Every time you shop online you encounter machine learning recommendation systems whether you recognize it or not. These systems are tools that filter stored information within the site about products, their costs, and services that can be provided and make a prediction based on a user’s search history what he or she may like.
These systems will often say something like, “You may also like,” “Customers who bought the same thing also bought,” or “Because you viewed this show, you may also like this one.” They are used on all major domains such as the media and entertainment industry with Netflix and Pandora being two examples, eCommerce with Amazon and Facebook Marketplace being two examples, education with sites like Udemy as an example, real estate with websites like Apartment Finder being one example, travel with services like Airbnb and Expedia being two examples, and job searches like the many job websites that send you recommended jobs or professional social media like LinkedIn. The use of machine learning recommendation systems within your eCommerce business can boost your sales and increase your profits, so it is important to understand the benefits and uses of these systems.
Why Should I Use An ML Recommendation System?
Using a machine learning recommendation system is not only for product recommendation. If product sales are your business, then it naturally fits, but if your business focuses on something else, you may be wondering just how machine learning recommendation systems may fit into your business.
You can use a machine learning recommendation system for listings categories on your website which makes your listings more searchable by adding more descriptions. You can also use it for product recommendations from real users which keeps your customers coming back to purchase other products. This is beneficial to you because not only are they buying more products right away, but it also helps with customer loyalty and retention.
Another way that a machine learning recommendation system helps your business is through price suggestions. This is how you show your customers that you have the best price or at least a fair price which will allow you to increase your profits and reduce customer abandonment.
What Are The Benefits?
Using a machine learning recommendation system to analyze your customer’s purchasing patterns allows you to send them real-time targeted notifications. This will boost your sales because they will be more inclined to purchase more based on the very specific specialized offers that are relevant to their individual tastes.
If you are looking to grow your online business, a machine learning recommendation system may be a very valuable tool for you. This will allow you to analyze the trends of your customers to complete important goals. After understanding the trends of certain demographics of customers your machine learning recommendation system can recommend specific products to them based on their search history, show them products that people who purchased the same items as them bought in order to get them to buy other products, easily show other customer feedback to give your customers more peace of mind and belief in your product based on the views of other real customers, and send your customers personalized targeted messages with specialized deals that will get them to purchase more than they would have on their own. These are all proven tactics that will help grow your business once implemented using a machine learning recommendation system.