The 10 Benefits of a Recommendation Engine: Increasing AOV, Engaging Shoppers, and More

June 14, 2020
 
Recommendation Engine

There are many uses for a recommendation engine on an ecommerce website. It can generate product recommendations, create personalized emails, and better showcase products that deserve a little more attention.

On top of strengthening relationships with your customers, the right engine can provide higher returns to your business as it can help boost engagement opportunities with your products and offer a greater influx of cross-sell opportunities.

As ecommerce activity continues to explode post-COVID, online retailers are seeking out more and more ways to give shoppers a dynamic buying experience that’s customized to their wavering needs and intent.

If you’re shopping for a recommendation engine, here are several key benefits you may want to consider while information-gathering.

Recommendation Engine Benefits

Drive Traffic

Through personalized email messages and targeted blasts, a recommendation engine can encourage elevated amounts of traffic to your site, thus increasing the opportunity to scoop up more data to further enrich a customer profile.

Deliver Relevant Content

By analyzing the customer’s current site usage and previous browsing history, a recommendation engine can deliver relevant product recommendations as he or she shops based on said profile. The data is collected in real time so the software can react as shopping habits change on the fly.

Engage Shoppers

Shoppers become more engaged when personalized product recommendations are made to them across the customer journey. Through individualized product recs, customers are able to delve more deeply into your product line without having to dive into (and very likely get lost in) an ecommerce rabbit hole.

Kibo Research shows that 52% of retailers are leveraging AI-driven personalization to deliver personalized product recommendations to their customers.

Convert Shoppers to Customers

Converting shoppers into customers takes a special touch. Personalized interactions from a recommendation engine show your customer that he or she is valued as an individual, in turn, engendering long-term loyalty.

Increase Average Order Value

Average order values typically go up when an engine is leveraged to display personalized options as shoppers are more willing to spend generously on items they thoroughly covet.

Increase Number of Items per Order

In addition to the average order value rising, the number of items per order also typically rises when an engine is employed. When the customer is shown options that meet his or her interest, they are far more likely to add items to to their active purchase cart.

Control Merchandising and Inventory Rules

A recommendation engine can add your marketing and inventory control directives to a customer’s profile to feature products that are on clearance or overstocked so as to avoid unnecessary shopping friction and tone deafness.

Reduce Workload and Overhead

The volume of data required to create a personal shopping experience for each customer is usually far too large to be managed manually. Using an engine automates this process, easing the workload for your IT staff.

Provide Reports

Detailed reports are an integral part of a personalization system. Accurate and up-to-the-minute reporting will allow you to make informed decisions about the direction of a campaign or the structure of a product page.

Offer Advice and Direction

An experienced recommendation provider like Kibo can offer advice on how to use the data collected from your engine. Acting as a partner and a consultant, the provider should have the industry know-how needed to help guide you and your ecommerce site to a prosperous future.