Recommendation technology is useful for more than just the up-sell of products. When applied with creativity, recommendation engine technology can streamline virtually any experience. Our team has been using recommendation technology for nearly 20 years to optimize experiences for consumers, businesses, and even national security customers in areas such as the following:
Browsing, Search and Curation
One of the benefits of the Internet is that it minimizes distance, giving you access to more things, with greater immediacy. However, this make browsing and selection too big: it is one thing to browse a mall of 100 stores, it is quite another to browse an eCommerce store of 100 million items or two-sided market (i.e., virtual mall) of 20,000 stores. Recommendation technology—when combined with browsing, search and curation—can bring this massive selection back down to human-consumable scale. Instead of 100 million items, customers peruse the 100 best suited to them. Instead of 20,000 stores, they see the 10 that will provide the most rewarding browsing experiences. This is easier for consumers—and leads to higher sales conversion rates.
Similarly, recommendation technology can make matching more efficient as well. Instead of having to comb through thousands of potential partners, customers can browse a dozen. When recommendation technology is combined with machine learning, it can help create positive matches based on feedback from prior interactions. This is not just for dating sites. It is equally useful for B2B exchanges, supplier management, logistics, commodities trading and much more.
Customer Lifetime Value Optimization
Once you combine recommendation technology with customer relationship management, profiling and and payment systems information you have the means to optimize the value of every customer interaction. Recommend a price point that maximizes profitability. Bump higher-value callers ahead in the queue. Grant the minimum credit refund to retain that allows you to retain a customer who is seeking to cancel or terminate their relationship with your firm. Recommendation technology allows you to optimize the value of every customer interaction.
…And of course, Cross-sell and Up-sell
Obviously recommend technology is tremendously useful for selection of advertisements, placement into promotional campaigns and point-of-interaction cross-sell / up-sell of products. As more and more commerce and content are consumed via mobile devices, recommendation technology becomes even more important (as the mobile screen “footprint” often allows the opportunity to present only one advertisement or recommendation).
Our team has used recommendation technology for all of these benefits. In the past, this often required custom development. However, today’s open source technologies in Big Data, Complex Event Processing and Search enable much faster implementation of recommendation systems. We would be happy to work with your teams to reap these benefits—and discover new ones unique to your business.