Imagine walking into your favorite retail establishment and the main products showcased are ones in which you have an interest. This is all based on your past shopping at that particular retail outlet and your past purchases in particular. Imagine the time you'd save if everything you're shopping for was within an aisle or two away!
The beauty of an ecommerce website is that you are able to provide your users with that kind of personalized experience, and study after study proves that not only do customers like this, but it also leads to increased conversions and more sales.
What exactly are personalized product recommendations?
A personalized product recommendation is based on user behavior. These are products that have been frequently purchased or viewed with the one the online shopper is currently considering. Another product recommendation aspect involves personalized recommendations based on past browsing or purchasing history from that particular consumer.
Did you know that 100% of the top 10 ecommerce websites in the Internet Retailer Top 500 use product recommendations? They're in the top 10 for a variety of reasons, but this is a main one.
Here are the 4 main reasons to utilize product recommendations:
- Provides a better shopping experience for your customer. According to Invesp Consulting, 53% of online shoppers believe that retailers who personalize the shopping experience provide a valuable service and 56% of online shoppers are more likely to return to a site that recommends products. Customers like it because it saves them time and it personalizes their experience.
- Increases conversion rate. According to recent studies, visitors who clicked on product recommendations converted at a rate 5 times higher than the conversion rate on non-clicking customers.
- Average order value increases. Having a product recommendation feature increases the average order value 50%, according to Forrester Research.
- Provides you with better, more useful data. Knowing and understanding your customers' online behavior when engaging with your website is absolutely essential in today's competitive marketplace. Look at your data and analytics and then intelligently configure your product recommendations. This will increase your efficiency.
The ability to offer customers a flexible and personalized shopping experience, with product recommendations and related product offerings, is one of the most important among all possible advantages retailers have with their ecommerce presence. Use this advantage and see your profits increase while your customers enjoy a positive online user experience with your brand.