommendations, what we’re really talking about is increasing the average order value or AOV. The logic behind this strategy is simple: if shoppers see relevant suggestions at every stage of their buying journey – from browsing through checkout – there’s a good chance they’ll add one or two extra items to their basket before completing the purchase. This approach has proven successful time and again; stores using upselling techniques increase revenue by 10-30% on average.
A few ways to implement these strategies:
- Cross-selling: This involves recommending complementary goods that enhance the primary item being considered by the shopper—think shoes for a customer browsing shirt options for their next round of golf.
- Upselling: Upselling involves suggesting a higher-priced alternative or an upgraded version of the item that the shopper is considering. It’s about making sure they see all their options and are given every opportunity to choose something else if it suits them better.
By combining these approaches into a comprehensive suggestion approach, the potential for raising your average purchase value is high. It’s no wonder online shoppers feel like their favorite ecommerce stores know them better than they do, it’s because of personalized product recommendations, a tool that turns browsing into buying. These aren’t just random items thrown at the shopper; instead, these suggestions are based on careful analysis.
Implementing product recommendation strategies for sales growth
Growth is the lifeblood of any ecommerce business. A popular growth tactic in implementing product recommendations involves showcasing ‘Frequently Bought Together’ recommendations. Have you ever noticed while shopping online that there are suggestions below your chosen item labeled as “Customers who bought this also bought”? This strategy cleverly nudges customers towards adding more items into their carts by showing them products related or complementary to the one they’re looking at. However, you need to make sure the recommended items genuinely complement the initial product.
We all know that one size doesn’t fit all, especially in the world of ecommerce. This is why testing different product recommendation strategies is crucial for finding what truly resonates with your audience. Decoding the magic of ecommerce product recommendation strategies is not as daunting as it seems. Remember — each click tells a story.