1、The Right Recommendations EQ2 | 2018 Table of Contents 2 About the EQ 3 Introduction 4 Driving Engagement 8 The Long-Tail Benefits 10 Delivering an Individualized Experience 12 Conclusion 14 Benchmarks US Sales average number of items purchased: 3), indicating thatrelative to cross-selling and incre

2、asing AOVtheres little to gain from recommendations that dont trigger engagement from customers. Therefore, whether the goal is to push specific product sets or to give the customer a smoother experience, the only way to drive actual value from recommendations is to take a customer-centric approach:

3、 They only matter if they can capture the attention of the shopper by displaying something well-suited to that individual, in that particular moment. Otherwise, theyre just visual clutter. Number of Items Purchased in Session, by Exposure to Recommendations 5.00 3.75 2.50 1.25 0.00 No ImpressionsImp

4、ression Number of Items Purchased In-Session Average Order Value, by Exposure to Recommendations $125 $100 $75 $50 $25 $0 No ImpressionsImpression Average Order Value US Sales & Service Call 877-MONETATE (US) | EMEA Sales & Service +44 203 7500 376 8 Monetate Ecommerce Quarterly Report | Q2 2018 The

5、 Long-Tail Benefits The in-session benefits of delivering the right recommendations are very clear. But not all shoppers are ready to act right away, and their journeys shouldnt be excluded from our analysis of recommendations overall impact. As weve explored in EQ3 2017 and other recent editions of

6、 the EQ, the customer journey is increasingly unpredictable: “normal” shopping behaviors frequently span multiple devices and sessions along the path to purchase. So, we also examined return sessions to better understand what drives the success of product recommendations, and whether they could capt

7、ure shoppers interest enough to have a longer-lasting effect on revenue and engagement. Heres what we found: The divergent trends in performance found in the initial session carry over to return sessions. When items are added to a cart but not purchased in the same session, AOV actually climbs highe

8、r upon a shoppers return session, jumping to $158.42, while the number of items purchased holds steady at 5. Those return sessions also have conversion rates (16.5%) that are 2.8X better than conversion rates for return sessions where shoppers had previously seen a recommended product, but had not a

9、dded to cart or engaged in any way (a conversion rate of 5.6%). While that may be expected, the overall benefits of recommending the right product to customers becomes even more apparent when comparing return sessions in which a previously recommended product is already in a customers cart with retu

10、rn sessions in which an unrecommended product is already in a customers cart. In those instances, return sessions for recommended products convert about 45% more often than return sessions for customers who left other, non-recommended items in their cart (11.1% conversion rate). Return sessions for

11、recommended products also have a 38% higher AOV than return sessions for non-recommended products ($115.14). US Sales & Service Call 877-MONETATE (US) | EMEA Sales & Service +44 203 7500 376 9 Monetate Ecommerce Quarterly Report | Q2 2018 In those instances, return sessions for recommended products

12、convert about 45% more often than return sessions for customers who left other, non-recommended items in their cart (11.1% conversion rate). Return sessions for recommended products also have a 38% higher AOV than return sessions for non-recommended products ($115.14). For marketers, then, the takea

13、way should be clear: Recommending the right products isnt just a single-session boon. It has a long-tail effect that even out performs non-recommended items that have been left behind, suggesting that product recommendations, when done right, can improve cross-selling initiatives and increase AOV ev

14、en after a customers immediate urge to buy wanes. Theres a catch, though. When customers see recommended products, theyre only engaging with them 11% of the time. But when they do, they show strong intentby adding to cart or purchasing in-session5% of the time. That means that nearly 50% of click-th

15、roughs result in customers moving toward purchase. Given the high likelihood that a customer will convert after initial engagement, but still relatively low levels of engagement with recommended products as a whole, its even more evident how much retailers have to gain by showing them the right reco

16、mmendations to inspire interest. It seems that marketers are doing a great job with recommendations when theyre getting them right, but theyre not getting them right often enough. Whats missing, then? For one, the overall sophistication of many brands approaches to product recommendations lags behin

17、d that of the rest of their personalization efforts. And that suggests the need for a new approach. 20.0% 15.0% 10.0% 5.0% 0.0% Recommended Product Conversion Rate Non-Recommended Product Return Purchase Rate for Items Added to Cart, by Recommended Status US Sales & Service Call 877-MONETATE (US) |

18、EMEA Sales & Service +44 203 7500 376 10 Monetate Ecommerce Quarterly Report | Q2 2018 Delivering an Individualized Experience The discoveries abovethat simply getting customers to click on a recommendation can lead to value downstream, and that irrelevant recommendations have about the same impact

19、as not recommending anything at allare eye-opening. But its hardly surprising when you consider recent trends in customer expectations. In The 2017 State of Personalization Report, researchers found that 71% of US adults surveyed for the report expressed a level of frustration with impersonal shoppi

20、ng experiences. Its the flipside of that equation, though, thats most promising and most relevant to our analysis of product recommendations: 49% of those same survey respondents also reported that they had made an impulse buy based on a personalized recommendation from a brand. Whats more is that 8

21、5% of those impulse buyers were happy with their purchase. Its become commonplace to say, “personalization is table stakes.” That may be true, but it makes it sound like theres little room to surprise customers in a positive way. What our data shows and what this survey confirms is both that custome

22、rs are still delighted by serendipitous discovery, and that marketers have plenty of untapped opportunities to deliver on that. And they should be eager to do so, given how much potential revenue is at stake. But they need to be smarter about how they facilitate that discovery. US Sales & Service Ca

23、ll 877-MONETATE (US) | EMEA Sales & Service +44 203 7500 376 11 Monetate Ecommerce Quarterly Report | Q2 2018 For too long, marketers have used product recommendations either as a stand-in for personalization (treating the one as synonymous with the other), or as a completely separate appendage from

24、 their other personalization efforts. This is a wasted opportunity. Instead, marketers need to treat their recommendations solution as an integral component of their personalization programs. Because the key to delivering the right recommendations is about more than choosing between “viewed, also vi

25、ewed” or “purchased, also purchased” algorithms. Its about understanding and acting on the dynamic context of the customer. Ideally, a recommendations solution can be just as data-driven as a brands testing, targeting, and individualization effortstaking into account historical and behavioral data t

26、hat is specific to each customer, rather than making a recommendation decision based solely on which product is currently on the shoppers screen. An added boon of this approach: Recommendations may also serve as another key data point in that dynamic context of the customer, to inform better decisio

27、ns in other touchpoints as well. As demonstrated in this report, aggregated data describing consumers behavior with product recommendations can be a powerful source of insight. But this impact could operate on an individual scale as well: data from a users interactions with recommendations is a stro

28、ng indicator of purchase intenta signal that would enable marketers to take further action for that individual. For example, a click-through on a recommended product might, conceivably, trigger a series of adjustments for that customer, facilitating their search for the right product and, ultimately

29、, helping them purchase what it is that most inspires them. Are your recommendations making the most of your customer data? Download our checklist, “6 Ways to Know Its Time to Reconsider Your Product Recommendations Solution” 01 02 03 04 05 06 Your current solution has a confusing or inflexible inte

30、rface, and requires frequent intervention from IT to perform basic configurations You lack the flexibility to combine criteria for recommendations or set dependencies When a users context changes your solution takes minutes, or even hours, to update offerings Recommendations are based on historical

31、data from average site users, but do not incorporate individualized data like customer attributes, behavior, and situational context Your solution doesnt allow you to use your own algorithms or combine manual and algorithmically-driven curation Your solution incorporates data from limited channels,

32、and doesnt use customer responses from recommendations to inform decisions across every touchpoint YES YES YES YES YES YES If youve selected one or more of the above statements, it is likely time to seek a more advanced product recommendations solution to help you drive higher revenue and maximize c

33、ustomer lifetime value. US Sales & Service Call 877-MONETATE (US) EMEA Sales & Service +44 203 7500 376 Monetate Inc. All Rights Reserved 03/2018 monetate Monetate is the leader in personalization software for consumer-facing brands. Our approach starts with the understanding that each individual is

34、 unique. We enable brands to create individualized experiences that surprise and delight customers, improving engagement and business performance. The Monetate platform is open and independent, working seamlessly across your marketing stack. Monetate is real-time, too, combining marketer-driven inst

35、incts with machine learning to deliver 1-to-1 personalization at scale. Founded in 2008, Monetate influences billions of dollars in annual revenue for Apple Vacations, Patagonia, QVC, The North Face, and hundreds of other market leaders. Here are 6 sure-fi re ways to know it is time to consider a ne

36、w approach. Review the following statements and check off any that apply to you: Checklist: 6 ways to know its time to reconsider your product recommendations solution Product recommendations are a proven way for marketers to drive sales, boosting the revenue potential of every shopping experience a

37、nd increasing customer engagement overall. However, most current recommendations tools have not kept up with the level of personalization that customers have come to expect, and they often fall short of the precision that marketing teams need to create meaningful business impact. It may be time to r

38、eevaluate whether your solution is doing all it can to meet the needs of your customers and your team. US Sales & Service Call 877-MONETATE (US) | EMEA Sales & Service +44 203 7500 376 12 Monetate Ecommerce Quarterly Report | Q2 2018 Conclusion Product recommendations, like personalization, are now

39、nearly ubiquitous in ecommerce. And while the impact both provide is clearcut, they have rarely been deployed together as part of a holistic strategy. The data in this report demonstrates that the potential is there, but perhaps the most striking data point is one that shows how much potential lies

40、ahead: Customers are declining to engage with 88% of all product recommendations they see. Whether a brand is focused on using recommendations to move product, or to improve the overall customer experience, those poor rates of engagement can only be seen as an area for improvement. After all, you ca

41、nt accomplish either goal if your tactics are largely being ignored. And therein lies the opportunity for for marketers. To improve the performance of their recommendations, marketers need to approach product recommendations in the same way theyre approaching their personalization strategy: as an ev

42、olving solution that considers the customers historical and in-the-moment data with as much weight as it gives to the brands product catalog. The art of making recommendations, then, should balance the traditional rules-based, product-centric approach of product recommendations with the more custome

43、r-centric approach thats taken hold in other areas of a brands personalization strategy. Doing so can help put the right product in front of the right customer, improving both the short-term impact that product recommendations have been known to deliver and the long-term benefits of improving custom

44、er experience. To us, that combination of recommendations and personalization feels just right. US Sales & Service Call 877-MONETATE (US) | EMEA Sales & Service +44 203 7500 376 13 Monetate Ecommerce Quarterly Report | Q2 2018 RECOMMENDATIONS Monetate, the partner of choice for more brands in the IR

45、500 than any other personalization solution, helps marketers increase loyalty among customers by identifying new and repeat customers, improving their on-site experiences, and personalizing offerings across channels. Monetate Intelligent Recommendations, available as an add-on to Monetate Test & Seg

46、ment and The Monetate Intelligent Personalization Engine, gives merchandisers and digital marketers the power to show contextually relevant product recommendations in real time and across every channel. To learn more about Monetate Intelligent Recommendations, and how it delivers the instantaneous i

47、nsights of machine learning behind a marketer-friendly interface, download our datasheet. DOWNLOAD DATASHEET 15 Website Visits 17 Conversion Rate 20 Add-to-Cart Rate 23 Average Page Views 26 Average Order Value Benchmarks The quarterly Monetate Benchmark Report contains the indispensable KPIs you ne

48、ed to gauge how your performance stacks up, and transform the ideas in this report from concept to action. Consult the metrics within to start building a plan to advance your business today. US Sales & Service Call 877-MONETATE (US) | EMEA Sales & Service +44 203 7500 376 15 Monetate Ecommerce Quart

49、erly Report | Q2 2018 Website Visits Website Visits by DeviceQ2 2017Q3 2017Q4 2017Q1 2018Q2 2018 Traditional40.25%37.44%37.73%38.19%37.51% Smartphone48.09%51.56%51.39%51.57%52.73% Other0.30%0.31%0.25%0.26%0.46% Tablet11.35%10.69%10.63%9.98%9.29% Website Visits by Device (US)Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018 Traditional43.18%40.01%40.09%40.41%39.24% Smartphone47.27%50.83%50.99%50.98%52.28% Other0.40%0.41%0.32%0.33%0.67% Tablet9.16%8.75%8.60%8.28%7.81% U