To assess the effectiveness of your recommendations, three key metrics provide valuable insights:
User Rate
The User Rate reflects the proportion of visitors who interact with at least one recommendation.
How it’s calculated: It is expressed as the percentage of visitors who click on a recommendation out of the total number of website visitors.
Why it matters: A high User Rate indicates that your recommendations are relevant and engaging for your audience.
Weight in Revenue
The Weight in Revenue metric highlights the contribution of recommendations to your total revenue.
How it’s calculated: It measures the portion of overall income that can be directly attributed to sales driven by recommendations.
Why it matters: This metric helps you understand the financial impact of recommendations on your business, demonstrating their value in generating income.
Revenue/User Impact
The Revenue/User Impact evaluates the incremental sales generated per user through recommendations.
How it’s calculated: It represents the increase in revenue attributable to recommendations for each user who interacts with them.
Why it matters: This metric provides insights into the average revenue boost driven by recommendations, helping to assess their effectiveness in driving sales growth.