Product recommendations are an excellent tool to enhance customer experience and drive revenue. According to Accenture, 91% of people are more likely to shop with a brand that offers relevant product recommendations. However, like any optimization campaign, they can only help your business grow when they are measured properly.
Before you can deliver effective product recommendations, it is crucial to know how you will measure your success. Here are 4 key metrics you should consider using when building your product recommendations campaigns.
Revenue is a crucial KPI to track in any of your optimization efforts, and product recommendations are no different. Effective product recommendations can have a huge impact on your bottom line. Tracking revenue in your product recommendations campaigns can help you measure your success.
Average Order Value
Product recommendations can also have a large impact on your average order value (AOV). When you deliver the right product recommendation to the right user at the right time, you will likely see an increase in your AOV. According to Invesp, purchases that had an engagement with product recommendations saw a 10% lift in AOV. Relevant product recommendations will help you personalize the customer experience and encourage your customers to buy more.
While product recommendations certainly have an impact on your revenue and AOV, they also affect your overall conversion rate. Shoppers that engage with your product recommendations are 4.5x more likely to add them to their cart and complete their purchase. Even if a shopper did not find what they were initially looking for on your site, a relevant product recommendation could still help them to convert and keep them coming back to your brand.
Revenue Per User
We know product recommendations can impact your overall revenue, but it’s also beneficial to track revenue per user. Much like AOV, revenue per user can help you track differences in a user’s shopping behavior over time. With revenue per user, you can see how your product recommendations are affecting what the average person spends on your site. Effective product recommendations can help you boost revenue per user as well as lifetime value.
Other Engagement Metrics to Consider
Of course, there are many different metrics you can use to track the success of your product recommendations campaigns. Consider adding in smaller engagement metrics for more in-depth user behavior tracking. For example, clicks on a product recommendation can help you gauge a user’s overall engagement with your recommendations and see the types of products they might be interested in. Scroll depth can also help you determine how many people are actually scrolling to your product recommendations placement. If your placement is too far down the page and not many users are seeing it, you might consider making your product recommendations more prevalent.
Searches can help you indicate whether or not your product recommendations are useful to your customers. If your on-site searches increase once your campaign is live, this could indicate that your product recommendations are not helping customers find what they’re looking for. Whether these metrics show a positive or negative impact from your campaign, all of them will help you learn and deliver better product recommendations to your users.
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