AI-Powered Recommendations: Impact on User Behavior

Our client generated 16X more revenue per cart with AI-powered recommendations

Product recommendations have become an integral part of enhancing user experiences and driving revenue for businesses. One powerful system that leverages cutting-edge technologies to provide personalized recommendations to users is Proto AI

Product recommendations influence user behavior

We aimed to evaluate the effectiveness of AI-powered recommendations on user behavior. The study began with randomly generated recommendations for our client, followed by the implementation of Proto AI to explore the impact and performance of Proto AI versus randomly generated recommendations.

AI-powered recommendations and the impact on revenue

During the period of randomly generated recommendations, a total of $254.35 in directly attributable revenue was generated. Comparing the same time period, after Proto AI was implemented $4,514.33 was generated. Indicating a significant increase in revenue with the implementation of AI-powered recommendations. The proprietary AI solution that drives Proto AI quickly learns, and just as quickly unlearns to deliver better, more accurate results that result in revenue lift.

Revenue generated per recommendation click followed a similar pattern. With randomly generated recommendations, the directly attributable revenue per recommendation clicked was $0.38. After the implementation of Proto AI, it rose to $4.47 — a lift of 1,176%.

Added benefits of recommendations on shopping cart

The cart conversion rate or the rate at which users who added items to their cart completed a purchase, was also analyzed. During the period of randomly generated recommendations, the cart conversion rate was 2.1%. After the implementation of Proto AI, it saw a lift of 452% to 9.5% The revenue per cart, an important metric to assess the value of sales, also showed a substantial increase after our recommendations were added. Randomly generated recommendations led to $2.68 per cart, with Proto AI the revenue per cart skyrocketed 16X to $45.23.

Drive shoppers to discover more products

The impact of AI-powered recommendations, particularly using Proto AI, showed significant improvements in revenue and user behavior. The added benefits, such as the conversion rate and revenue per cart, help showcase the effectiveness of Proto AI in driving sales and maximizing cart value by bringing products to the forefront for users whether they are browsing your site on desktop or mobile.

AI-powered recommendations can enhance the user experiences and boost business revenue. With advancements in AI, businesses can leverage systems, like Proto AI to provide personalized recommendations tailored to individual user preferences. AI-powered recommendations can lead to higher conversion rates and increased revenue to help ecommerce businesses stay ahead of the competition and deliver exceptional user experiences.

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