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Scenario for Product Recommendations

This topic gives one example of how product recommendations might be used. You might use product recommendations differently, depending on your business model.

A marketing administrator is defining recommendations associated with a 2.0 megapixel digital camera. The product administrator has already defined this product and related products. The marketing administrator is creating recommendations for products that have been defined.

Market research has shown that it is often possible to persuade customers to buy a 3.2 megapixel camera instead of a 2.0 megapixel camera by telling them that higher resolution is needed to print full-sized pictures. The marketing administrator defines a recommendation associated with the 2.0 megapixel camera that has the values:

• Message Type. Upsell Recommendation.
• Recommended Product. 3.2 megapixel camera that is in the same product line as the 2.0 megapixel camera.
• Message. Higher resolution allows you to print pictures up to 8' x 10'.
• Score. 20. (This value is the highest number in this marketing administrator's scoring system. It is possible to use higher numbers as scores. Without configuration, the accepted scores are 0 to 100.)

Market research has also shown that it is often possible to persuade customers to buy extra memory cards with their digital cameras by telling them that more memory is needed to store large numbers of pictures. The marketing administrator wants this recommendation to be high on the Messages list but lower than the upsell message, because customers must decide what camera they want before they decide what size memory card they want.

For the 2.0 megapixel camera, the marketing administrator recommends a small memory card by defining a recommendation with the values:

• Message Type. Cross-sell Recommendation.
• Recommended Product. 8 megabyte memory card that is compatible with the 2.0 megapixel camera.
• Message. An extra memory card is needed to store more than 20 pictures.
• Score. 19.

The marketing administrator goes on to define more recommendations for other products. In addition, the marketing administrator defines a product promotion that offers a 5 percent discount if you buy both a 2.0 megapixel camera and a memory upgrade.

A customer who has seen the 2.0 megapixel camera in a catalog telephones to order it. The call center representative creates an order for the customer and adds this camera as a line item.

The sales representative sees the first recommendation in the Messages list and suggests that the customer may want to buy a 3.2 megapixel camera instead, to print 8x10 pictures. The customer says that it is not necessary to print such large pictures. The sales representative clicks Reject.

The sales representative looks at the recommendation that is now at the top of the Message list and suggests the customer may want to buy a memory card to store more than twenty pictures. The customer agrees that it may be necessary to store more pictures. The sales representative clicks Accept to add the memory card to the order.

The customer now qualifies for the promotional discount for buying this camera and memory card. A recommendation appears in the messages list saying the customer is eligible for this promotion. The customer is glad to receive the discount, and the sales representative clicks Accept to add the product promotion to the order.