There are ways of optimizing your web service business which might give a significant boost to revenue growth, increase sales per order and improve user’s engagement. Some of the commonly used methods are targeted marketing, improving customer service, and delivering better quality products. However, many of the digital business sites are not aware of the fact that integration of a personalized recommendations solution to their sites – be it video on demand or a regular e-shop – can have an eye-opening impact on the growth of their businesses.
Most upscale retailers know that personalized attention works. Imagine that you have come to your favourite high-end apparel shop. A sales person will greet you with a smile on her face. She might inquire if you need any help. Depending on your answer and subtle cues, she will assist you or leave you politely. If you require help she will give you detail information about the product you are looking for, show you the inventories on display and help you in finding the exact product with the attributes you are looking for. She has the knowledge of the items, their characteristics, what other buyers have purchased and what will best suit you based on your need.
A customer’s shopping experience does not have to be any different online. Thanks to the new technologies grounded on latest advances in artificial intelligence and data mining, a personalized recommendations solution can provide a shopping experience at par or even better than a conventional salesperson. What is a recommendations solution anyway? Integrated to the website, a recommender engine or recommendations solution is meant to produce suggestions using predictive analyses from the database of the products, services and users’ previous choices.
The user is expected to like the suggestions generated by the system. Done right, the suggestions will be appealing to the users’ taste, and the users will take advantage of those recommendations actively. It is considered that in today’s extremely competitive e-commerce field, a recommendations solution is a vital tool to web service’s success. But how does a recommendations solution bring values to the e-commerce platforms? Here, we will look into one of the critical aspects that all e-commerce businesses consider highly relevant to their top and bottom lines – an improved user engagement. User engagement refers to the unique experience that a user encounters while interacting with your web services and the frequencies and length of these interactions. Having the right items that the users might need and like are necessary for good user engagement but not nearly enough.
With an overwhelming number of items and content available on most of the sites, it is also imperative that the users get access to the right item or content as per their personal taste and desire. Recommendations solutions are capable of solving this crucial issue. Better user engagement helps a website to boost revenue in multiple ways: a satisfied customer becomes loyal to the site and gets back to it over and over again. This means, for example, growing membership renewal for a web service with subscription based business model. Video and entertainment sites also notice significant growth of viewing once a recommendations solution was implemented. An e-commerce site receives positive results from a better user engagement in the form of more visitors becoming customers and increase of sales to the same customer.
This stems from the fact that a highly relevant suggestion of an item has more chance to be bought by a customer. Studies show that buyers are more prone to purchase a product or service suggested by a recommendations solution. Recommendations solutions are changing the digital business landscape rapidly. They are no longer an option or mere auxiliary service. On the contrary, they have become absolutely necessary for any type of online sites where customer retention and engagement is imperative for the web services success.