monetate-2018年Q2电子商务报告——正确的推荐（英文）-2018.12-31页-1mb

Summary of EQ2 | 2018: The Right Recommendations

Core Content

This report from Monetate's Ecommerce Quarterly (EQ2 | 2018) focuses on the importance of delivering the "right" product recommendations to enhance both immediate revenue and long-term customer loyalty. It highlights the role of product recommendations in driving engagement, increasing conversion rates, and improving average order value (AOV) and customer lifetime value. The report also emphasizes the need for a more sophisticated, customer-centric approach to recommendations that integrates them into a broader personalization strategy.

Main Findings

Immediate Impact of Product Recommendations

• Engagement Drives Conversion: When product recommendations inspire customer engagement (clicks, adds to cart, or purchases), they significantly increase purchase rates.
  • In-Session Purchase Rate: Customers who engage with recommendations have a 70% higher purchase rate (10.5% vs. 6.2%).
  • Return Session Purchase Rate: Engagement also leads to a 55% increase in purchase rates in return sessions.
• AOV and Cart Size:
  • Sessions where customers engage with recommended products see a 33% increase in AOV, from $107.12 to $142.44.
  • The average number of items purchased increases by 50%, from 3 to 4.5.
• Irrelevant Recommendations: Recommendations that do not trigger engagement have minimal impact, similar to not recommending anything at all.
  • AOV for non-engaged sessions is $101.63, with an average of 3 items purchased.
  • This indicates that only relevant recommendations can truly drive value.

Long-Tail Benefits

• Return Session Performance:
  • Customers who add recommended products to their cart but don't purchase in the initial session have a 2.8X higher conversion rate in return sessions (16.5% vs. 5.6%).
  • These customers also tend to have 45% higher conversion rates and 38% higher AOV in return sessions compared to those who left non-recommended products in their cart.
  • The AOV for return sessions with recommended products is $158.42, while it is $115.14 for non-recommended products.
• Customer Engagement:
  • Only 11% of customers engage with product recommendations.
  • However, 5% of those who do engage result in a purchase or cart addition.
  • This highlights the need for more effective recommendation strategies to inspire interest and drive action.

Key Insights

• Relevance is Critical: Product recommendations must be relevant to the customer's current interests and needs to be effective.
• Holistic Strategy: Recommendations should not be treated as a standalone feature but as part of a broader personalization strategy.
• Data-Driven Decisions: Marketers should leverage historical and behavioral data to deliver contextually relevant recommendations, rather than relying solely on product-centric algorithms.
• Customer Experience: Engaging recommendations can improve the overall customer experience and build brand loyalty over time.
• Opportunity for Improvement: Despite their potential, many brands are not optimizing their recommendation strategies, with only 88% of recommendations being ignored by customers.

Recommendations for Marketers

• Reconsider Recommendation Strategies: Focus on delivering personalized and contextually relevant recommendations.
• Integrate with Personalization Efforts: Treat recommendations as an integral part of the overall personalization program.
• Use Data to Enhance Relevance: Leverage customer data to make informed decisions about what to recommend.
• Monitor and Optimize: Track engagement metrics and adjust strategies to improve performance.

Key Metrics and Benchmarks

Website Visits

• Global:
  • Traditional: 37.51%
  • Smartphone: 52.73%
  • Tablet: 9.29%
• US:
  • Traditional: 39.24%
  • Smartphone: 52.28%
  • Tablet: 7.81%
• GB:
  • Traditional: 26.28%
  • Smartphone: 57.62%
  • Tablet: 15.99%

Conversion Rate

• Global: 2.86%
• US: 2.63%
• GB: 4.31%
• By Device:
  • Traditional: 3.83%
  • Smartphone: 2.03%
  • Tablet: 3.84%

Add-to-Cart Rate

• Global: 10.40%
• US: 9.04%
• GB: 16.47%
• By Device:
  • Traditional: 10.93%
  • Smartphone: 9.78%
  • Tablet: 15.99%

Average Page Views

• Global: 7.67
• US: 6.63
• GB: 10.95
• By Device:
  • Traditional: 8.23
  • Smartphone: 6.91
  • Tablet: 8.04

Average Order Value (AOV)

• Global: $132.62
• By Device:
  • Traditional: $153.31
  • Smartphone: $108.99
  • Tablet: $118.02

Conclusion

The report underscores the importance of the "right" recommendations in driving both immediate and long-term value for ecommerce brands. It emphasizes that effective recommendations can enhance customer engagement, increase conversion rates, and improve AOV, but only when they are relevant and personalized. The findings suggest that marketers need to refine their strategies to ensure recommendations are not just a tool for pushing products, but a means of improving the overall customer experience.