Tag Archives: recommendation engine
How Do You Target Your Customers at All Channel Touch Points to Individualize Their Shopping Experience? 5 Ways to Personalize Your Product Recommendations
Traditional in-store merchandisers frequently engage in new and refreshing ways to improve the shopping experience for their customers. With thousands of square feet of space, accessorized mannequins, and attractive kiosks and showcase displays, they’re afforded numerous luxuries in creating environments conducive to driving sales.
Since online retailers lack these merchandising luxuries, they leverage entirely different tools to enhance the customer experience, using key components of web-based shopping, such as search, navigation, and product recommendations. In the world of e-commerce, we’ve moved from merely selling to customers to empowering them. As a result, e-commerce directors and online merchandisers need to optimize the process by delivering what their customers want.
And what do customers want? Apparently, they want it all: the price and ease of point-and-click purchasing, the experience of in-store visits, the convenience of home delivery, and the service of boutique shopping. They don’t think about product exposure. They don’t focus on the mechanics of the shopping process. And they don’t care about an e-tailer’s internal complexity. They want simply to buy what they need in a way that’s suited to them.
At the same time, because customers’ needs aren’t static, their online shopping experiences shouldn’t be either. They increasingly expect a personal and highly relevant interaction with the retail websites they visit. Failing to get that, they’ll often go elsewhere. For online retailers and brand manufacturers of consumer packed goods (CPG) this creates the challenge of customer retention.
Here are five hints to maximize the power of PIM for tailored product recommendations
To meet the challenge of customer retention demands leveraging product information management (PIM) to target your customers. This means customizing on-line shopping by boosting the relevance of product recommendations. To make the most of PIM, there are five things you should know:
1. To meet the expectations of your online customers, strive to understand them better by using data that’s qualitative and quantitative, historic and current; in addition, use data that provides a context critical to taking relevant actions.
2. To ensure that the experiences of your online customers aren’t static or boilerplate, make all key elements in the merchandising toolset intuitive and dynamic but, above all, tailored to the individual customer.
3. To leverage relevant content for other sales channels, consider the long-tail strategy and enhance the assortment. If customers dial in to the hotline, inside sales can leverage product search and automatic recommendations for intelligent cross- and up-selling within seconds. The hotline connects customer profiles and product information as well as availability on stock in your own warehouse or in the suppliers’ warehouse.
4. To present the best option to each customer, automate personalization of promotions and targeting. This means checking that every promotional banner that is presented has been optimized; banners that convert poorly must be automatically demoted and replaced by others that perform well. It’s all about automatic testing: Which campaign will convert best and which banner within that campaign—the blue, the red, or the one with a big arrow on it? Adopting an integrated approach ensures that a campaign will not be presented more than once on the same page. By using advanced techniques to understand which promotions appeal to each customer—and, more importantly, which don’t—the solution adapts in real time to present the most appealing banners in the context of each customer’s journey.
5. To ensure a cohesive customer experience, unify the many different information elements—filters, banners, promotions, product recommendations, and editorial content. Seen from the user’s perspective, these elements should all be parts of the same picture, presented in a coherent context. The user expects content shown in all of these panels to be orchestrated and related to what is relevant to him or her right now (see Figure 1).
Information Needs to Be Relevant: Targeting Customers with Product Recommendations Is Valuing Customers Is Keeping Customers
Using the behavioral data generated by product information and customer data (see the entire whitepaper), companies can:
- Monitor product exposure for different customer segments
- Gather information on how your visitors name, find, and filter products
- Learn which requests, products, and categories best boost the conversion of your channel
- Follow up customer behavior online after execution of print campaigns
- Learn which changes in product data have the biggest impact on conversion
With cutting-edge product information management, you can guide and inspire your customers with instant, highly relevant content like real product recommendations. Doing so makes all the difference in boosting the quality of their shopping experience and, ultimately, their loyalty to your site.
One last thing: Have you already thought about tailoring other sales and marketing channels beyond e-commerce and e-mail? What is the next logical buy at a call center or at an on-site store?