Apt Product Tips Can Massively Raise Turnover

    Luigi's Box Recommender offers a range of benefits that will conveniently increase the turnover of your e‑shop.

    Apt Product Tips Can Massively Raise Turnover

    Luigi’s Box Recommender is a smart tool that displays personalized product recommendation boxes in your shop. Recommendations are tailored to each customer using artificial intelligence.

    Luigi’s Box Recommender shows for instance:

    Home page

    • recently viewed products
    • new items
    • popular items

    Product detail

    • similar products
    • related products
    • popular products of the same brand/category

    It is possible to display recommendations also in various other parts of the e‑shop, such as directly in the shopping cart, category page, etc.

    A/B testing in the NAUREUS e‑shop

    Between November 9 and December 3, 2021, in cooperation with the NAUREUS e‑shop (www.naureus.sk), we conducted extensive A/B testing to monitor the performance of the deployed Luigi’s Box Recommender.

    Discounts are the best content for the homepage

    In addition to the two existing recommendation boxes, we’ve added two new ones to the homepage – “Recommended for you” and “Last seen”. The first one works with data collected from a customer’s visit to the store, tracking their behavior – where they clicked, what they viewed, or what they bought. The second one shows the most recent products, which the customer viewed in the e‑shop, and allows them to review those products conveniently. In this case, ironically, the original discount recommendation box performed best in both cases.

    The second best performing box was “Recommended for you“, which was just as engaging to visitors as the discount recommendations box (same CTR* of 1.6% and same CVR** of 46.5%) and generated up to 84 assisted conversions. For a Recommender on the homepage, this is an excellent result.

    For the “Last Seen”*** recommendation box, the original version performed better, achieving a CTR of 1.2% versus 0.4% for the Luigi’s Box, resulting in 207 assisted conversions (versus 74 for the Luigi’s Box Recommender). This may be because the original version is likely to have more accurate user history information.

    *Click-Through Rate is the ratio between the number of clicks on a link and the number of times it is displayed, expressed as a percentage.
    **Conversion Rate is the ratio of successfully performed actions to the number of visits to the page expressed as a percentage.
    ***note: the “Last seen” statistics include results from the section of the same name placed next to the product detail because the analytical tool cannot distinguish these data).

    Recommendations in the shopping cart with a conversion rate better than 50%

    With the original solution, Recommender was not deployed in the cart at all, so we did not have the data for comparison. However, the version with Luigi’s Box Recommender deployed achieved some promising numbers – up to 2.6% CTR and 50.8% CVR, resulting in 286 assisted conversions across 96 sessions.

    2.6 %

    CTR

    50.8 %

    CVR

    286

    assisted conversions

    96

    sessions

    Up to 1.8x more conversions thanks to recommendations in product detail

    The recommendations in the product detail were only deployed for 16 days but still achieved a higher CTR (4.7%) than the original one with a CTR of 3.2%, while the CVR was comparable, 30% vs 34%. The number of assisted conversions was 1.8x higher with Luigi’s Box Recommender, specifically 552 assisted conversions vs 313 conversions.

    Recommendations on category pages reached almost five times as many conversions

    The original version included a box with recommendations for the TOP products in the category, while the Luigi’s Box displayed personalized recommendations from the category. Overall, Luigi’s Box saw 4x more recommendations displayed, with a CTR of 0.7% versus 0.5% for the original version. CVR was comparable, 41% vs. 42.9%. In total, Luigi’s Box Recommender generated 83 assisted conversions, while the original version only generated 17.

    +4.8x

    more assisted conversions with Luigi's Box

    As we can see, Luigi’s Box recommendations performed better in all cases except for the “Last seen”, and they also yielded more assisted conversions. Therefore, the client decided to continue the collaboration and continue using personalized recommendations in their e‑shop.

    Place of personalized recommendations in the Naureus.sk e‑shop was proven by the last year's A/B. With few exceptions, in most cases, Recommender increased the number of conversions, sometimes up to 5 times.

    David Škrobánek
    Director, Naureus

    Why is it worth using recommendations in an e‑shop?

    Luigi’s Box Recommender offers a range of benefits that will conveniently increase the turnover of your e‑shop. Overall, customers who see personalized recommendations not only stay longer in the store but also compare the prices less. Moreover, tailored recommendations:

    • Reduce cart abandonment rate – displaying personalized recommendations on the shopping cart page can improve cart abandonment rate by 4.35%
    • Increase average order value (AOV) – personalized recommendations offer opportunities to cross-sell and up-sell, making the customer buy more
    • Prolong time spent on the website – customers stay in the e‑shop longer, so we can capture their interest by recommending products that they did not consider previously or did not expect to find
    • Make an e‑shop stand out among the competitors – up to 80% of consumers say they are more likely to buy from an e‑shop that offers a personalized service

    Customers are up to 56% more likely to return and purchase again with personalized recommendations. Plus, they can increase the average shopping cart value by up to 25%, which is definitely worth it!

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