Customer Want - Not Human Categories

A recommendation engine shows the customer's wants and not a human category. Humans are imperfect in defining a category. For instance, romantic comedy may be a category to market the film. It does not categorize the elements that the viewer will enjoy.

The elements that define a customer's likes are difficult to determine. It could be the resolution of the story, the amount of humor, the type of humor, the style of story telling, the amount of action, the level of dialog.

Instead of displaying the most popular rap albums for the year, the store through a recommendation engine can recommend the rap albums that the customer most likely will purchase. More interestingly, the store can display non-rap albums that a standard search wouldn’t reveal without predictive analytics.

Companies Leveraging Predictive Analytics

The list of companies who are finding the benefits of predictive analytics is growing. The benefits of improved profits and better customer experience make for sound business.

Capital One

Google

IBM

Pandora

Netflix

Apple iTunes genius

NKD

Kobo Books

Indigo Books

Fishpond

Lovefilm

YouTube

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