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.
Optimized Customer Loyalty Programs
According to the 80/20 principle, a minority of your customers will account for a large number 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.
Targeted and Tailored Multi-Channel Advertising
In digital advertising, you have the chance to test many different advertising messages. When you have hundreds or thousands of online ads running, identifying winners becomes difficult. That’s where a recommendation engine can help you. For example, Google Ads includes a recommendation engine that provides suggestions on ways to get more traffic by increasing bids.