Top 5 Use Cases of a Recommendation System

Recommendation system
  1. Improving Customers Engagement: Recommendation system can drastically improve customers’ experience. It provides customers with the list of relevant products by numerically estimating their preferences. This in turn provides you with better customer engagement while influencing the customer retention rate positively.
  2. Increasing Product Reach: Recommendation system lets the users get to know about the products they have high probability to like. For instance, if one prefers watching action genre on Netflix, its recommendation system automatically offers a list of similar digital products. In this way, it increases the reach of the products which wouldn’t have been visible otherwise.
  3. Enhancing Digital Visibility of Products: Recommendation system is highly efficient in enhancing visibility of various products. For instance, if a customer buys a blue colour dress on Amazon, its recommendation system will automatically show other dresses of the same colour or pattern. The collaborative, content-based, and demographic-based filtering enables a recommendation system to improve digital visibility of various products considerably.
  4. Ad Targeting: Recommendation system works excellently as a targeting tool for online advertisement. As it is capable of tracking and analysing customers’ preferences, it helps in targeting proper audiences for different digital products and services.
  5. Increasing Sales: Once you integrate a good recommendation system for your digital store, it will increase your sales in multiple ways. A recent Mckinsey study stated that more than half of the views in Netflix is driven by recommendations. This gives an estimation of how a recommendation system can increase your sales and profitability.

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