6 Amazing Use Cases of Recommendation System

Updated on Jan 5th, 2024

Use cases of Recommendation System

While surfing on the web or looking at your favorite site, you might have noticed some usual messages or suggestions like:

  • Products you may like
  • People are also searching for
  • Customers who bought this also bought

All these are examples of personalization that brands offer to their valuable customers. And how do they do it? Simple, with a recommendation system!

In today’s competitive world, recommendation system development has become a hot topic for global industries whether we talk about getting favorite food recommendations from a restaurant or getting suggestions on new clothes, only the brands delivering personalization benefit from the ever-growing digital market. 

That’s the main reason businesses worldwide are making use of AI-based recommendation systems to enhance their customer experience and stand apart from the crowd. The recommendation system helps the companies engage their users to remain on their site for a longer time. As a result, with higher times, the CTR (click-through-rates) increases, resulting in higher ad revenues and in-app purchases. 

Clearly, machine learning and AI advances have facilitated innovations and boosted many businesses’ customer experience. That’s why leading businesses across the globe have actively invested in a custom recommendation system. Let’s explore more with these six exceptional use cases!


Where Are Recommendation Systems Used?

Here are the top six most popular use cases of recommendation systems that will help you decide better on recommendation system development.  

1. E-commerce

The first and foremost industry where a recommendation system has emerged as the most helpful and user-friendly tool is e-commerce. Talking about Amazon, for instance, the company has efficiently valued the role of AI in retail, and that’s why smart recommendations have become their core part. From the customer’s misspelled words to identify the products from relevant keywords, the smart recommender engine of Amazon does it all.

Apart from accurate search results, this smart recommendation system from Amazon even categorizes your products and offers similar suggestions to the customers. The personalized recommendations offered to the customer can even be further filtered based on ratings, availability, product type, and so on. 

Eventually, the customers get personalized suggestions and instant results even on their most basic queries, enhancing their shopping experience. 

And, that is not all! As per McKinsey, 35% of Amazon’s revenues are generated due to its recommendation system!

eCommerce Recommendation System Development

2. Retail

Another global sector that has been benefiting from recommendation systems is retail. And why not? With advanced searching and upselling options, a recommender engine has become the first and foremost choice for many leading retail businesses. Apart from smart recommendations, the recommendation system also offers a convenient way to search for the products. With voice commands or keywords, the users can seamlessly access any products they wish to purchase.

Not only that, but a custom recommendation system even helps the business in upselling their products while enhancing the customer services. The recommender engine analyzes the customer behavior and shopping patterns and eventually offers them deals that they cannot refuse. That way, the business and the customers both benefit from a recommendation system.

And have we mentioned the role of the recommendation engine in making your marketing campaigns successful? With a custom recommendation system, you can seamlessly target your market campaigns to the most result-oriented places and audiences. A sure-shot way to earn better leads and revenues! 

Recommendation System in Retail

3.Media and Entertainment

Well, who doesn’t know the smart suggestions offered by Youtube, Netflix, and Spotify! All these prominent media and entertainment platforms have lured millions of users towards their services using a smart AI-based recommendation system. From assisting you in curating your playlist to offering your smart suggestions based on your past interactions, the recommendation system offers everything to the users. 

For instance, if you have watched any sci-fi movie or web series in the past on Netflix, then the platform will suggest the most relevant movies and web series using smart machine learning algorithms. That will eventually engage your customers and will keep them more on your platform.

Content Recommendation System

4.Social Platforms

Apart from the global market’s leading sectors, the social media industry is also gaining huge momentum because of recommendation system development. Leading players like LinkedIn, Facebook, and Instagram are leveraging a custom recommendation system’s smart capabilities to provide personalized suggestions to their users. 

Messages like ‘You may like,’ or ‘You may also know” helps the user discover similar pages/accounts of the people they are interested in. That way, the user could better explore the platform and spend more time initiating increased click-through rates and ad revenues. Many other questionnaire platforms like Quora also use the same recommender engine mechanism to engage their users and enhance the customer experience.

5.Content Searching Platforms

Have you ever noticed that while accessing the search giant Google or watching the videos on Youtube, you get automated suggestions based on your search? That’s what a recommendation system does on the content searching platforms! For the business involved in content marketing, recommendation system development has emerged as a great tool for advertising and customer engagement.

By offering features like voice-based searches, search by image, or search by relevant keywords, the recommendation system enhances the user’s searching experience. Apart from that, the smart ML-based solution also offers personalized suggestions to the online audiences to access more effective content and stay on the platform for a longer time. 

Clearly, recommendation systems have benefitted almost all the major and even the minor sectors of the market. 

At least, that’s what Youtube says! A statement by Youtube reveals that 60% of their clicks increased after the implementation of the recommendation system.  

6.Banking and Finance

Finally, we have the banking and finance industry benefiting from the amazing services of the recommendation system. Many leading banks like American Express are today leveraging custom recommendation systems to enhance their services and provide personalized financial suggestions to their users.

By carefully analyzing the user needs and past activities, the smart machine learning-based recommendation systems first understand the clients’ expense pattern. After it is done, the recommendation system offers the most efficient finance plan to the customers that could help them save a lot of money and eventually safeguard their future. 

Also Read: Financial Software Development: A Complete Guide

With such a perfect banking and finance plan, the users could not resist, and in such ways, the banks’ final sales target is achieved while satisfying their clients. Do you still need more reasons to invest in recommendation system development?

Implement AI based Recommendation System

How Can Matellio Help?

It is no doubt today that the advances in AI and the repaid use of recommendation systems has made many businesses succeed in today’s competitive market. While the recent advances may bring many new and improved changes, the current scenario demands custom recommendation system development for the business seeking profitability and innovation. 

That’s where Matellio comes to play!

With years-long experience, we, at Matellio, are always the leading choice for enterprises in AI development services. From conversational chatbots to smart recommendation systems and even RPA, our digital transformation services are trusted by thousands of leading businesses worldwide. That’s why leading firms like Clutch have always admired us for delivering cost-effective and scalable custom software solutions to many industries. 

So, why wait for the perfect turn when you can start transforming your business idea into a reality today! Reach us and get a fully customized and feature-rich recommendation system perfect for your business. Plus, get a free consultation from our experts for your next big business idea on filling our consultation form.

Till then, Happy Reading!  

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