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Main benefits of the product recommendation system for Magento 2 store

Main benefits of the product recommendation system for Magento 2 store

The global eCommerce industry is growing every year. It’s estimated to reach $6.54 trillion by the end of 2022. It means that with each coming year brands have to imply more and more tactics to attract customers attention and increase sales. 

Product recommendations are one of the most effective ways to ensure a constant repeat business flow. They are widely used by such eCommerce giants as Amazon, eBay, Target, etc. So in this article we’ll try to figure out why product recommendations are beneficial for any eCommerce business and what product recommendation engine you can implement into your Magento 2 store.

The global eCommerce industry is growing every year. It’s estimated to reach $6.54 trillion by the end of 2022. It means that with each coming year brands have to imply more and more tactics to attract customers attention and increase sales. 

Product recommendations are one of the most effective ways to ensure a constant repeat business flow. They are widely used by such eCommerce giants as Amazon, eBay, Target, etc. So in this article we’ll try to figure out why product recommendations are beneficial for any eCommerce business and what product recommendation engine you can implement into your Magento 2 store.

What is a product recommendation engine?

Product recommendation engine is a solution, which allows merchants to offer related products to customers in real time. Being a product filtering system, product engines are usually based on preset rules aimed at seeking customer preferences and promoting specific products. 

There are three main types of recommendation engines:

  1. Collaborative filtering - a recommendation algorithm based on analyzing customer’s behavior, activities or purchases and predicting what products they will like with the rely on other customers with similar interests and tastes.
  2. Content filtering - a recommendation algorithm based on the previous user choices and related products with similar keywords. In this case, the engine tries to recommend products similar to the ones purchased or viewed in the past.
  3. Hybrid recommendation is a combination of collaborative and content filterings. It is based on past purchase comparison and searching habits of similar users at the same time. This type of recommendation is famous not only among online stores, but also among streaming platforms like Netflix.

Benefits of product recommendations

As mentioned above, recommendation engines are popular among online stores, because they give a lot of benefits to any eCommerce business. Here are some of the benefits you’ll have with product recommendations:

1. Boost sales

One of the main goals and benefits of product recommendation engines is to drive a high conversion rate. There are different recommendation engines: related products, who bought this also bought, who viewed this also viewed, best sellers, etc. All of them are proven to increase conversions by giving customers a wider awareness of the product they may like and need. Among the most successful stores nowadays is Amazon, but did you know that recommendation engines have a direct impact on their sales? According to the recent research about 30% of their revenue is made thanks to effective recommendation algorithms they use. So this investment is totally worth it.

2. Increase AOV

The recommendation engines, both upsell and cross-sell related, aim at increasing average order value. Thus, while upselling to customers, they can be offered comparable products with higher prices. Cross-selling engines in their end suggest customers to buy complementary products, in this way increasing order value.

3. Increase customer satisfaction

Customer satisfaction is the key to high retention rate. With product recommendation engines shoppers can find the best option for them if they haven’t found it through catalog browsing. Besides, personalized product recommendations increase shopper engagement and provide a shopping experience similar to brick-and-mortar stores.

4. Improve navigation and discovery

People like to see the block with items they may like. It helps them save time on catalog browsing and find the wanted product easily. Product recommendation engines store the data collected and use it to navigate shoppers through their whole journey on your webstore to their ideal purchase.

5. Provide performance analytics for promotional strategies

Good recommendation engines provide reports, so you can have relevant data for making data-driven decisions on the direction of your promotional campaign. It is a powerful tool to drive and control sales with recommendation engines.

Conclusion

Product recommendation engines are powerful marketing tools to boost sales, increase customer’s satisfaction and engagement. If you’re looking for a product recommendation engine for your Magento 2 store, you can try Automatic Related Products for Magento 2 by Aheadworks

With smart product suggestions based on flexible rules and shopping behavior you can run effective marketing campaigns and generate spontaneous purchases. The extension allows you to create an unlimited number of recommendation blocks, define the preferable layout, specify block content view and sort products within the block by price, date or popularity. 

Also you can track and analyze related products' block performance through key metrics such as views, clicks, CTRs. The integration with Customers Segmentation for Magento 2 allows you to create more targeted blocks for better promo results. 

Install Automatic Related Products for Magento 2 and enjoy all the benefits one of the best product recommendation systems on Magento Marketplace can bring.