3 Reasons Why Your Company Needs Recommendation Engines


Recommendation engines are widely used to make more sales and improve customer retention. Earlier, we looked at Netflix’s experience – their recommendation engine is a crucial technique to keep customers engaged and subscribing month after month. Recommendation engines help you make more money in several ways.

1. Highly personalized product recommendations

This is the best-known use case for product recommendations. If you have a large number of products or an e-commerce website, make product recommendations your focus. You’ve seen it on Amazon, Netflix, and other consumer websites. In B2B sales, a product recommendation engine is also useful because it can provide upsell suggestions for your sales representatives.

2. Optimized Customer Loyalty Programs

According to the 80/20 principle, a minority of your customers will account for a large amount of your sales. These highly engaged customers deserve special treatment, so they keep buying and referring more customers to you. Use a recommendation engine to identify your highly engaged customers and give them special offers and rewards. For instance, instead of offering every customer a 10% off coupon for Black Friday, offer something personalized (e.g., “get a 2 for one offer on all the products you’ve purchased in the past six months”) to your loyal customers.

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