Top 3 Benefits of Product Recommendations in eCommerce Websites

Did you know that about 75% of consumers are more likely to buy based on product recommendations? Given the stats, it is evident that there is a substantial financial benefit of the product recommendation engine. 

Also, as a matter of fact, Switzerland is the 21st largest eCommerce market in 2021. That justifies the spiking demand for these algorithms and an eCommerce web development company in Switzerland to incorporate them. 

Moving ahead, let us dive into some compelling benefits of product recommendation engines for eCommerce stores.

According to research, 63% of Swiss online shoppers report cancelling shopping if they cannot find a desired product on the eCommerce website. These prospective visitors are unlikely to return after a poor experience at your website. It is, therefore, necessary for any business or a website development company in Switzerland to make the online shopping experience easier for their visitors. Here, product recommendations come in handy. Although it is observed that only 7% of visits are due to product recommendation engines but it accounts for revenue of 26%. 

Hence, brands may enhance the experience of their customers and encourage loyalty by making it quicker and easier for consumers to find the things they love. More than half of users are more inclined to visit a website that offers product recommendations again.

The best case study for this is Netflix. Their movie recommendation keeps their subscribers engaged in their OTT platform. The company says that the user either finds something that interests them or the risk of abandonment is substantial. 

The same applies to eCommerce websites. Retailers gain high customer engagement when they display pertinent products to them. Not only does it extends the time spent on the site but also reduces bounce rates helping them in ranking higher in the SERPs. It is been studied, that shoppers provided with product recommendations are more likely to retain, revisit and avoid price comparisons.

An Accenture survey suggests that more than 90% of consumers prefer to purchase with companies who remember them upon revisit and make relevant recommendations. The direct effect of it reflects in revenue that we shall discuss in the next point.

Product recommendation not only retains visitors but increases cart value. Amazon is a great example to understand this. You often see deals, product bundling, and other recommendations that compel you to add more items to your cart which in turn increases sales and revenue. It also reduces the ratio of shopping cart abandonment which also impacts the revenue earned. 

Finally, though there are many direct and indirect benefits of product recommendation engines in eCommerce sites, having them placed in the right areas on the website will ensure their effectiveness. A sound web development company in Switzerland may be able to suggest to you a product recommendation plan upon analyzing your website or before developing your website from scratch. 

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