Capmark Financial Group’s newly combined companies generated more than $1 billion in 2014 e-commerce sales.
Those suggestions also increased the site’s average order value 40%.
Entering recommendations manually is a waste of time because, the recommended items are often off target and sometimes out of stock, says Mike Massey, owner of Massey’s Professional Outfitters.
Massey should know. For several years MasseysOutfitters.com staff manually entered recommendations.
“When we would get a new piece of inventory we’d manually see what might fit with it,” he says. “And since most of our inventory is seasonal with a short shelf life we were in a perpetual cycle where we were entering recommendations for products that would be sold out in a few months.”
Since it was a laborious process, the employee entering the suggestions ended up entering the same suggestions over and over, he says.
With that process in place the site’s conversion rate was 1.5%.
But since MyBuys Inc., a provider of online personalization and product recommendation technology, automated that process the conversion rate jumped to 4%. Moreover, the site’s average order value increased 40%, from $100 to $140.
On each product page MyBuys presents shoppers with six recommendations, some of which include the percentage of consumers who ultimately purchased an item. That data encourages shoppers to click on additional pages, which is why the average time on the site has risen from under 30 seconds before adding personalized recommendations to about 90 seconds, says Massey.
In addition to on-site recommendations, MyBuys also sends out personalized e-mail alerts and product recommendations to Massey’s opt-in mailing list. Those e-mails have proven so effective the retailer is looking to mail tailored offers to its customers, as well.
“Making things relevant for the consumer makes for a great shopping experience,” says Massey.