Every forward-thinking, customer-centric company understands the value of personalization. Customizing products and services is critical to prevent customers from defecting to the competition. The use of personalized product recommendations is another example of innovative ways to use personalization in modern business practice. Statistics show that 56% of all online shoppers are more likely to return to a product recommendation website. Because it puts the consumer first, it applies to all aspects of business outreach, including online shopping, digital advertising campaigns, email marketing, and more. As a result, statistics show that more than 90% of the ecommerce sites use personalized recommendations. So consider using these personalized product recommendations today, no matter the size of your business.
WHAT ARE CUSTOMIZED PRODUCT RECOMMENDATIONS?
Personalized product recommendation uses software and algorithms to present products that are unique to specific buyers. For context, product personalization criteria include customer browsing history, location, demographics, shopping cart contents, purchase history, search patterns, and social media habits. Essentially, the recommendation engines comb through available information to create a buyer persona that is exclusive to individual customers.
Customizing recommendations for different buyers improves the shopping experience. Consequently, it will boost sales, promote average order value (AOV), minimize cart abandonment, and save marketing dollars. According to Slideshare, 80% consumers are more likely to buy from a company that offers a tailored experience. In addition, personalization reduces customer acquisition costs by as much as 50%. Therefore, introducing personalized product recommendations for your company will lead to an increase in all KPIs.
HOW TO IMPROVE THE EFFICIENCY OF PERSONALIZED PRODUCT PROPERTIESVELINGEN
USING SOCIAL PROOF
88% of consumers trust user reviews as much as personalized product recommendations. Adding reviews with product recommendations automatically generates interest and encourages purchase. Moreover, slogans like 'best seller' or 'trending' tend to create awareness about a product. This gives a customer the impression that other people find the product useful and positions a brand as credible.
POSITIONINGRECOMMENDATIONSVELINGEN OVER VERVIFFERENT POINTS ON A WEBSITE
By posting recommendations on the website, there are plenty of opportunities to drive interest throughout the customer journey. However, product recommendations should be balanced. It is an attempt to encourage a purchase, not to deter customers. Therefore, for best practices, the following points to include recommendations:
- Homepage : This is the first contact a customer has with a business website. Ideally, the goal is to give a great first impression. Simply keeping a customer engaged with the page is all it takes to improve SERP rankings. Statistics show that personalized homepage promotions 85% influence consumers to buy. That's why it's a smart move to put products that customers are likely to buy on the homepage.
- Error page : Dead links are inevitable, and using personalized product recommendations on a 404 page creates an opportunity to provide service. For example, offer a discount on the shipping costs when purchasing an additional item.
- Product page : A customer who reaches this point indicates an interest in making a purchase. Placing products that are relevant to the customer increases the chance of completing the purchase.
- Cart page: There is still an option to recommend relevant products on this page. It is an excellent opportunity to cross-sell and up-sell products. Include a coupon with a product similar or complementary to the shopping cart, content works fine.
USING EMAIL RECOMMENDATIONSVELINGEN
According to HubSpot, personalization drives an average email open rate of 17.6%. A customer on an email list means the company has better information about them. So it implies that the recommendation generation tool can optimize data for the buyer persona. Email personalization becomes easier and guarantees purchase.
Typically, all marketers use pre-use testing and optimization of strategies; product recommendations are no exception. As much as the engines use the algorithm, human help is still necessary. Therefore, implementing a A/B test essential for achieving success with product recommendations. Test different models of personalized product recommendations on customers and compare the results with analytical tools. Then deploy the variants with better KPIs at scale.
DO NOT GO OVERBOARD
According to Adventure, 41% of consumers find it scary to receive personalized text messages from brands when they walk past a store. Recommendations should not be invasive; this can drive customers away rather than influence them. Therefore, for simplicity, it is best to maintain an optimal amount.
in short, personalized product recommendations are essential for any business. It eliminates the idea that customers are just numbers. In addition, it gives the customer the impression that they are understood by the brand they are spending their hard-earned money on. The strategies above will help your business get even more out of your recommendation engines today.