Product recommendation engines are growing in popularity amongst small and medium-sized business owners who have become acquainted with the success of sites like Netflix and Amazon, which utilize this technique. If you're not sure how and if a product recommendation engine can benefit your business, read on to understand better what it means and how it can be used.
Although there are basic discrepancies amongst product recommendation engines in how they make recommendations, all of the systems have basic similarities:
Product recommendation engines can make the following types of recommendations:
This system takes note of every action a visitor to your site makes and the amount of time the visitor spends on each activity from the moment they reach your website to the time they leave. Moreover, the visitor also compiles data from every session or every instance the visitor stays at your website. These systems will then interpret and analyze the accumulated data and from there make recommendations based on the user’s behavior.
This is possibly only if your eCommerce recommender system has a social feature. When you enable your users to sign up and sign in with their Facebook username and password, this is taking place. Other product recommendation engines enable users to sign up with their Gmail or Yahoo accounts or even their Twitter accounts.
Recommendations made by your system will then be based on the products purchased by individuals belonging to the user's network. This is extremely effective when you are targeting a demographic influenced by their peers.
This particular function is quite different from the other types of recommendations these systems provide. Studies show that this type of interaction can increase your website's conversion rate by almost 50% just as long as the nature of your correspondence is strategically effective of course.
Product recommendation engines provide the following benefits in terms of increasing sales for your business. Once you have your product recommendation engine fully integrated into your site, look in having the following occur:
In summary, these benefits have the advantage of producing a bigger profit margin for your online business.
Ruben Corbo writes about various topics, including technology, online marketing, tracking and testing. He writes for different audiences and companies, including Maxymiser, a Product Recommendation Engine. When Ruben is not writing he is composing or producing music for short films and other visual arts.