Insights

3 Ways how AI recommendation engines drive user experience

Post by
Suraj Venkat
Insights

3 Ways how AI recommendation engines drive user experience

By
Suraj Venkat
|
March 16, 2021
|
3 Mins Read
3 Ways how AI recommendation engines drive user experience

Did you know Netflix's subscribers watch 20% of the videos from their own choice and the remaining 80% from recommendations by Netflix. This clearly shows us the tremendous power of AI to influence our choices.

Now let's come to our A to Z brand for a moment. 35% of Amazon’s revenue comes from its product recommendation.

But how is that possible?

Let’s find out.

When was the last time you made a purchase that was recommended by your friend/family?
When was the last time you searched for a product review on youtube?
Why do you do so?

There are three main reasons for that:

  • To know that the product is reliable.
  • To know that we are getting value out of it.
  • To ensure we are spending money on a quality product.

AI recommendation is like your friend or your go-to YouTube influencer. Based on your interests, it recommends you products.

But, how is it going to be a game-changer for your business?

Previously, product recommendations were made with the user's purchase history. But now, the recommendation process is accelerated to the next level.

The AI recommendation engines work under a set of algorithms to collect, store, analyze, and recommend products. These algorithms help your business to hit your ‘high value clients’ directly so you don't need to lose time on filtering them from cold and warm leads.

Here are three ways that AI recommendation engine can  enhance the user experience:

  1. Hit the target – As discussed, AI recommendation engine targets your high value customers directly. These customers are the ones who are really in need of your product, so AI recommendation engines simplifies their product search process.
  2. Gives direction – The AI recommendation engine provides a perfect path for the user to make the purchase. It also updates the user whenever an offer is released for their preferred product. Through this method, the AI recommendation engine drives the users to make a purchase.
  3. Exposure – AI recommendation engine exposes the user to a wide range of products. In this way, it helps the user discover products that they might need.

The AI recommendation engine functions with the goal of conversion. It is capable of converting a user to your ideal customer who will be loyal to your brand.

Now, you may have a doubt regarding how to implement an AI recommendation engine for your online business. Given the wide array of products available in the market, it becomes difficult to choose which software or service is really going to help your business.

We are here to guide you to the right software and services which will suit your business needs and give the maximum value.

Btw check out this really cool recommendation product Peritus Assistant