What is Product Recommendation in E-commerce?
Product recommendation in e-commerce refers to recommending relevant products to customers based on browsing behavior, purchase history, and preferences.
With advanced algorithms and data analysis, e-commerce platforms can display personalized recommendations, enhancing the shopping experience and increasing the likelihood of additional purchases.
These recommendations can appear as related products, frequently bought together items, or personalized suggestions, helping customers discover products they may be interested in but might not have found otherwise.
Why is Product Recommendation in E-commerce Effective?
- Personalized Shopping Experience: Offers tailored suggestions based on customer behavior, making shoppers feel understood and valued with e-commerce personalization examples.
- Increased Average Order Value: Encourages additional purchases by suggesting complementary products, boosting overall sales.
- Improved Customer Satisfaction: Presents relevant products, creating a more satisfying shopping experience and fostering repeat business.
- Higher Conversion Rates: Guides customers to products they might not find on their own, speeding up decision-making and increasing sales.
- Efficient Browsing: Reduces search time by quickly presenting relevant options, making it easier for customers to find desired products.
- Leveraging Data Insights: Uses customer data to identify trends and buying patterns, helping businesses make informed inventory and marketing decisions.
- Enhanced Engagement: Keeps customers interacting with the platform through relevant product suggestions, increasing purchase likelihood.
- Competitive Advantage: Differentiates the e-commerce platform by providing a superior user experience, making it more attractive compared to competitors.
Now, it’s time to have a look at the importance of e-commerce product recommendations with top statistics that we gathered:
→ 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations based on the Accenture’s Pulse Survey.
→ According to the Salesforce’s personalized product recommendation article, shoppers who engage with product recommendations are nearly twice as likely to return to the site. 37% of those who clicked on recommendations during their first visit returned, compared to 19% of those who didn’t.
→ Shoppers who clicked on recommendations are 4.5 times more likely to add items to their cart and complete a purchase.according to the Clerk.io’s product recommendation statistics.
→ According to the Twilio Segment’s The State of Personalization 2021, 49% of consumers purchased a product they did not initially intend to buy after receiving a personalized recommendation.
How Do E-commerce Product Recommendation Engines Work?
E-commerce product recommendation engines are sophisticated systems that analyze data to suggest products tailored to individual users.
Here’s how they typically work:
1. Data Collection
The process begins with collecting vast amounts of data from various sources. This includes:
- User Behavior: Tracking how users interact with the website, including clicks, views, search queries, and time spent on different pages.
- Purchase History: Analyzing past purchases to understand preferences and buying patterns.
- Demographic Information: Using age, gender, location, and other demographic data to tailor recommendations.
- Contextual Data: Considering the current session’s context, such as the device used, time of day, and referrer source.
2. Data Processing and Analysis
The collected data is then processed and analyzed using complex algorithms and machine learning models.
These models identify patterns and correlations in the data to predict what products a user might be interested in. The primary techniques used include:
- Collaborative Filtering: This method recommends products based on the behavior of similar users. For example, if users A and B have similar purchase histories, products bought by user A might be recommended to user B.
- Content-Based Filtering: This approach recommends products similar to ones the user has interacted with in the past, focusing on product attributes such as category, brand, and features.
- Hybrid Models: Combining collaborative and content-based filtering to leverage the strengths of both methods and provide more accurate recommendations.
3. Generating Recommendations
Once the data is analyzed, the recommendation engine generates personalized suggestions for each user.
These recommendations can be displayed in various places on the e-commerce site, including:
- Homepage: Highlighting popular or personalized products right when users land on the site.
- Product Pages: Showing related or complementary products to the one currently viewed.
- Cart and Checkout Pages: Suggesting additional items that the user might be interested in buying along with their current selection.
- Email Campaigns: Sending personalized product recommendations to users based on their browsing and purchase history.
8 Common Types of Product Recommendation in E-commerce
Product recommendations in e-commerce can significantly enhance the shopping experience by offering personalized suggestions to customers.
Here are some common types of e-commerce product recommendations:
1. Personalized Recommendations
These suggestions are tailored to individual users based on their browsing history, past purchases, and personal preferences. By analyzing user behavior, e-commerce platforms can predict what products a customer might be interested in and display those items prominently as a customer win-back strategy.
2. Frequently Bought Together
This type of recommendation suggests products that are commonly purchased alongside the item the customer is viewing. It helps cross-selling by encouraging customers to buy complementary products, thereby increasing the average order value.
3. Related Products
Related product recommendations show items that are similar or complementary to the product a customer is viewing. This helps customers explore other options and find products that meet their needs.
4. Top Sellers
Highlighting top-selling products can attract customers by showcasing popular and trending items. This type of recommendation leverages social proof, as customers are often inclined to trust and buy products that others have purchased frequently.
5. New Arrivals
Featuring the latest products can keep customers engaged and excited about new offerings. New arrival recommendations are particularly effective for returning customers who want to stay updated on the newest trends and products.
6. Customer Reviews Based Recommendations
These recommendations are based on products that have received high ratings and positive reviews from other customers. By showcasing well-reviewed items, e-commerce platforms can build trust and influence purchasing decisions.
7. Trending Products
Trending product recommendations highlight items that are currently popular or in demand. This can create a sense of urgency and encourage customers to make a purchase before the product sells out.
8. Seasonal Recommendations
These are tailored to specific times of the year, such as holidays or special events. Seasonal recommendations help in promoting relevant products that align with the current season or upcoming events.
7 E-commerce Product Recommendation Tips with Examples
Effective product recommendations in e-commerce can significantly enhance user experience and boost sales.
Here are some actionable tips to make the most of your product recommendation strategy with their examples from real brands:
1. Segment Your Audience - Amazon
Divide your customers into segments based on their interests, purchasing behavior, and demographics. Tailor recommendations to each segment to make them more relevant and effective.
Amazon’s homepage literally gives all the details about e-commerce and sales, along with product recommendations.
The header gives different topics to address the visitors to the related field.
Plus, the cards change depending on the season and specific needs, like a school-season special for a while.
However, when the season changes, there may be campaigns related to the season, and product recommendations may change accordingly.
2. Make Use of Reviews for Increasing Product Recommendation - Olipop
Olipop has a page related to reviews to display that its products are recommended and approved by its consumers.
Sharing social proof elements for recommending a product in e-commerce can increase the trust and credibility of the products. Therefore, it leads to boosted sales.
Also, as we put into words when brands share positive reviews and high ratings of a product, these recommendations help the visitors’ purchasing decision affirmatively as well.
3. Use Visuals and Clear CTAs - Velasca
Ensure your product recommendations are visually appealing and include clear calls to action (CTAs). Attractive images and compelling CTAs can encourage customers to explore and purchase recommended items.
On Velasca's homepage, interesting elements show the campaign details, and the brand wants to lead visitors to what they are looking for.
Velasca welcomes visitors with a simple but effective method, using a note and sharing the most related creations.
Instead of recommending a product directly, the brand presents the collections and wants to show what they have for their visitors.
4. Use Contextual Recommendations - Valori Jewels
Offer recommendations based on the context of the customer's common activity. For example, suggest accessories for a product they are viewing, similar items to those in their cart, or the most common frequently bought items.
Valori Jewels is also another brand that uses the homepage as their product recommendation page in their e-commerce store.
There are various categories of jewels on the homepage that can lead potential customers to the target.
The moving cards recommend products with their prices, so it is possible to find budget-friendly options as well.
5. Highlight Best Sellers and Trending Items- Rare Beauty
Showcase popular products and trending items to attract customer interest. Social proof can influence purchasing decisions and drive more sales.
Rare Beauty loves using animated visual media on its homepage and when you scroll a little, there comes the Bestsellers as a product recommendation technique in e-commerce.
The products are shared with the alternatives, and the CTA is under the best seller's title to ease access.
The point is that the more products are shared, the more effective it is to display the details.
6. Personalize Email Recommendations- Etsy
Include personalized product recommendations in your email marketing campaigns. This can drive traffic back to your site and increase conversion rates. Here, you can examine the product recommendation email examples to get inspiration.
Etsy’s email for personalizing product recommendations with emails is a great way to reach customers and make them feel cared.
For the new month, there comes the new gift ideas. Also, there is a GIF that represents different options that Etsy provides.
Plus, the brand offers new shopping options and related links to direct the recipient to a wider source of information.
7. Enhance Post-Purchase Experience
Continuing to engage customers after a purchase by recommending products related to their recent purchase is a plus.
This can encourage repeat business and build long-term customer loyalty.
Nespresso is one of the best examples for this category because there is the part which they share “Our Recommendations”.
Scrolling the page, you can find other product recommendation options like it is a catalog to choose, which is great to address customers to purchase.
How to Recommend Products in E-commerce with Popups
There are some top cases in which you can increase your average order value with recommendation popups.
Thus, we want to share the simplest and most free ways to do that with popups.
→ You can share the buy one to get one free (BOGO) strategy and see the category directly with a popup.
→ For constant product recommendations and updates, you can collect leads and display your campaign.
→ It is possible to create FOMO with a popup while recommending products and adding it to your cart.
Conclusion
E-commerce product recommendations aren't just about suggesting items, they are about creating a unique and intuitive customer journey.
These recommendations will become more sophisticated, enhancing the shopping experience and driving success for online businesses.
Therefore, you should choose the best fit for the product recommendations in your e-commerce ventures.
Frequently Asked Questions
Can product recommendations be used in email marketing?
Yes, including personalized product recommendations in email marketing can drive traffic back to your site and increase conversion rates. Preferring email content to individual customer preferences makes communication more relevant and effective.
How can I optimize product recommendations for mobile users?
To optimize product recommendations for mobile users, ensure that your recommendation system is responsive and works seamlessly on smaller screens. Use clear images, concise text, and easy-to-tap CTAs to enhance the mobile shopping experience.
How do social proof-based recommendations work?
Social proof-based recommendations highlight products that are popular among other customers, such as top sellers or trending items. This leverages the psychological principle that people are influenced by the actions of others, encouraging them to follow suit and make a purchase.
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