increase basket value by offering better recommendations - vesa hyppönen, frosmo at frosmox16

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Beyond relevancy and accuracy in recommendations FrosmoX16 Vesa-Matti Hyppönen 24.10.2016

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Page 1: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

Beyond relevancy and accuracy in recommendations

FrosmoX16

Vesa-Matti Hyppönen 24.10.2016

Page 2: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

This is Mekbib

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● This is Mekbib and his 2 year old son● He is sitting outside in a cafe● His shirt is blue● Mekbib could not make it here today

This is all accurate, but not very relevant in current context

Page 3: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

This is Mekbib

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● This is Mekbib and his 2 year old son● He works at Frosmo in the customer

service function● I am his replacement as a speaker today● Mekbib could not be here because he

couldn’t not fit his hair into a passport picture

Accuracy without context and relevance could be misinformation

Page 4: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

You also need Relevancy

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• Google search for “The lion king” = 13 600 000 results

• All these documents have many occurrences of the word “The”

• Less frequent occurrences of “Lion” & “king”

• Teaching the recommendation machine to find relevant data

• To offset the abundance of “The”, we lower the weight by checking its term

frequency and inverse document frequency

Page 5: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

Tf-idf used to determine Relevancy

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Tf-idf is a weighting factor to show how important an item is related to the whole corpus

Page 6: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

Why is Accuracy + Relevancy != Enough?

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• Recommendations can produce accurate and relevant info but be useless

• Because it fails the test of obviousness

• Because it fails to give the users any new info

• Wasting valuable screen estate, resources and money

• Factor in previous user interaction on site

Page 7: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

We need to add the element of novelty & serendipity

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• Novelty = Recommending undiscovered items

• Serendipity = Measure of how the items are attractive and surprising to the

user

• Unexpectedness and usefulness

• Judged from subjective perspective

Page 8: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

How to measure serendipity?

Collaborative filtering

- Memory based, easier, neighbourhood based

- Model based, more complex - non obvious

Neighborhood based automatic

collaborative filtering using pearson correlation

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Page 9: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

Conclusion

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• Obvious recommendations

• Waste space by fail to introduce new items or giving users information

they already know

• Make user blind to website real estate

• Recommendations should rise beyond accuracy and relevancy

• They should be novel and serendipitous as well

• Technically challenging but will self adust user classification

• Don’t forget to A/B test - results might be surprising

Page 10: Increase basket value by offering better recommendations - Vesa Hyppönen, FROSMO at FrosmoX16

Thank You

www.frosmo.com

Vesa-Matti HyppönenDeveloper

[email protected]

+358 50 3625734