product recommendations

How do product recommendations influence buyer behavior?

From the original matching algorithms to show similar products to the sophisticated machine learning technology that now harnesses user behavior insights, the world of recommendations has changed immensely.

Over the years, online shoppers have gotten more and more used to seeing and acting upon product recommendations.

Four facts you need to know about product recommendations

Product recommendations are responsible for an average of 10%-30% of ecommerce site revenues.

However, with so many ways to present product recommendations, I’ve decided to highlight four facts based on anonymous aggregated data collected from 50m sessions that were exposed to product recommendations.

Keeping these four facts in mind can really make a difference in generating what can be up to a third of your site’s revenue.

Consumers doubt the value of online personalisation: study

Personalisation is considered to be an extremely effective way of driving sales and conversions, with 94% of businesses stating that personalisation ‘is critical to current and future success.’

In fact data included in our Realities of Online Personalisation report shows that for two-thirds (66%) of client-side respondents, both improved business performance and customer experience are the main drivers for personalising the website experience.

However two new studies suggest that consumers aren’t blown away by personalised experiences online, or at least that’s their perception.

In a global consumer survey by Adobe 42% of respondents said they were ‘neutral’ about the value of personalised product and service recommendations online, which is as good as saying they either don’t care or aren’t aware of it.

Six basic tips for improving homepage product banners

Providing tailored product recommendations is a proven way of boosting online sales, with two-thirds of companies (66%) stating that personalisation improves both customer experience and business performance.

Speaking at a Screen Pages ecommerce event recently, Emailvision personalisation director Neil Hamilton ran through some best practice tips for how to create effective homepage product recommendation banners.

The effectiveness of these blocks can be improved using personalisation, whereby the products shown are specifically tailored to the customer based on their past on-site behaviour.

Our new Realities of Personalisation Report, published in association with Monetate, found that just 30% of businesses currently personalise their websites based on a visitor’s previous behaviour, so a majority of businesses are yet to implement the technology.

11 useful examples of copywriting for product recommendations

All ecommerce sites could benefit from having product recommendations, with research showing that they can potentially increase revenue by up to 300%, improve conversions by 150% and help boost the average order value by 50%.

However, the precise format varies from site to site and should be tested to make sure it’s converting the maximum number of customers.

The copywriting needs to fit with the brand identity and it’s also important to strike an emotive chord and pique the customer’s interest.

This isn’t an easy task considering the fact that you generally only have room for about three or four words, but there is still a great deal you can do with the limited space.

Just 13% of businesses implement personalisation on mobile

Personalisation is widely seen as vital to the success of online businesses, yet new research shows that companies are some way off delivering cross-channel personalised experiences.

The Econsultancy/Monetate Realities of Personalisation Report shows that while 43% of companies currently deliver a personalised experience on desktop this figure falls to just 14% on tablet and 13% on mobile.

For both devices more than half of respondents (54%) stated that they plan to adopt personalisation in the next 12 months, but this needs to be treated with caution as the road to hell is paved with good intentions.

It also means that around a third of businesses have no plans to implement the technology.

Six different approaches to online product recommendations

You need only take a look at Amazon’s homepage to understand the importance of product recommendations to ecommerce.

One report suggests that 70% of is devoted to recommendations, so it’s obvious that they play a vital role in exposing customers to new products and increasing sales.

In fact, according to an infographic from Monetate recommendations can increase revenue by up to 300%, improve conversions by 150% and help boost the average order value by 50%.

Obviously these figures will vary wildly depending on initial benchmarks and how extensively recommendations are used across the site, but the evidence is still too compelling to be ignored.