Product recommendations are quickly becoming a staple of online shopping experiences. Whether it’s Walmart.com or a new Shopify store, more and more companies are incorporating “Also Recommended” or “Customers Also Bought” offers to their site. However, too many recommendation engines today are still a bit clunky – if you look at one pair of blue jeans, suddenly all you get are offers for dozens of blue jeans.
Today we’re sharing how one fashion retailer used a different approach to product recommendations, leading to a 26% increase in Average Order Value.
Based in Chicago, this retailer is a fast-growing fashion brand with stores across the Midwest, featuring on-trend pieces at affordable prices. With the launch of their online store several years ago, they expanded their reach across the U.S., offering thousands of online products and garnering rave reviews in the process.
Canopy Labs began working with this retailer in 2014 to personalize their online shopping experience. With a focus on growing cross-sell and up-sell opportunities, the store wanted to avoid the “row of blue jeans” recommendation problem.
To solve this, Canopy helped the retailer launch a new Also Recommended section, where customers receive clothing and accessory recommendations that together form a great outfit – instead of just a row of blue jeans.
This product recommendation engine became an instant hit with the store’s online shoppers. 1 in 7 of the store’s transactions involve customers clicking on “Also Recommended” products, and these customers browse an average of 22 items per session, 3.5x more than the site average of 6 items.
The immediate benefit was an increase in Average Order Value, since customers are being exposed to complementary items to add to their cart. The Average Order Value of these customers increased by 26%, going as high as 35% in some months.
Building product recommendations personalized to the customer not only drives revenue, but makes for a more relevant and enjoyable shopping experience. If your business is looking to power 1:1 product recommendations, send us a note!