Our very own Sales Director, Seth Brandes, is this week’s featured guest blogger at 3dcart.
Get the Tools the Big Dogs Use
What makes Amazon an astounding $19,000 per minute? Is it advertising? Email marketing? Search? Nope. Automated personalized product recommendations are responsible – generating a whopping 25% of Amazon’s total revenue. And it’s not just Amazon seeing these kinds of results. Oracle (ATG) reports that customers who click on recommendations are three more times likely to convert, and spend 30% more.
- Netflix states that 60% of their members use recommendations.
- According to Tom Davis, director of e-commerce at Tommy Hilfiger, “We’ve seen a threefold increase in online shopper conversions when someone interacts with the (Oracle) recommendation system. At the same time, our staff is spending less time than ever managing the process.”
These large companies are clearly benefiting from product recommendations, but large retailers have to invest a pretty penny to access this crucial feature – typically $50,000 or more per year for them! Luckily this valuable technology, previously prohibitively expensive both to implement and to license, is a low cost add-on for 3dcart retailers of all sizes.
What are personalized product recommendations?
Personalized product recommendations are just that – suggestions of products often bought together, but tailored to the individual. Think cross-sell and up-sell, like the fries you get with your burger, or the gum and magazines at the grocery store check-out. Now consider what would happen if the clerk knew you had a sweet spot for Hershey bars. Recommendations can automatically and dynamically be created for each individual buyer. They can be based on your historical sales, an individual’s personal shopping history, and your product catalog.
Personalized recommendations greatly improve the shopping experience, making it easier for browsers to find the products they are seeking directly and indirectly (i.e. a shopper may not have wanted an extended warranty until presented with the option to purchase it). Naturally, this leads to a boost in sales for you, the store owner.
How can retailers of all sizes benefit from personalized product recommendations?
Imagine these results in your own store. For shoppers who click on recommendations:
- 3x conversion rate of browsers to buyers
- 4x the number of products viewed, resulting in increased order sizes up to 30%
- Lower cart abandonment
- Improved customer loyalty resulting in more repeat business and referrals
The bottom line for your business: automated recommendation systems typically provide a 5-15% increase in revenue, with almost no effort or ongoing management.
What’s next? Beyond website recommendations.
Recommendations are persuasive in other areas such as email, mobile and social commerce as well. Many retailers are preparing to take personalization to the next level in email marketing by including recommendations in order and shipping confirmation, and cart abandonment email. This is yet another way to keep your customers connected to your site and offerings.
What are you waiting for?
Let recommendations start working for you now. Get your sites running with automated personalized product recommendations before the “holidaze”. Create a better experience for your customers and boost conversion for your store at the same time. It’s a win-win situation!
4-Tell has partnered with 3dcart, giving merchants of all sizes the ability to offer automated personalized, product recommendations to their customers. This enterprise-class system for the SMB market generates results similar to the systems the big dogs like Amazon use. With 4-Tell, integration on your 3dcart site is free and we get you up and running in a matter of hours! 4-Tell pricing for 3dcart retailers is volume-based and starts at $49 per month with a 30-day risk free trial. More information at www.4-Tell.com, or contact Seth, seth@4-Tell.com, 971-338-9835.
About Seth Brandes
Seth is the Senior Director of Sales and Biz Dev at 4-Tell. At 4-Tell, Seth brings veteran knowledge and value to clients and partners by helping strategically implement 4-Tell’s personalization and recommendation solution.