Recommendation Report
Recommendation Report
For customers running with product recommendation a analytics report is available. This report is designed to give an overview of the performance of the recommendations by presenting some of the key metrics. In the report the customer will be able to see,
Number of recommendations served
From this metric the customer can track the number of recommendations used on a monthly basis and how the number varies over time. The numbers breaks down into the usage per block and model and will first of all serves as the basis for other metrics but also to confirm that the correct package of recommendations have been purchased.
Number of Interactions
Measures the number of interactions/clicks with the recommendations. This number should be compared to the number of recommendations served to understand the interaction rate. The number breaks down into a block and model level, enabling the customer to gain insights around their customer's interests in different types of recommendations on various types of pages.
Generated revenue
One of the most important measurements when it discussing performance of the recommendations since it tracks the value of sales that happens after interaction with one or more recommendations. This metric breaks down into a block and model level enabling the customer to understand the performance on a more granular level and to take action on blocks/models not performing as well as others.
Conversion rate
One of the most important metrics within ecommerce businesses is the conversation rate since it confirms that the driven traffic generate sales. In the perspective of product recommendations the actual conversion rate is not the interesting number, rather than the impact that recommendations has on this number. This is measured by comparing the conversion rate of sessions interacting with recommendations to the overall conversion rate. A higher conversation rate for visitors interacting with the recommendations proves that users are presented with products they like. A lower conversation value should be seen as a signal to further investigate the recommendation model to be used.
Repurchase rate
Another important metric within ecommerce is the repurchase rate. Acquiring new customers is often expensive, hence it is important that you make sure to attract the once that come back for more. Since being such an important metric, Engage will measure the impact that customers get from running with our service. This is done by comparing the repurchase rate of visitors interacting with the recommendations to the overall repurchase rate. If a higher repurchase rate is seen from customer interacting with the recommendations the conclusion is that people revisiting like the recommendations they get and tends to add those products to their cart.
Average order value (AOV)
AOV is a key performance indicator that online businesses measure to understand their customers’ purchasing habits. Like other key metrics, AOV can be tracked for any time period, but most companies monitor the moving monthly average. Since there is a transaction cost associated with each order, increasing your AOV is a way to drive direct revenue and increase your profits. There are of course multiple strategies that could be implemented to increase the AOV and running with product recommendations from Engage is one of them. To monitor the performance of the recommendations an AOV impact metric is available that compares the AOV from orders with product recommendation interaction to the overall AOV.
Requirements
This feature requires that you run Product Recommendations.
Active sources
This feature requires one of the following sources to be active.
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