Product recommendations on your website to seamlessly boost sales
Posted On November 15th 2020
The rise in digitalization today opened up a plethora of opportunities for businesses. That is why business models like e-commerce and commercial websites are in trend. Approximately 2.05 billion people around the globe opted for digital shopping in the year 2020, among which 81% researched a product online before buying it. These statistics bring to the forefront the significance of product recommendation engines in achieving a lucrative conversion rate.
How does product recommendation for eCommerce increase eCommerce conversions?
Any website, eCommerce or not, survives on the conversion rate. Providing a personal touch is the best strategy to boost the customer base for a website. These personalized product recommendations can be achieved using an AI driven plug and play solution that analyzes the website's user activity and displays products based on their interest patterns. Such solution should be capable of tracking the user behavior on the website and recommend products that the user might need on priority. This makes the search for the desired product easier for the user and thus generates consistent and recurring customers to such a website.
Some of the best techniques of product recommendation that helped business giants like Amazon reach the heights that they are at today are listed below.
1. Frequently Bought Together is a method that recommends related products to the item that other customers have already bought. For example, for a mobile phone purchase, products like earphones, phone cases, etc. are displayed in the "Frequently Bought Together" section.
2. Highlighting the Latest Products and Top Selling Products is a strategy that familiarizes the users with the website's best sellers, thus presenting the best version of the website to the customers for securing the best impression.
3. Recently viewed products are the most successful feature of product recommendation engines since it works on a sophisticated AI that pursues the user's online activity and presents to them the most required product based on the analysis.
Revenue generated by using a product recommendation engine
Homepage recommendations make up almost 70% of the Amazon home page, and sales on online stores like Amazon boost the sales to approximately 0.5%.
AI systems can optimize product categories of the online store. This function of the recommendation engine is estimated to increase the revenue by 1.3%. This means that if a particular user has a penchant for buying books online, the engine can recommend top-selling books to the user the next time they visit the online store.
Shopping cart recommendations are another function of the AI-powered engines that give the online stores an additional revenue of 1.5%. These automation procedures are a huge blessing to the rapidly growing businesses on digital platforms.
To take advantage of all these features, it is imperative to select the best engine provider that helps boost online sales. This is where Datsy.io comes into the picture. An AI on SaaS provider, Datsy has a very personalized approach for developing recommendation engines. Our software caters to the specific personalization needs of tier-2 and tier-3 businesses by providing recommendations based on the client catalog. Our services range from e-Commerce, e-learning, OTT platforms, and the like. Get in touch with us for a free assessment today!
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