Product Recommendation | 4 mins read

7 Product Recommendation Strategies to Boost Sales and Retention

7 product recommendation strategies to boost sales and retention
Hanh Truong

By Hanh Truong

With the rise of online shopping, retailers have the opportunity to employ product recommendation strategies to foster a personalized customer experience.

Despite the lack of face-to-face interaction between shoppers and employees online, robust and effective recommendation tactics will ensure each customer finds what they need and makes a purchase.

What are Product Recommendations?

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Product recommendations are strategies to personalize the online shopping experience for customers. Retailers will often use machine learning to gather data about their customers' characteristics, demographics, and browsing behavior patterns, and will utilize these metrics to recommend products or services that they offer.

Retail websites, for instance, will utilize these tactics on their checkout page by recommending accessories or similar items at the bottom or side of the webpage.

Successful strategies for product recommendations can help drive a business's profits. In fact, according to research by Barilliance, customers, on average, found that 12% of their overall purchases came from items that were recommended to them. Additionally, product recommendations increased conversion rates by 30%.

By seeing similar or complementary items that align with their interests and current shopping cart, customers are prompted to add to their purchases, effectively increasing the company's average order value.

Creating a personalized experience for customers will also help businesses secure their loyalty, as shoppers are more likely to frequent a brand that understands their product or service preferences.

7 Best Product Recommendation Tactics

Companies can suggest products to consumers throughout their shopping journey, whether they first arrive at the retail website or through promotional emails. Some of the best practices that brands have been employing include the following.

1. Showcase Best Sellers

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For this method, business teams need to focus on tracking their most popular and fast-moving merchandise and highlight those items on their webpage. By showcasing the most profitable products, retailers can experience more valuable sales.

Many retailers will promote their best goods by adding a small label to the product's thumbnail or listing. Oftentimes, there will be a page dedicated to best-selling items so that it is easier for shoppers to browse.

Generally, consumers want to follow the latest trends, such as in fashion and technology. Businesses can encourage customers by showing products that are currently popular on their homepage.

The clothing store Asos, for example, has a page dedicated to New-Season Styles for online browsers who want to purchase a new wardrobe for the upcoming season.

3. Promote Discounts and Sales

Many customers are more likely to make a purchase, knowing that they are getting deals and saving money. Retailers can increase their volume of sales by having regular discounts and promotions.

This will be helpful for encouraging shoppers who are hesitant about buying an item. Large-scale companies have been utilizing this tactic to their advantage, such as Amazon, in which the first item users see when they enter the website or mobile app is the Deal of the Day.

4. Highlight Highest Rated Items

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Products that are highly rated by customers generally have a higher volume of sales, in contrast to items that do not have reviews.

Online businesses should suggest items that have good ratings and display them prominently on the website. Doing so will help consumers compare and choose the best product among those that are similar.

Best Buy, for instance, uses a 5-star rating scale and the product's ranking is located underneath the item's name. This enables people to quickly distinguish the quality of an item from other goods, as well as easily differentiate their number of reviews and prices.

5. Have Location-Based Suggestions

With the latest tracking technology, companies can have better insight into the general location that their online shoppers are visiting from. Businesses can utilize this information by suggesting to customers products that people in their region or city are also buying.

This could generate interest and also inform consumers about whether or not they should stock up on specific items as well.

Walmart has implemented this method by showing online visitors goods that are currently popular in their area. For example, if someone was in Los Angeles during a rainy week, they may find umbrellas and raingear under the Trending near Los Angeles tab.

6. Use Browsing History to Generate Recommendations

Businesses should employ collaborative filtering in their product recommendation system. This is a method of using an algorithm to monitor user preferences and on-site behavior to suggest similar or complementary items to what the shopper was previously looking at.

This practice ensures that the retailer fosters a personal experience for their consumers and that all recommendations align with their interests.

7. Utilize Purchasing History

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By understanding what products customers have bought in the past, companies can gain insight into what they like. This will help business teams filter through their large volumes of inventory and pick out specific items they know will appeal to their customer.