Product Recommendation System

Problem statement

In the recommendation system the problem is trying to forecast the opion the users will have
on the dissimilar substance and be able to recommends the finest items to each user. Another
some problems in recommendation system are data sparsity, scalability and gray sheep.

Abstract:

In today's world, we find a wide variety of search options and we may have difficulty
selecting what we really need. The recommendation System plays an important part in
dealing with these problems. A recommender system is a framework that is a filtering system
that filters the data with various algorithms and recommends the user with the most relevant
data. Recommendation systems are productive customization mechanisms, often up to-date
and recommendations based on current consumer preferences. These systems have shown to
be extremely helpful in different areas of e-commerce, education, movies, music, books,
films, scientific papers, and various products. This paper reviews many approaches of
recommendation techniques with their upsides and downsides and diverse performance
measures. We have reviewed various articles, analyzed their technique and approach, major
features of the algorithm utilized, and potential areas for improvement in that research work.

Keywords: Recommendation system, collaborative, hybrid, content-based, machine learning

What is a product recommendation system?

A product recommendation system is a combination of machine learning models that are

capable of matching the right services and products with the right clients at the right time, so

as to increase sales, customer engagement and to improve customer experience.

Where product recommendation system can be used

There are various ways to use product recommender system

The most popular ones are:
1. Online stores. Home page “trending or most popular products”, cart page “people also
bought”, product pages “these products are frequently bought together”.
2. Bricks and mortar stores. Screen terminals at the entrance where a customer can scan
their loyalty card and receive personalized recommendations on the terminal screen,
or PoS screen, and the client screens at the checkout counter where a cashier either
suggests buying a specific product or a client sees the recommendations.
3. Telemarketing and call centers. The model can suggest which products to offer to
which specific customers at what specific point of time. One of our clients managed to
generate even as much as 150% growth in telemarketing sales efficiency.
4. Marketing campaigns like email marketing and banner ads.

➢ Advantages Of Recommendation Systems

Among the key advantages of recommendation, engines include –

• Enhance Sales & Average Order Value

One of the excellent methods to increase your revenue and average order value (AOV) is to
encourage your website visitors to add recommended products and offerings at the checkout
page.

• Helps You Deliver Customized And Relevant Content

One of the most efficient ways for any brand to meet customer expectations is to build
customized and relevant content. Recommended system allows brands to personalize the
customer experience and make suggestions for the items that make the most sense to them.

• Deliver A Consistent Brand Experience

Recommendation engine AI can be key to creating a consistent brand experience by simply

drawing data from various channels. It allows you to optimize your omnichannel customer
experience and make customers feel part of an ongoing journey instead of starting afresh with
each interaction.

• Drives Website Traffic

Using a recommendation engine allows you to bring targeted traffic to your website. The
recommender system can achieve this with specifically targeted blasts and personalized email
messages.

➢ Recommendation System – Use Cases And Applications

• Amazon.com

Amazon.com is an excellent example that uses item-to-item collaborative filtering

recommendations in most of the pages on their website and email campaigns. A report
by McKinsey suggests that 35% of Amazon purchases are based on recommendations
systems.
 • Alibaba.com

Another e-commerce giant, Alibaba.com, uses a trusted recommendation system to dominate

the e-commerce market. The company leverages AI-powered recommender systems capable
of receiving data points from a new customer’s purchase history somewhere else and
matching it with similar kinds of products available in their platform.

• YouTube

YouTube is another video streaming giant with a powerful recommendation system with
sophisticated algorithms to filter content based on customer’s browsing history, age of
videos, search terms, and more.

• Netflix

Netflix is a popular name that leverages recommendation systems to boost customer

satisfaction. The video streaming giant uses robust predictive knowledge about which genre
of movies/ series customers are likely to watch next, ensuring that their customers remain
loyal and do not switch over to the competitors.