Trust matters a lot to people, as shown in studies and surveys like one recently discussed by Ipsos. “Ultimately, building trust can make the difference in purchasing one product over another,” Ipsos’ Michael Gross wrote. “In order to do this, companies need to work on the “front end” of trust – they need to assess the expectations of consumers and stakeholders, then consistently deliver through performance in order to build up trust.”
One way trust can deliver for online sellers comes in the form of recommendations. Word of mouth from trusted sources like family or friends is one example; product reviews are another.
Also, online sellers can derive recommendations from the data they gather from site visitors. Interest in one product category represents an opportunity to present upsell and/or cross-sell recommendations.
According to digital marketing firm Monetate, recommendations can benefit ecommerce pros in three ways:
- Vendors self-reported benefits from recommendations at up to 300 percent increases in revenue, conversion rates rising up to 150 percent, and average order values rising as much as 50 percent;
- On average, it has been estimated between 2 and 5 percent of total website revenue can be attributed to recommendations (and perhaps even as high as 20 percent);
- 15 percent of US online adults have purchased a product based on a recommendation.
Working recommendations into one’s website is a functional aspect of many sellers now. In Internet Retailer’s Top 500, the top ten sites utilize recommendations. In one prime example, Amazon.com has used as much as nearly three-quarters of its homepage to present recommendations to visitors, something easily observed today.
Small sellers shouldn’t assume they can’t emulate Amazon’s recommendations – third-party vendors such as 4-tell.com offer personalized cross-sell and up-sell recommendations “for retailers of all sizes on any ecommerce platform,” including 3dcart, aspdotnet, BigCommerce, Volusion and Magento.