How does AI product recommendation work and why do you need it?
Competition in e-commerce is increasing. To stand out as an online shop owner in a crowded online space, you need to keep up with the latest digital solutions.
One of these must-have marketing automation tools is the AI-generated product recommendation tool, which can help you figure out who to recommend your products to light years more efficiently.
Now you'll learn four AI product recommendation methods that can help you market more effectively online.
1. AI product recommendation based on similar profile
In this approach, AI recognises users with the same interests and recommends them products purchased/viewed by webshop visitors with similar profiles.
What's more! It can even analyse previous purchase data to find and recommend products that are frequently purchased together. Thanks to this, your customers can discover the treasures of your online store that have worked well with previous visitors.
2. AI product recommendation based on frequently purchased products
The recommendation can also be based on an analysis of frequently purchased products. How?
For example, by seeing which product a user is browsing on your website, the AI will analyse the purchases that other users have made while browsing the same product. It then offers them the product that is popular with other users, and you can be almost certain that it will be added to your customer's virtual shopping cart.
The other way is if the AI not only identifies products that your visitor has previously purchased, but also keeps an eye on what others have purchased along with the same products when making a recommendation. A perfect combination!
3. AI product recommendation based on views
AI can recognise which products are most often viewed together and even make recommendations based on this. And the great thing about this is that it can also direct your visitors to products that they may not have originally searched for, but which may still appeal to them.
4. AI product recommendation using the weighted model
This type of recommendation combines the above methods to prioritise products for recommendation. In effect, the system creates links and analyses the purchase of the linked products. What does this look like in practice? For example, a visitor goes to your website, a product recommendation pop-up pops up. First they see recommendations that they are most likely to buy, and only then do they see the items they want to view.
Product recommendation by AI is one of the magic bullets of e-commerce. But it's important to know that AI can only work effectively with the right amount of data. If you have enough products and a monthly number of customers, there are a few things you, as an ecommerce owner, should do to help the data acquisition process. How?
#1 Generate as many (returning) visitors to your site as possible.
#2 Develop the details and features of your products in a detailed and structured way.
#3 And the most difficult: wait patiently, even for 2-3 months. This is the minimum time the system needs to learn.
If you take all this into account, you will not only increase your conversions, but also your customer satisfaction. Artificial intelligence can also help you to retain customers. And repeat customers are the best customers - we all know that.