Personalized search functions and recommendations are clever ways to optimize the customer journey in e-commerce. Thanks to modern AI technology, these can now be implemented even more easily. B2B customers are able to quickly find the right products in an online shop. But there are also many advantages for B2B sellers. In this article, we take a closer look at the greatest potential of personalized search functions and recommendations.
Business customers' expectations of e-commerce are constantly increasing. B2B customers want to find the right products quickly and therefore expect personalized and targeted navigation with appropriate recommendations on the homepage, on product pages, in the shopping cart, on category pages — essentially on the entire website. With an onsite search and recommendation tool, you can help your customers find what they are looking for more quickly. Such a tool autonomously draws on all available background information about the user in order to provide the most personalized and relevant shopping experience possible.
Onsite search functions, recommendations and the power of personalization
Why is it worth using personalization in onsite search?
Because website visitors often use the onsite search bar when they already know exactly what they want and have a clear intention to buy. This is especially true in the B2B sector. That's why a well-performing onsite search function is essential in B2B e-commerce. If customers can't easily find the product they want, they'll leave your online store and look elsewhere. On the other hand, if they find the right product at the top of the search results because you've personalized it, a conversion is likely.
For example, your fasteners product category is dominated by two brands. Half of your customers prefer brand A, and the other half prefer brand B. If brand A's products rank at the top of the search results list, half of your customers will have more difficulty finding the products they are looking for. The same is true in reverse (if brand B's products rank better). The only viable solution is to personalize the fasteners so that the ranking matches each customer's preferences.
Personalized recommendations also increase your conversion rate significantly. Ultimately, the probability of a conversion is much higher with a personalized recommendation than with a hard-coded recommendation. Personalized recommendations also have the advantage that the average order value increases because additional products are added to the shopping cart. It’s a win-win situation for your customers and your company.
Personalized search functions and recommendations — child's play with AI!
Fortunately, improving (i.e., personalizing) your on-site search and recommendations has never been easier: More and more modern e-commerce websites are using artificial intelligence (AI) to do this. Algorithms use existing data to create unique user journeys that precisely match each visitor's preferences and context.
Personalizing search and recommendations using AI enables your customers to have a smooth, pleasant, and quick ordering process. The great thing about AI-supported personalization is that your company's return on investment is very easy to measure. By setting clear KPIs in advance and continuously checking whether your algorithm is achieving the desired result, you can closely monitor the ROI and identify optimization potential.
What benefits do personalized search functions and recommendations offer your company?
1. Higher conversion rate
A good AI-powered online search and recommendation tool ensures that customers find exactly what they are looking for. This is important because your conversion rate, to a large extent, depends on good discoverability. After all, you can't buy what you can't find. That's why personalized results increase the conversion rate by an average of 20%.
2. Higher average order value
The order value also increases by an average of 5%. This can be achieved, for example, through AI-supported tie-in sales, which means more items are purchased and the order value increases. AI-supported personalization also allows you to display alternative products (e.g., when a product is currently unavailable) and prominently place new products and private labels.
3. Higher average revenue per visitor
Due to the higher conversion rate and higher average order value, revenue per user also increases, by an average of 27%.
4. Higher customer lifetime value
Personalization is beneficial at all stages of the customer journey. You can support and advise customers in their own business processes by suggesting maintenance or replacement of components, prioritizing documentation that corresponds to the installed base, etc. This leads to stronger customer loyalty and, as a result, higher customer lifetime value.
5. Lower cost per visitor
When you offer a better, personalized user experience, the proportion of repeat visitors increases, which in turn reduces your cost per visit or acquisition by an average of 18%. In addition, personalized search functions and recommendations ensure that your customers order exactly the right products for them, which will reduce the volume of returns, complaints, and support requests.
6. Higher share of wallet in key customer segments
Personalization creates a better customer experience and makes you the preferred supplier for online orders. Customers who use multiple suppliers will buy more of their needs from you, helping you increase your market share over the competition. Whoever offers the best experience wins the business.
Want to learn more about personalization in B2B e-commerce and how AI can help you perfect your customer journeys? Then download this whitepaper:
