Part – III Improve Recommendations
Question 1
In the field of analytics, it is important to have the success metrics defined to have
an efficient use of the parameters. The following illustrated is one of the key
metrics which would measure the recommendations’ success.
Number of clicks / Session on the products in the recommendations’
section
It should be understood that, irrespective of whether the customer actually
purchases the product using the suggestions from the recommendations, a click
represents success. When a customer clicks on a product which can be found in the
recommended section, the following may be outcomes of the action
1. Customer may actually purchase the same product. The product which the
customer wanted to buy may be the same shown in the recommendation
section
2. Customer never had the idea to purchase the specific product, but wanted
to buy after seeing the product
3. Customer may be looking for a product companion
4. Customer may be looking to purchase a product which is different color, size
or model
5. Customer would like to learn more about the product
6. Customer may be simply window shopping
Each of the six attributes listed above may result in profitability for the company.
Therefore, number of clicks per session is considered as a success metric. Each of
the attribute can actually be converted to another based on the demand and the
analysis in future. Each click contributes to the total success value. The total
number of clicks per session should be monitored in detail which would be used to
build model that would evaluate the success percentage and hence can be helpful
in changing and updating the recommended section accordingly.
Question 2
Visit 1 (First time customer)
Recommended section would have the initial
list of products which are selected based on
the process outlined in the Part II
Visit 2
The process would include, companion
products and the products would be selected
based on the other parameters
Visit 3
Model would analyze the trend, and would
elevate the customer status, the products
would change accordingly
Visit 4
Discounted products and items would be
enlisted making Tony, a valuable customer
“It becomes important to note that, the number clicks would play an important
right from the beginning of the process”. It is important to understand that the
clicks in the recommendation section would directly contribute to profitability”