Apteo discusses why and how product recommendations can boost your ecommerce store’s customer lifetime value, repeat purchase rates, and customer retention with AI-driven product cross-sells.
An effective ecommerce store is customer-focused, full stop. The ultimate goal for the business is to get the right product to the right customers, which will keep shoppers happy and revenue flowing.
But how do you know which products are the best fit and for which customers? That’s where Apteo comes in. Apteo uses customer behavior and purchase data to give ecommerce stores the information they need to help their customers find their favorite items with timely product recommendations. This leads to happy customers and, in turn, a successful online store.
This article is part of Apteo’s series of use cases that give in-depth suggestions for how to apply Apteo’s features to a solid ecommerce marketing strategy. In this piece, you’ll learn the value of product recommendations, how Apteo generates two types of recommended products, and how to use those recommendations to increase sales and customer satisfaction for your ecommerce store.
Including product recommendations on your ecommerce store is a valuable tactic for two major reasons. First is simply that product recommendations drive conversion rates, and second is that they are key to providing a better overall customer experience.
Product recommendations are an effective way to improve conversion rates and increase order value. According to a study done by Barilliance in 2018, product recommendations led to 31% of ecommerce revenue and users who selected a recommended product were over five times more likely to convert. Suggesting products tailored to customers’ preferences or displaying your customers’ favorite items makes it easier to connect your product to the needs of shoppers, leading to more conversions and increased revenue.
Besides improving conversion rates, product recommendations also optimize your ecommerce store’s customer experience. The longer a customer has to search for the product that best suits their needs, the less likely they are to be satisfied. Product recommendations drastically reduce the amount of time needed for a shopper to find the best fit for them, and their satisfaction with the product will be reflected with brand loyalty and repeat purchases.
Segmentation is a vital part of any healthy marketing strategy, especially in ecommerce. One of Apteo’s premier features is Smart Segments. Smart Segments use data gathered from your ecommerce store to analyze customer behavior and assign them to the appropriate segments. This way, you can effortlessly target specific segments with marketing efforts and improve customer retention.
Each Smart Segment analyzes customer behavior to understand how frequently a particular segment shops, how large their typical orders are, and the types of products they usually buy. With this information, Apteo’s platform generates two options for product recommendations:
Apteo uses your store’s purchase data to understand which items are frequently purchased together. Cross-Sale Recommendations are used to target a segment that contains customers who buy a particular product without buying another item that it is typically bought with. By recommending the latter product in marketing messaging, you will be more likely to score a follow-up purchase from customers in that segment.
Apteo identifies which products a user is likely to buy again with Repeat-Purchase Recommendations. Apteo determines how frequently customers and segments purchase particular products, allowing you to send a timely message through the touchpoint of your choosing that encourages customers to repurchase their favorite products.
Apteo’s Essential Guide to Ecommerce Customer Journeys laid out touchpoints, or tactics for engaging customers, for each step of the customer journey. Recommended products are relevant throughout the customer journey, especially at the Acquisition and Retention stages.
Here are four ways to apply product recommendations to common touchpoints for those stages:
With the analysis provided by Apteo’s product recommendations, you’ll have a solid idea of which recommended products to place throughout your online store to drive conversions and repeat purchases. For example, you can create a general category like “Bestselling Products,” or display a carousel of products that are often paired with the product a user just added to their cart. Personalized product recommendations are also effective and can be presented to users on your home page, landing pages, or alongside the customer’s cart.
Sprinkle recommended products throughout your website so users become familiar with what you are offering to them. The more users encounter the same recommended products, the more they will trust that these are great fits for their needs—and since you’re using a data-backed approach to generate these recommendations, they are likely to be a good choice for the customer.
Email is an excellent touchpoint to use throughout the customer journey. One of the best ways to implement email marketing is to include personalized recommendations in your messaging. Send follow-up emails after a purchase to customers with a suggested Cross-Sale Recommendation, or reach out to customers who are due for a follow-up purchase with a Repeat-Purchase Recommendation.
Apteo is a powerful tool to use alongside email marketing because it simplifies the segmentation process. This way, your messages and recommendations will resonate with your customers. You can use Apteo to export customer email addresses directly from any segment and import those addresses to whichever email marketing platform you use, like Klaviyo, Mailchimp, Omnisend, and more.
SMS marketing is another great tactic for delivering product recommendations to customers. SMS balances brevity in messaging with immediacy in action since people check their phones more often than their emails.
Text messages can be used to deliver both Cross-Sale Recommendations and Repeat-Purchase recommendations. For Cross-Sale Recommendations, consider following up with a customer shortly after they receive a purchase and let them know how the recommended product can enhance their experience. Repeat-Purchase Recommendations can be made when you’re expecting a customer to re-purchase a product so your brand has a top-of-mind presence when the customer is ready to shop.
Apteo can help you reach SMS audiences in a similar manner to email marketing. Apteo stores available phone numbers provided by customers, which you can import into Klaviyo with direct integration, or you can export the phone numbers and upload into your chosen SMS marketing service.
Social media advertising has become a marketing giant, largely led by Facebook and its 2.8 billion monthly active users. Chances are your ecommerce business already has a Facebook Business profile because it’s a great way to directly communicate with your customers.
Facebook ads are another touchpoint that can be leveraged to share recommended products with your customers. Use the Facebook Ad Manager to create product recommendation campaigns for both Cross-Sell and Repeat-Purchase Recommendations and direct those campaigns at the appropriate segments.
To synchronize your Apteo Smart Segments with Facebook, use Facebook’s Custom Audiences feature. Here, you can import your store’s segments into your Facebook Ad Manager by uploading the .csv or file of your Smart Segment into a Custom Audience.
If you’re looking for a solution to nail product recommendations for your ecommerce store, try Apteo for free to learn how Apteo’s Smart Segments and Product Recommendations will help you increase conversions and keep your customers satisfied.
James Uzzalino is the Head of Growth at Apteo, where he is responsible for engaging with customers and partners to deliver value and grow Apteo's business.