The What, Why, and How of Product Recommendation Engines

Published on

August 25, 2022

Site Search & Product Discovery
Product Recommendation Engine by

No matter if you noticed it or not, you’ve experienced the power product recommendation engines hold. This is the technology that shows you other items you might like while you’re shopping online.

Product recommendation engines analyze data about shoppers to learn what types of offerings and products interest them. By serving personalized offers and products, businesses can drive sales.

In the past years, personalization has become king in the world of marketing.

According to a survey by Accenture, 91% of consumers are more likely to shop with brands that remember and provide relevant recommendations and offers.

This technology has become so paramount that the recommendation engine market is expected to reach $15.13 billion by 2026.

In this article, we will talk about what product recommendation engines are and why your e-commerce store needs one.

What Is a Product Recommendation Engine?

A product recommendation engine is a technology that uses artificial intelligence (AI) and machine learning to recommend a list of relevant products to users.

The goal of these engines is to increase the user’s demand and purchase as many items as possible.

Product recommendation engines analyze the following types of customer data:

  • Wish lists
  • Shopping carts
  • Recently viewed items
  • Search history
  • Preferences
  • Previous purchases
  • Browser history
  • Most-viewed products

Based on this information, product recommendation engines can display products that are relevant to the customer. The appearance of personalized recommendations is convenient for both e-commerce vendors and shoppers.

While e-commerce vendors will have the opportunity to showcase more products, shoppers won’t waste their time trying to find products that match their preferences.

Suggested read: How do recommendation engines for fashion eCommerce work?

Why Your E-commerce Store Needs a Recommendation Engine

In this section, we will talk about 3 ways recommendation engines are being used and why you need to get your own.

1/ Highly personalized product recommendations

The most well-known use case for this technology is similar product recommendations. Your product recommendations should be your focus, especially if you have an e-commerce website with a large number of products.

Similar recommended fashion items

2/ Related looks and inspiration galleries

Product recommendation engines can help users discover more of your products through social media images and user-generated content.

In addition, brands can use social media and product content to curate photos into inspiration galleries that are shoppable and instantly connect inspiration to purchase.

3/ Others also bought

Shoppers’ purchase decisions nowadays are influenced by online reviews and recommendations from friends and family.

A brand can replicate this type of social proof with recommendation engines. Depending on the item the user is viewing, you can display related products that customer with similar buyer behavior has liked or purchased.

How Product Recommendation Engines Can Benefit Your Fashion eCommerce Business

Below, we’re going to take a look at the benefits that product recommendation engines offer for fashion e-commerce businesses.

  • Boosting conversion rates – With the help of AI, e-commerce businesses can tailor category pages and search based on the actions of shoppers.

    Personalized offerings boost conversion rates because they make sure customers will find the products they’re looking for and need.

  • Generating more revenue – When the conversion rates are higher, the revenue increases as well. On average, product recommendations account for 31% of a store’s revenue.

  • Increase average order value – When customers show interest through their history and behavior, the search engine automatically offers them suggestions. This kind of relevancy gives a boost to the average order value (AOV) by exposing your customers to a higher level of products that can be appealing to them.

    Around 54% of retailers stated that product recommendations are a key driver for their AOV.
    The transactions become larger, and customers who might not have made a purchase find themselves entering their credit card information.
  • Delivers a consistent brand experience – A recommendation engine can be crucial in creating a consistent brand experience for your customers.

    It allows you to make the customer feel like they’re a part of an ongoing journey, instead of feeling like they’re starting anew everything they visit your website.

  • Improving the customer experience – Customers feel like they’re getting a tailored experience when you provide highly relevant products that match their interests and needs. Using this technology gives you a competitive edge over other businesses that haven’t started implementing AI yet.

Suggested read: Drive Higher Conversions With AI-Powered Product Recommendations

Key Takeaway

Now that you know what product recommendation engines are, why they’re important, and how they work, it’s time to take things into your own hands and improve your e-commerce business.

Pixyle’s product recommendation engine can help you increase conversions, improve customer retention, and boost sales.

Don’t miss out on the chance to give your customers what they really need, a seamless shopping experience!

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How to develop solutions that help shoppers find what they are looking for.

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How to develop solutions that help shoppers find what they are looking for.

Product Discovery

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