How do
Recommendation
Engines work?
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WHAT IS A
RECOMMENDATION
ENGINE?
A product recommendation engine is
essentially a solution that allows
marketers to offer their customers
relevant product recommendations in
real-time.
They use algorithms & data analysis
techniques to recommend the most
relevant products to a particular user.
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HOW DOES A
RECOMMENDATION
ENGINE WORK?
TYPICALLY, A RECOMMENDATION ENGINE PROCESSES
DATA THROUGH THE BELOW FOUR PHASES-
Collection
Storing
Analyzing
Filtering
1.
2.
3.
4.
THERE ARE MAINLY
THREE TYPES OF
RECOMMENDATION
ENGINES –
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1. COLLABORATIVE FILTERING
It is based on collecting & analyzing
information based on behaviours,
activities, or user preferences &
predicting what they will like based on
the similarity with other users.
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2. CONTENT-BASED FILTERING
They are mainly based on the
description of an item & a profile of the
user’s preferred choices.
3. HYBRID RECOMMENDATION SYSTEMS
They are essentially the combination of
diverse rating & sorting algorithms.
Netflix is an excellent example
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CHALLENGES
INVOLVED
WITH RECOMMEND
ATION ENGINES
Synonymous names
Scalability
Latency challenges
Privacy
Issue of sparsity
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ADVANTAGES OF
RECOMMENDATION
SYSTEMS
Enhance sales & average order value
Helps you deliver customized & relevant
content
Deliver a consistent brand experience
Drives website traffic
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RECOMMENDATION
ENGINE – USE CASES
& APPLICATIONS
eCommerce - Amazon
Video Streaming Services - Netflix & YouTube
Audio Streaming Platforms - Spotify
Machine learning in healthcare for better
analysis & deeper insights
1.
2.
3.
4.
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Knowledge-based apps such as Byju’s
Game recommendations in Xbox
Recommendations in financial services &
insurance products
Social connections recommendations by
Facebook or Instagram
5.
6.
7.
8.
INSIGHTFUL,
RIGHT?
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How do Recommendation Engines work?