Monday, 31 January 2022 13:39

Generate Revenue with A Product Recommendation Engine

product recommendation engine product recommendation engine unplash

Most of us encounter product recommendation engines when we visit an ecommerce site and see the “you might also like” section. The suggestion section of these websites is run by rules-based algorithms that offer the most relevant items to visitors.

 

What is a Product Recommendation Engine

A product recommendation engine scans large amounts of information such as browsing behavior and shopping history in order to make personalized suggestions for each customer.

Essentially, recommendation engines are sophisticated filtering systems that anticipate and show the items a customer might like to purchase. Behind each effective recommendation engine is a business rules engine that makes countless decisions in an instant.

Data Used to Make Suggestions

Brands use various information to suggest items to customers including the following:

  • Browsing Behavior
  • Customer Ratings
  • Recently Viewed Items
  • Shopping History
  • Session Duration

Using this information, a recommendation engine can offer relevant products that might pique the interest of customers.

Recommendation Methods

Recommendation engines are classified according to the type of information they use to make suggestions. Most fall into these groups:

  • Collaborative Filtering 
  • Content Filtering 
  • Hybrid Filtering

Let's now take a look at how these filtering systems function.

Collaborative Recommendations

The collaborative recommendation typically makes suggestions based on the purchase and browsing information for a few items by many visitors. The most common example of collaborative filtering is the suggestion, “people who bought this item also bought that item”. 

Content-Based Recommendations

Content-based algorithms display items that resemble ones that the customer has liked or purchased in the past. These types of recommendation engines generate the ‘since you bought this product, you’ll also like this product’ suggestions on many ecommerce websites.

Hybrid Recommendations

As the name suggests, the hybrid method uses features from both the collaborative and content-based filtering systems. It combines information from similar customers with the past preferences of each site visitor.

For example, an online retailer might use data on customers who bought a gaming desktop computer with an individual customer who purchased a gaming desktop computer.

The filtering system can be set up to display high-definition monitors because other customers who purchased desktop computers for gaming also bought high-definition monitors and the individual shopper also browsed for monitors in the past.

Benefits Recommendation Engines

A product recommendation engine boosts brand awareness, customer retention, and drives revenue. 

Average Order Value

Filtering systems are a great way to cross-sell, upsell, and sell slow-moving products.

Product recommendation engines that display to your site visitors a large amount volume of useful items that complement their purchases are likely to be of use to them.

Bundle Up Items

Brands can use recommendation engines to put together several related items into one bundle to upsell or cross-sell products across different description groups. 

Online retailers can use customer behavior and shopping history are very useful data points that enable a recommendation tool to suggest items that could be bundled up together.

Increasing Customer Retention Rates

Making product recommendations is not as simple as it may seem. Businesses need to make sure that their recommendations are relevant in order to avoid showing items that don't are out of stock or don't ship to a customer’s location. Properly configured product recommendation engines take all these parameters into account to provide a seamless customer journey.

The Customer Experience Improves with Personalization

Product recommendations engines give visitors personalized content based on data that includes their, interests, needs, and shopping behavior. 

When consumers find what they’re searching for along with other relevant products with ease, the customer experience is improved.

  • Carpe Diem Coin - Remember to seize the moment
    Carpe Diem Coin - Remember to seize the moment

    Has it ever happened to you to simply forget why you are happy? If there are days when you want someone or something to remind you that you need to just enjoy the moment, the Carpe Diem coin is a perfect choice.

  • Why Connected Car Technology Is Crucial for the Future of the Automotive Industry
    Why Connected Car Technology Is Crucial for the Future of the Automotive Industry

    Future mobility relies on vehicle connectivity, electric vehicles, autonomous driving solutions, Internet of Things, mobile apps, and sensory data. All these solutions build an environment where connected vehicles can flourish, while simultaneously, being necessary for the further development of various technologies

  • The Easiest and Affordable Way To Ship A Car with Safemile Auto Transport
    The Easiest and Affordable Way To Ship A Car with Safemile Auto Transport

    When you need to transport a vehicle from one location to another, you need a reliable and reputable company that you can trust. Safemile Auto Transport is a leading provider of car shipping services, and we offer several advantages that make us the best choice for your needs.

  • How to start your ecommerce store?
    How to start your ecommerce store?

    Nowadays, you can't escape online sales - it's the most convenient solution for both customers and businesses. However, setting up an online store can seem intimidating to novice sellers.

  • How The Rich Celebrate A Stag Party
    How The Rich Celebrate A Stag Party

    If money was no object and you could spend as much as you want on a Stag Weekend, what would you do? Big spenders go to crazy lengths to celebrate the status of a single person’s progression to a married person status for income tax purposes as well as the undefinable love factor.