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How Product Recommendation Engines Can Boost Your eCommerce Revenue?


In today’s digital landscape, user experience remains the key to increased customer engagement and a major influence in their buying decision. It’s crucial for US retailers to keep evolving and stay updated with the latest technological strategies that help in boosting their conversions and brand visibility.

While the user experience is a combination of several metrics, the goal is to help customers find their product and ease their shopping journey.

For this reason, understanding customer expectations and offering them product recommendations that suits their best interest improves the purchase journey and helps bring the buyer’s attention back to products they desire.

Top eCommerce giants like Amazon use this product recommendation strategy to understand their customers better and to provide them with suggestions based on their shopping or browsing history.

Did you know that 35% of Amazon’s revenue is generated by their recommendation engine?

What are Product Recommendation Engines?

Product recommendation engines track user behavior on website pages and email campaigns. Using data filtering processes and algorithms they then can recommend relevant or similar products to the customer.

Fueled by the significant increase in the user-generated data and the growing number of online shoppers, recommendation engines can map, search and identify the products to match the customer’s taste and preferences quickly.

Benefits Of Production Recommendation Engines

1. Personalized Shopping Experience

Shopping has become increasingly dynamic thereby rising expectations of tech-savvy customers. Buyers compare prices in physical stores and then frequently, buy them online. All said and done, personalization plays a key role in converting visitors to customers. When customers find your eCommerce store experience tailor-made to their preferences, they love it.

According to Forrester 73% of customers prefer a personalized shopping experience. An intelligent product recommendation engine tracks your site visitors and captures their behavior to suggest highly relevant products. Inspired by a customer’s browsing history or recently bought items, the recommendation engine predicts what could interest them or possibly be their next purchase. For instance, customers who recently bought a laptop may be looking for a laptop bag or other accessories. This is the perfect opportunity to up-sell or cross-sell the items with combinations that will grab customers’ attention instantly.

2. Increased Conversion Rates

When product recommendations based on real-time data appear on home pages, product pages, search results, and personal notifications, shoppers are more likely to buy. This is because they easily find exactly what they want on your site at desired prices. In one case study recommending products in the shopping cart based on a user’s purchasing or browsing behavior resulted in a 915% increase in conversion rate.

Similarly, there was a 474% increase in recommended products displayed on category pages, 411% on product pages, 307% on order confirmation pages, 248% on home pages and 192% on search results pages.

These numbers show how well product recommendations can directly impact your conversion rates and help you lure customers to make more purchases.

3. Increased Number Of Cart Products

In addition to improving conversion rates and the shopping experience, product recommendation brings about a huge impact on the Average Order Value and the number of products per transaction. AOV is one of the most important metrics and is an important KPI to track. When relevant search results are shown to the shoppers and when their cart value increases, the recommendation engine is always learning. By studying these customer’s buying patterns, it can make further improvements.

4. Improved Customer Engagement

When customers find what they need, they end up spending more time on your website and engaging with the products. Improving customer journeys by linking products through further recommendations in the name of ‘complementary /alternative items’, ‘what customers also bought’ and ‘other brands that most customers bought from’ along with other relevant product suggestions will increase your customer’s interest to stay on your site and purchase more products.

Choosing Your Product Recommendation Tool

Product recommendations are one of the most powerful tools that online marketers can use today. In some cases, they deliver more than 5X the ROI.

Retailers need a roadmap that helps them increase sales. By using cost-effective proven quality tools like. TargetBay, they get a clear vision of the future. TargetBay is a fully integrated revenue generation SaaS product that includes a recommendation engine. We guarantee it and the other tools will improve your revenue.

As mentioned personalized product recommendation is one of four of Targetbay’s fully integrated toolsets

With TargetBay’s recommendation engine, you can,

  1. Simply design your recommendation strip and generate the code
  2. Display product recommendation anywhere and everywhere
  3. Take complete control of your campaign through intuitive graphs
  4. Monitor and optimize campaign performances
  5. Integrate reviews and recommendations

Not sure how to go about it? Give us a call today and we’ll help you figure out your perfect eCommerce solution.

Picture of Sharon Paul

Sharon Paul

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