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Personalized digital marketing recommender engine

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  • Behera, Rajat Kumar
  • Gunasekaran, Angappa
  • Gupta, Shivam
  • Kamboj, Shampy
  • Bala, Pradip Kumar

Abstract

E-business leverages digital channels to scale its functions and services and operates by connecting and retaining customers using marketing initiatives. To increase the likelihood of a sale, the business must recommend additional items that the customers may be unaware of or may find appealing. Recommender Engine (RE) is considered to be the preferred solution in these cases for reasons that include delivering relevant items, hence improving cart value, and boosting customer engagement. The paper describes a model for delivering real-time, personalised marketing information concerning the recommended items for online and offline customers, using a blend of selling strategies: up-selling, cross-selling, best-in-class-selling, needs-satisfaction-selling and consultative-selling. The model further defines the e-marketplace by clustering items, customers and unique selling proposition (USP), and then gathering, storing, and processing transactional data, and displaying personalised marketing information to support the customer in their decision-making process, even when purchasing from large item spaces. An experimental study using a quantitative research methodology was conducted in a mid-size healthcare retailer, based out of India, to determine the tangible benefits. The model was tested with 100 online customers and, with the adoption of the proposed methodology, the results indicated growth in average monthly revenue (33.49%), Average Order Value (AOV) (32.79%) and Items per Order (IPO) (1.93%).

Suggested Citation

  • Behera, Rajat Kumar & Gunasekaran, Angappa & Gupta, Shivam & Kamboj, Shampy & Bala, Pradip Kumar, 2020. "Personalized digital marketing recommender engine," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:joreco:v:53:y:2020:i:c:s0969698918307987
    DOI: 10.1016/j.jretconser.2019.03.026
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    2. Rokonuzzaman, Md & Iyer, Pramod & Harun, Ahasan, 2021. "Return policy, No joke: An investigation into the impact of a retailer's return policy on consumers' decision making," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
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    5. Hallikainen, Heli & Luongo, Milena & Dhir, Amandeep & Laukkanen, Tommi, 2022. "Consequences of personalized product recommendations and price promotions in online grocery shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    6. Thaichon, Park & Phau, Ian & Weaven, Scott, 2022. "Moving from multi-channel to Omni-channel retailing: Special issue introduction," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    7. Tian, Xin & Cao, Shasha & Song, Yan, 2021. "The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    8. Ramazan Esmeli & Mohamed Bader-El-Den & Hassana Abdullahi, 2021. "Towards early purchase intention prediction in online session based retailing systems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(3), pages 697-715, September.
    9. Ebrahim Forghani & Reza Sheikh & Seyed Mohammad Hassan Hosseini & Shib Sankar Sana, 2022. "The impact of digital marketing strategies on customer’s buying behavior in online shopping using the rough set theory," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(2), pages 625-640, April.
    10. Lambillotte, Laetitia & Magrofuoco, Nathan & Poncin, Ingrid & Vanderdonckt, Jean, 2022. "Enhancing playful customer experience with personalization," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).

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