The online experience is always evolving and companies are constantly searching for new ways to capture the attention of their customers. Recommendation systems were created to analyze data in an effort to provide meaningful suggestions. Online services have benefited from accurate recommendation systems and their ability to personalize the online experience.
Why is personalization important? It helps a consumer find products and services that cater to their needs and are likely to buy. Research shows that consumers like to receive recommendations and that meaningful recommendations increase consumers’ engagement with your website, which helps businesses retain them as repeat visitors. This entire process leads to an increase in website visits and results in sales growth.
CONSUMERS LIKE TO RECEIVE RECOMMENDATIONS
While some consumers pride themselves on their ability to hunt deals and find relevant products and services on their own, they are the minority. In reality, consumers want to receive recommendations and want to be told what to buy. Time is money and convenience is an essential part of the online experience.
A consumer poll conducted by Accenture revealed that 60 percent of consumers want real-time promotions and offers. Recommendation systems collect a user’s choices and produce accurate suggestions that are likely to generate sales. For example, if a user purchases an iPhone, a simple recommendation system may suggest accessories to the consumer, but a more intuitive recommendation system may suggest that they purchase an Apple Watch, an iPad, and other related devices. The trick is to provide recommendations that personalize the shopping experience and that a customer is likely to consider.
INCREASED CUSTOMER ENGAGEMENT AND RETENTION
It’s no secret that many consumers stay on a website for a matter of seconds. Finding a way to engage them is crucial for the survival of any online business. By employing a recommendation system, a user’s past choices can be analyzed in real-time and used to provide meaningful recommendations. In fact, data suggests that over 70 percent of consumers prefer a platform that offers a personalized experience.
By offering a customized layer of personalization, a company will increase engagement with their consumers which will ultimately result in consumers staying on a business’ website longer. The more meaningful choices a consumer is presented with, the more likely they are to do business with you.
INCREASE IN WEBSITE VISITS
In the past, marketing focused on brand loyalty and traditional tactics that convinced a consumer they needed to have the latest product. While these tactics are still valid, specific industries are implementing new systems that offer a personalized shopping experience. Users have unique needs and they want them to be satisfied on a personal level.
Using Amazon as an example, if 100 people were to visit the landing page, they would all receive a personalized landing page that is tailored to them based on past choices, stored data, and other relevant information.
By offering a personal landing page to consumers, a business can increase their page hits through the process of behavioral targeting. 52 percent of digital marketers view behavioral targeting as an essential part of the marketing industry and a focal point in their online strategy. Consumers are unique and every single one of them is only concerned with seeing the items that appeal to their interests.
ADDITIONAL REVENUE GENERATION
The goal of any business is to make money. Recommendation systems are designed for upselling and generating additional revenue; when a consumer is browsing a specific product, a recommendation system will suggests other products that are deemed relevant through the engine’s algorithm.
However, a recommendation system doesn’t always recommend related items. For example, one of Amazon’s biggest money makers is the last minute section that it tacks onto normal transactions. Consumers are offered everyday items like tape, pencils, pens, paper, and other products at a discounted rate. In most cases, consumers wouldn’t have thought to buy those items, but the simple recommendation was enough to convince them to add additional items to their cart, generating revenue for Amazon.
It is in the best interest of businesses to employ a high-quality recommendation system like the one created by Trouvus. A recommendation system provides your website with a personality of its own and helps you cater a personalized experience to all of your customers. Modern digital marketing trends have recognized how essential recommendation systems are to the core functionality of a website. Take advantage of this innovative technology and help your business grow to the next level.
If you have any questions about the technology or how it can apply to your business, please feel free to contact us here at Trouvus.