What is Product Recommendation System and its Importance in eCommerce

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With the rapid growth of eCommerce stores, customers are becoming more accustomed to enjoying a personalized shopping experience.

Most successful eCommerce businesses know that in order to gain their customer’s trust and build a loyal user base, they have to fulfill their expectations. So they do that by using the product recommendation system on their eCommerce websites.

So what exactly is the product recommendation system? And how do eCommerce businesses benefit from it? In this article, we’ll talk about it in detail and see why businesses should use it?

Let’s get started.

What is a Product Recommendation System?

Product recommendation is a filtering system in which businesses predict and showcase products that users would be interested in buying. In displaying these recommendations, the system considers various factors like –

    the user’s browsing history
    their latest viewed products
    trending products
    products that are frequently brought together
    user’s previous purchase history

Looking at these factors makes it easier to recommend products that the user will be actually interested in buying. The idea basically is to improve the user’s overall shopping experience on the website.

But is that the only reason why you should use product recommendation systems for your eCommerce website? Let’s find out.

Benefits of Product Recommendation System for eCommerce

There are several amazing benefits of implementing a product recommendation system for your eCommerce store.

But that’s not the only advantage of using a product recommendation system for your eCommerce store. Let’s check out some of the other benefits of using it.

1. Cross-sell and Upsell

Using the product recommendation strategy on your eCommerce is a wonderful way to cross-sell and upsell your products. Sometimes your users might not even know about certain products that you’re selling on your website.

By offering customized recommendations to your users, you can help them discover products that they were so long unaware of.

2. Boost Sales

Product recommendation systems use AI and machine learning to understand the browsing behavior of your users. In doing so, it will also analyze the products that they previously brought or viewed.

This gives the system a fair idea about the likes, dislikes, demands, and wants of the user. It then utilizes this information to recommend products to them. These are products that the user is already interested in. So by recommending them at the right time and in the right way, you can easily boost your sales and increase your revenue.

3. Increased Customer Satisfaction

As mentioned before, with the rising number of eCommerce stores, the expectation of online shoppers for a personalized shopping experience has increased as well.

Product recommendations let you offer a customized recommendation to your users and help you fulfill those expectations. By doing that, you can improve the overall user experience on your website. This improves customer satisfaction which is one of the important factors for your overall success.

4. Builds Loyalty

Using product recommendations on your website is a very good way to build customer loyalty. As mentioned in the above point, offering product recommendations to your users helps boost customer satisfaction.

When people love your business, they are more likely to come back to your site again for future purchases. And not just that, happy customers will also promote your business through word-of-mouth. And no marketing strategy can be better than that. This will attract more customers and help you achieve your goals faster.

5. Boosts User Engagement

When people hear about your business from others, they will definitely want to check your site. When they land on your website, they will definitely explore it to know about your products and services.

When they do that, your website engagement increases, and your bounce rate decrease too. This is one of the essential factors that Google checks when ranking your website in Google.

When people stay on your website for longer, Google considers that people are enjoying your site. People will enjoy the site when they find relevant content on it. So Google considers such sites to be helpful for users and ranks them in the top search results.

These are just a few benefits of using product recommendation strategies on your website. However, it is to be noted that product recommendation works best when the recommendations are relevant to their users.

So always make sure that your suggestions align with your user’s needs and demands. You can easily do that by analyzing your user data before jumping into making these recommendations.

We hope you like the post. Do let us know why you like recommending products to your users. We would love to hear from you.

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