In the ever-evolving landscape of e-commerce, harnessing the power of intelligent product recommendations is a game-changer. The product recommendations not only enhance the customer experience but also play a pivotal role in increasing the average order value and overall conversions.
Let's delve into 21 effective tips to seamlessly integrate and optimize product recommendations on your e-commerce platform.
UNDERSTANDING THE DYNAMICS OF E-COMMERCE PRODUCT RECOMMENDATION ENGINES
Before diving into the tips, it's essential to grasp how product recommendation engines work. These engines employ machine learning to analyze user behavior and preferences, displaying increasingly relevant product suggestions. There are three fundamental approaches to configuring the underlying algorithm:
- Analyzes user likes and dislikes based on browsing history.
- Recommends products similar to those the user has shown interest in.
- Incorporates data from users with similar purchase patterns.
- Assumes users will prefer items purchased by others with similar interests.
- Combines content-based and collaborative-based approaches.
- Personalizes recommendations based on both group decisions and individual attributes.
Now, let's explore why product recommendations are crucial and unveil the actionable tips for effective implementation.
THE IMPORTANCE OF PRODUCT RECOMMENDATIONS
The incorporation of product recommendations is not just a high-tech trend; it's a proven strategy with significant benefits:
- Product recommendations accounted for up to 31 percent of e-commerce revenue (Barilliance, 2018).
- Recommendations contribute to 24 percent of orders and 26 percent of revenue from just 7 percent of total site traffic (Salesforce study).
- Personalization increases the likelihood of a prospect purchasing by 75 percent (Accenture).
21 TIPS FOR OPTIMIZING E-COMMERCE PRODUCT RECOMMENDATIONS
DISPLAY PRODUCTS BASED ON BROWSING HISTORY
Utilize "Recommended for you" lists based on the visitor’s browsing history, adding a personal touch by incorporating the shopper’s name.
USE "FREQUENTLY BOUGHT TOGETHER" RECOMMENDATIONS
Suggest bundles of items frequently purchased together, providing value and boosting the average order value.
INTEGRATE PRODUCT RECOMMENDATIONS INTO EMAIL CAMPAIGNS
Send personalized emails with recommendations based on a customer's recent purchase history, enhancing engagement.
INTRODUCE SHOPPERS TO NEW ITEMS
Feature "Featured recommendations" and "Recently viewed" suggestions to inspire shoppers with new and relevant products.
SAVE POTENTIALLY LOST SALES
Display the shopper’s browsing history to help them find items they previously viewed, preventing potential sales loss.
SHOW PRODUCTS "RELATED TO ITEMS YOU’VE VIEWED"
Encourage users to add additional items to their cart by displaying related product recommendations on product pages.
PROVIDE SOCIAL PROOF
Leverage "Customers who bought [this item] also bought [that item]" recommendations for social proof and peer-generated suggestions.
POINT TO NEW PRODUCTS
Generate notifications about updated products with "There is a newer version of this item" alerts.
PERSONALIZE PRODUCT RECOMMENDATIONS
Enhance personalization by showing items related to previous purchases and other user attributes such as hobbies or preferences.
FEATURE BEST-SELLING ITEMS FOR EACH BRAND
Showcase popular products from various brands for indirect social proof and confidence-building.
GENERATE PRODUCT BUNDLES
Group frequently purchased items together, offering special discounts for complete transactions.
SHOW BESTSELLERS ACROSS DIFFERENT CATEGORIES
Showcase bestsellers from different categories to introduce shoppers to a variety of popular products.
MAKE SURE RECOMMENDATIONS ARE RELEVANT AND TIMELY
Ensure recommendations align with the shopper's interests and are timed appropriately, avoiding promoting seasonal products at the wrong time.
KEEP POPULAR PRODUCTS HIGHLIGHTED
Adjust recommendations to keep popular products in the spotlight, providing additional exposure for lower-selling items.
SHOWCASE YOUR HIGHEST RATED ITEMS
Inject social proof into recommendations by displaying items with the highest customer reviews.
KNOW YOUR VISITORS
Segment audiences based on demographics and psychographics to personalize recommendations based on interests and needs.
CROSS-SELL RELEVANT PRODUCTS VIA RECOMMENDATIONS
Offer product recommendations for accessories or complementary items when items are added to the cart.
USE PRODUCT RECOMMENDATIONS TO UPSELL
Encourage upselling by recommending more fully-featured versions of the currently browsed products.
GET SEASONAL WITH YOUR RECOMMENDATIONS
Tailor recommendations to align with upcoming holidays or special events, keeping shoppers informed and engaged.
NEVER STOP A/B TESTING
Continuously test different product recommendation strategies to optimize results and enhance conversion rates.
OFFER PRODUCT PAIRINGS ON THE CART PAGE
Present product recommendations on the cart page, suggesting complementary items before the checkout process.
HOW TO DISPLAY PRODUCT RECOMMENDATIONS THROUGHOUT THE SALES CYCLE
Tailoring product recommendations to different stages of the sales cycle is crucial for optimal results:
HOMEPAGE: "MOST POPULAR" AND "RECENTLY VIEWED"
- Showcase bestsellers to attract new and existing customers.
- Dynamically personalize recommendations for returning customers based on their preferences.
CATEGORY PAGES: "MOST POPULAR"
- Promote "Most Popular in Category" products to prevent bestsellers from getting lost in large inventories.
PRODUCT PAGES AND CART PAGES: "BOUGHT TOGETHER" AND "SIMILAR PRODUCTS"
- Use "Bought Together" and "Similar Products" strategies to upsell and cross-sell based on the shopper's interests.
PRODUCT RECOMMENDATION Q&AS: EVERYTHING YOU NEED TO KNOW
HOW CAN PRODUCT RECOMMENDATIONS BE IMPROVED?
Product recommendation engines continually improve through machine learning. They adapt to user behavior, learning from clicks and purchases to refine and enhance recommendations.
HOW DO YOU WRITE A PRODUCT RECOMMENDATION?
Writing product recommendations is not a manual task. The AI technology behind recommendation engines generates product suggestions based on user behavior and preferences. Focus on crafting compelling product titles and descriptions to align with your brand voice.
WHAT ARE PERSONALIZED PRODUCT RECOMMENDATIONS?
Personalized product recommendations use customer data to offer tailored suggestions. This data includes browsing history, cart items, past purchases, and additional information provided by the customer, such as lifestyle and interests.
HOW EFFECTIVE ARE PRODUCT RECOMMENDATIONS?
The statistics speak volumes:
- Product recommendations account for up to 31 percent of e-commerce revenue.
- Shoppers clicking on product recommendations exhibit a conversion rate 5.5 times higher than those who don't.
THE #1 REASON WHY YOU SHOULD GET STARTED WITH PRODUCT RECOMMENDATIONS
Strategic marketing plans vary from company to company. Tactics that fit one business often aren’t a wise move for another business. Implementing a product recommendation engine, however, is something every ecommerce manager should seriously consider.
Here’s why: your competitors will soon enough and the advantage gained from applying product recommendation examples, like the ones given above, is significant.
If you’re looking for a simple and highly-effective way to improve personalization for your ecommerce.
Schedule a meeting to start a growth marketing strategy, based on your customer and business insights, in a few weeks.