We Have a Recommendation

A recommendation engine is a system that uses data analysis to suggest products, services, and information to users. In today’s world, these systems take data about user experiences, behaviors, preferences, and interests and put it to use saving consumers from the perils of information overload. The most obvious benefit of a recommendation engine is that it adds value to companies by improving user experience and visibly increasing revenues, click rates, and customer satisfaction. Netflix is one of the platforms where this effect can be seen most clearly. Thanks to its recommendation engine, Netflix users don’t have to browse through thousands of titles every time they want to watch something. Instead, they are presented first with the content that Netflix thinks will interest them the most, based on their viewing history—thus saving users’ time, ensuring a satisfying user experience, and saving Netflix about a billion dollars a year through customer retention. Although recommendation systems have been used by companies such as Amazon for nearly 20 years, it has only been in the past few years that companies in other sectors, such as finance and travel, have begun to wake up and take note.