Recommender systems or recommender machine aim to predict users’ interests and recommend product items that quite likely are interesting for them. They are among the most powerful machine learning systems that online retailers implement in order to drive sales. Data required for recommender systems stems from explicit user ratings after watching a movie or listening to a song, from implicit search engine queries and purchase histories, or from other knowledge about the users/items themselves.
Companies using recommender systems focus on increasing sales as a result of very personalized offers and an enhanced customer experience. Recommendations typically speed up searches and make it easier for users to access content they’re interested in, and surprise them with offers they would have never searched for. The user starts to feel known and understood and is more likely to buy additional products or consume more content. By knowing what a user wants, the company gains competitive advantage and the threat of losing a customer to a competitor decreases.
Netflix is an internet streaming software which allows you to watch content through any internet connected device which include smart TVs, smartphones, tablets, game consoles etc. Netflix has 164 million subscribers globally. Target customers are:
To get as much subscribers by improving the customer experience of their entertainment services. They try to get as much people to watch their content with unlimited hours.
As this assignment is based on Recommender systems, Netflix is continuously learning from the data which it collects from its viewers and uses that to optimize the business processes and of course recommender system as this is the best way to better understand their customers indirectly.
Netflix recommender system is based on collaborative filtering therefore they need a certain amount of data to understand it before making recommendations. Collaborative filtering tackles the similarities between the users and movies to perform recommendations; meaning that the algorithm constantly finds the relationships between the users and in-turns does the recommendations. When users sign up, the software usaually require the individual to choose a few shows to jump start their recommendations. They learn about the customer’s preference based on:
Presently, Neflix are doing a great job. However, there could be another way to increase engagement, besides design tricks, algorithms, and inter-episode ads? Here are a few ideas that could help them improve: