Here Are 5 Product Recommendation Models That Increase Customer Retention and Lifetime Value
There's no one-size-fits-all way to get customers to buy with you again. Implementing the right recommendation models will make it easier. Get to know 5 main types
Different people react to different triggers. That’s why there is no one-size-fits-all tactic to get customers to engage in a certain way.
And so, while encouraging customers to visit your site and make a purchase is typically the main objective of many marketing campaigns – sending a campaign with an assortment of products from your site may encourage some customers to click through to your site, but the majority of customers expect your emails to be more personalized than that.
By adding personalized recommendations to your campaigns, you can increase the likelihood of a customer returning to your site by 300% and reduce the unsubscribe rate by 65%.
To optimize the performance of your recommendation emails, it is essential to match the recommendation model to the objective you would like to achieve. Optimove offers several recommendation models. Let’s get to know them:
- Product Replenishment – based on each customer’s specific usage and reorder patterns.
- Collaborative Filtering – recommends items based on customers’ previous purchases, and the previous purchases of similar customers.
- External Recommendations – leverages recommendations from an external data source.
- Realtime, Dynamic Recommendation Emails from External Sources, in DynamicMail – populates the recommended content in realtime upon email open.
- Customized Recommendations – tailored to any brand by Optimove’s Professional Services team.
Brands that offer commoditized, replenishable products can improve customer retention and encourage them to keep coming back by identifying their customers’ individual replenishment patterns. Doing so allows brands to send a personalized email to each customer, ahead of when their product will run out, remind them to make another purchase, and encourage them to do so, as well as optimize the overall customer experience.
Exposing customers to recommended products that customers are likely to respond well to is a great way to keep a customer engaged with a brand and increase their average future value.
Leveraging the collaborative filtering algorithm, brands can easily personalize their recommendations by displaying the most suitable products for each customer.
Brands with their own product recommendation engine can use those recommendations and any other customer attribute in Optimove to contextualize and maximize their personalization efforts.
Realtime, Dynamic Recommendation Emails
With Dynamic Mail, brands can deliver a real-time, dynamic recommendation email that incorporates a number of the abovementioned recommendation models and populates recommendations upon email open to take the customer experience to the next level.
Brands can also embed dynamic interactive content into emails. For example, brands can increase the sense of urgency when sending a recommendation email by including a countdown timer to when the offer will expire.
Customizing a brand’s recommendation model allows them to execute sophisticated use cases unique to their needs. With the assistance of the Professional Service’s team, brands can customize any of the abovementioned recommendation models or create a bespoke recommendation model.
For example, the Professional Services team can create a model that recommends newly released products or recommends products based on customers’ browsing behavior.
While recommendation emails play an essential role in customer retention and lifetime value, using the most appropriate recommendation model to your objective will maximize your efforts.
To learn more about Optimove’s recommendation models, contact us.