The usage of recommendation engines has become a critical aspect of developing an online store or business. AI-based recommendation engines are everywhere — Facebook, Amazon, Netflix, Spotify, and the list goes on.

But what is a recommendation engine, and why is it getting so much buzz? Let’s discuss why you should work with an AI development company and implement a recommendation engine in your business.

The rise of personalization and relevance in marketing has boosted the rise of AI recommendation engines. Consumers want to look at the world through their lens of interests, behaviors, preferences, and experiences. Since the internet has become a hub of product and information overload, a recommendation engine enables companies to deliver targeted, personalized solutions to their users.

Amazon has been using recommendation systems for years to showcase relevant products to its customers. But in recent years, these systems have expanded to other industries as well.

Take Netflix, for example. It uses AI solution to suggest movies and TV shows based on the user’s preferences.

Some business benefits of working with an AI development company and implementing a recommendation engine are:

• Improved customer experience
• Higher customer satisfaction
• Increased CTR
• More conversions and revenue
• Higher customer retention

How Does AI-Based Recommendation Engine Boost User Experience?

Using a recommendation engine in your online business can offer various benefits. Here’s why you should work with an AI solution provider and implement an AI-based recommendation engine.

Enable Personalized Interactions

80% of consumers would prefer purchasing from a brand that provides personalized experiences, showed an Epsilon research report. In this age of information overload, adding an element of personalization to your offering can go a long way in engaging your customers. A recommendation engine helps you deliver personalized customer experiences.

Provide a Consistent Experience Across All Channels

Omnichannel marketing has gained a lot of popularity in recent years. 35% of customers expect to obtain customer service on multiple channels, according to Zendesk. However, providing omnichannel experiences comes with a major hurdle — lack of consistency.

Brands need to be consistent across all channels, including social media, website, mobile app, etc. An AI-based recommendation engine ensures that users get a similar experience across all channels. For example, if a customer searches for a product on your website, the recommendation engine collects and utilizes that data to send personalized emails with relevant product suggestions.

Deliver Relevant Content

Providing relevant and helpful content can go a long way in creating brand awareness and increasing customer trust. Recommendation engines enable you to show customized and relevant content to your consumers.

Let’s take Medium, for example. The online publishing platform displays content based on your preferences and history. You can select the topics you’re interested in, and based on your reading behavior, it creates customized content lists for you.

Avoid Customer Frustration

According to Oracle, the average human attention span has plunged to eight seconds. Hence, the battle for customer attention has become more fierce. Showcasing irrelevant content or product recommendations to your customers will turn them off and create a terrible customer experience.

An AI-enabled recommendation engine filters and shows the items guaranteed to generate customer interest and engagement. This results in increased relevance, better experience, and more sales and revenue.

Meet Customer Experience Expectations

Marketing has drastically changed over the past decade or so. And when you introspect these changes, you’ll find that customer expectations have constantly been increasing.

They now expect superior, personalized experiences. In fact, 96% of customers consider customer service and experience as a key determinant of brand loyalty, showed a report by Microsoft.

A product recommendation engine helps you anticipate and fulfill customer requirements, thereby enabling you to meet customer experience expectations.

Increase Sales, Average Order Value, and Revenue

In the end, it’s all about the bottom line. When you show relevant product recommendations, customers are more likely to purchase. Besides, an AI recommendation engine can ignite your up-selling and cross-selling efforts.

Doing so can make the buying journey shorter for the customer and thus increase sales and average order value. Therefore, working with an AI solutions provider and implementing a recommendation engine can help boost your revenue.

Conclusion

It goes without saying that recommendation engines play a vital role in this digital era. Customers want to see what matters to them, and brands need to adapt. An AI-based recommendation engine enables you to identify, anticipate, and fulfill customers’ expectations, hence providing them with a superior experience. Besides, it won’t affect the infrastructure of your existing app. It is easy to integrate and is available as a plug-and-play solution.

Do you want to implement an AI recommendation engine in your business? Get in touch with Quytech, an AI solution development company today.

https://quy-technology.medium.com/how-ai-based-recommendation-engine-helps-transform-user-experience-928f9761d4b7