5 Ways an Online Recommendation

Engine can Increase Sales

According to a Forrester study, 15% of visitors admit to buying

recommended products.

HOWcan product

recommendations help you increase

online sales?

Offer a personalized shopping experience to

your visitors.

#1

Personalization leads to greater conversions.

Recommendation engines must efficiently analyze on site behaviour and understand visitor preferences.

73% of customers prefer personalized

shopping experiences

Food for thought...

Manual recommendations cannot personalize to the extent an automated recommendation engine can.

WHY

are automated recommendations better

for personalization?

Manual Recommendations

Automated Recommendations

● An intelligent algorithm that tracks visitor behaviour, uses collaborative filtering etc.

● No manual intervention● Accurate

● Allow merchandizers to pick complementary categories or specify recommendations per product

● Laborious & time-consuming● Inaccurate

Cross-sell complementary products to your

visitors.

#2

Recommendation widgets like ‘Frequently bought together’, ‘People who bought this also bought’ etc.

show complementary products to visitors and boost conversions.

According to Mckinsey, cross-selling techniques

increase sales by 20% and profits by 30%.

For example, Amazon shows related products such as sandals, handbag etc as recommendations for a dress.

Show recommendations that deliver Social

Proof

#3

Recommendation widgets like ‘People who viewed this also viewed’ show recommendations based on

the wisdom of crowd and use social proof to engage visitors.

‘Content sharing (reviews, testimonials etc.) can influence consumers more than price and

brand, and motivate people to spend 9.5% more’.

Source: Smart Insights Blog

For example, for this handbag, Zappos shows recommendations that foster social proof.

Personalization based on location &

time

#4

Some recommendation tools consider location/weather/time to further personalize the

shopping experience.

Location-based recommendations make

product suggestions more relevant and contribute to

higher conversions.

For example,during summers it makes sense to show recommendations for summer dresses.

You would show different top-sellers in Miami than the ones you show in Alaska primarily because of location/weather differences.

Upsell alternate products to your

visitors

#5

Recommendation widgets like ‘More like these’/ ‘Similar products’ are used to upsell products that

helps increase conversions significantly.

Amazon reported that 35% of its revenues were as a direct result of it’s cross sales and upselling efforts.

Upselling has two critical benefits

1. Product Discovery Show more products and give better options to visitors.

2. Increase AOVProducts with better features encourage visitors to spend more and increase the average order value.

For example, Asos upsells with the ‘We recommend’ widget to show similar products.

1. Offer a personalized shopping experience to your visitors

2. Cross-sell complementary products to your visitors

3. Show recommendations that deliver Social Proof

4. Personalization based on location & time

5. Upsell alternate products to your visitors

CONCLUSION

Key takeaways

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