Tuesday, April 5, 2016

When “people did not buy this”

In a “people who bought this also bought that” world, what do we do if nobody bought this product before?
The E-Commerce world is driven by new product introductions. Amazon, for one, introduces close to a ½ million products on average each day. So, what should a retailer do when a new product is introduces and purchased by a new customer? What should they recommend next when the old “people who bought this…” is not applicable?
This is not a new issue and was raised already back in the 1990’s when Collaborative Filtering (the statistical model behind the “People who bought this… tool) was introduced to the market. This issue forced data companies and retailers to use alternative basic recommendation methods, like, category based and the like alongside the more sophisticated model.
But, say, we recommended products not based on what other people. What if we knew why they buy and base our recommendations on the psychological and behavior profile of the shopper? And, what if we created a psychological profile of every new product and matched the product profile to the shopper’s profile? Well, I believe that would be a perfect world. Welcome to the world of Cognilyze.