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Tips to Increase Your Revenue With Recommender Systems

4 min read

Personalization requires using consumer psychology, strategies, multi-channel messaging and technologies to reach users at the right time, across the right platform, and with the right language.
The researchers note that recommender systems have been reported to increase sales and impact the economical behaviour for individuals. For example: More than 35% of what consumers purchase on Amazon and more than 60% of what they watch on Netflix result from recommendations.

If you are an e-commerce business owner, here are several ways to add recommender systems in your website and application in order to improve sales and impact the economical behaviour of your customers:


Similar Products

It is the most common way of recommending. It is all about recommending the items that are visually similar to the viewed item. This enables the cusotmer to look at similar items with different details.



Cross-Selling

Cross-selling is a method that encourages a buyer to augment their first purchase with complementary items. Consider items that naturally complement one another, such as coffee and donuts, to cross-sell efficiently. What is the coffee's value to the donuts you're selling? Pay close attention to the pricing points of the things you combine, as cross-sell products are often comparable in price rather than vastly different.



Previously Viewed Items

Shopping paths can be very different. Since some customers leave and return several times, it comes in very handy to remind buyers of their shopping history in order to restart from some left points in their shopping journey.



Image Search

By adding such a search option on your store, you enable users to scan the code and take the image of the product to directly search on the store. This improves the chances of navigating to a similar product that you are looking for.
Recommender systems are used in e-commerce to guide consumers through. Past research has shown that these systems affect consumers’ choices and generally boost sales. There are many ways to provide personalization in e-commerce experience. New Epsilon research states that 80% of consumers are more likely to purchase from brands that offer a personalized experience.


References:
https://www.forbes.com/sites/chuckcohn/2015/05/15/a-beginners-guide-to-upselling-and-cross-selling/?sh=b18049f2912e
https://evincedev.com/blog/ecommerce-personalization/