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Benefits of a Recommendation Engine

Benefits of a Recommendation Engine

Wondering why you should bother with a personalization engine? Here are ten reasons you absolutely want to care about technology like this.

There are many uses for a recommendation engine on an ecommerce website. It can generate product recommendations, create personalized emails and merchandise products on your site. This software-as-a-service platform has many benefits for an ecommerce business.

Recommendation System Benefits

Here are a few things a recommendation system can do for your business.

Drive Traffic

A recommendation engine can bring traffic to your site. It achieves this with personalized email messages and targeted blasts.

Deliver Relevant Content

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

Engage Shoppers

Shoppers become more engaged in the site when personalized product recommendations are made. They are able to delve more deeply into the product line without having to perform search after search.

Convert Shoppers to Customers

Converting shoppers into customers takes a special touch. Personalized interactions from a recommendation engine show your customer that he is valued as an individual. In turn, this engenders his loyalty.

Increase Average Order Value

Average order values typically go up when a recommendation engine in uses to display personalized options. Advanced metrics and reporting can definitively show the effectiveness of a campaign.

Increase Number of Items per Order

In addition to the average order value rising, the number of items per order also typically rises when a recommendation engine is employed. When the customer is shown options that meet his interest, he is more likely to add items to his purchase.

Control Merchandising and Inventory Rules

A recommendation engine can add your own marketing and inventory control directives to the customer’s profile to feature products that are promotionally prices, on clearance or overstocked. It gives you’re the flexibility to control what items are highlighted by the recommendation system.

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 of your IT staff and your budget.

Provide Reports

Providing reports is an integral part of a personalization system. Giving the client accurate and up to the minute reporting allows him to make solid decisions about his site and the direction of a campaign.

Offer Advice and Direction

An experienced provider can offer advice on how to use the data collected and reported to the client. Acting as a partner and a consultant, the provider should have the know-how to help guide the ecommerce site to a prosperous future.