In 2021, eCommerce is predicted to generate over $4.5 trillion in sales. This figure is up significantly from past years, demonstrating the incredible growth that the eCommerce industry is currently experiencing.
Yet, clothing products have a 40% abandonment rate, tech products are left in the cart 18% of the time, and home products are deserted around 16% of the time.
Although customers actively visit eCommerce websites, they struggle to find products that suit them enough to add to the cart and hit ‘purchase’.
Luckily for us, that’s where data-driven product pairing comes in. Product pairing is an aspect of data-driven marketing that can change how your eCommerce store does business.
With Verfacto’s data-driven product pairing tools, you’ll be able to match users with products automatically, recommending items to them that they are statistically most likely to enjoy. Taking this approach will boost your sales, improve your user experience, and increase your customer LTV.
Let’s take a look at how you can incorporate this marketing technique into your eCommerce store.
What is Data-Driven Marketing?
Data-driven marketing is the process of acquiring data from customer behavior and then using it to personalize and optimize the marketing a user experiences. By understanding a customer’s habits, personality, and motivations, you’ll be able to use behavioral targeting to accommodate to them in a more efficient way.
This process allows you to create an effective marketing campaign that is personalized for a user, catering directly to their interests.
Instead of blindly recommending products, data-driven product pairing will analyze the chances of a user liking each product and then recommend the most statistically probable item.
What is Data-Driven Product Pairing?
Product Pairing is a faucet of data-driven marketing that uses statistical reasoning to recommend specific products to certain customers.
Verfacto’s Product Pairs feature steps up from traditional product recommendation systems that usually perform well for big shops but are almost useless for smaller eCommerce businesses with lower traffic and variety of products. By segmenting users, Verfacto will build up a profile of a customer’s habits, allowing your site to predict how they will respond to certain products.
Suppose a customer’s user segment has a history of responding well to a certain product. In that case, you may recommend this product to those customers of the segment who haven’t purchased it yet.
Similarly, when a customer is viewing a product page, you can use product pairing to place related items that go best with the original item. These additional products could catch a user’s eye, inspiring a cross-sale as they buy both products at once.
Product pairing also takes into account items that are frequently sold together. Verfacto will calculate compatible items, then bundle these items together as an up-sell to boost profit and your store’s AOV.
In short, product pairing is about recommending products to those that are most inclined to buy them.
When Does Product Pairing Occur?
To achieve the highest conversion rate, you need to be as precise as possible in terms of anticipating customer needs. That’s when timing becomes more a significant factor.
By looking at a user’s behavioral history, the times at which they access the store, and their time zone, it’s possible to determine an optimal purchase time for each user. This is the time of day in which they are available and around their devices.
Product timing can also take into account the days of the week and the date, focusing on days where a user is more active online. Weekends and the few days after a payday are often particularly lucrative periods.
Time-based product pairing strategies ensure that a user sees your recommended product, helping to boost email engagement and increase conversion rates.
Sequential Purchasing with Product Pairing
Sequential purchasing is the process of adapting what is recommended to a customer based on their previous purchases.
Let’s say that a user segment has a history of buying phones from your store.
While a customer may fit into this segment, if they are already looking at phone cases in your store, it’s likely that they already have a phone.
Verfacto will take note of sequential purchases like these, using inference to distinguish which products a customer may already have.
Alongside looking at past purchases, sequential purchasing will also account for the future.
Let’s take a similar situation to the one above. If a person has just bought a phone on your eCommerce store, then Verfacto will begin to recommend phone cases and screen protectors to that person. As the customer currently needs these products, you have a higher chance of making a sale.
Sequential purchasing is a critical point of data-driven product pairing, and can significantly boost the accuracy with which products and customers are matched. With a better match comes a higher conversion rate, larger AOV, and a higher customer LTV.
How does Data-Driven Product Pairing boost eCommerce sales?
The benefits of data-driven product pairing are extraordinary. Customers respond to personalization, and being recommended exactly what you were looking for in a store can feel like a relief.
After all, it’s much easier to be recommended a few accurate products you need, rather than having to dig through hundreds of products you’re not interested in.
Let’s take a look at some of the areas that data-driven product pairing can help increase:
- Average Order Value
- Conversion Rate
- Engagement with marketing campaigns
- Customer LTV
Believe us, these four are just the beginning. Product pairing will revitalize the way your company does business, allowing your store to make intelligent recommendations and secure more sales.
By automating your selling process with Verfacto, you’ll earn yourself more sales without having to lift a finger.
Data-driven product pairing will analyze your user base and begin to recommend products that are statistically compatible to a certain customer.
Want to get started with data-driven product pairing? Then we’ve even got some great news! We’re offering a one-month free trial of Verfacto, letting you trial data-driven product pairing at absolutely zero cost to your business. What’re you waiting for?