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Product Recommendation System (ML)

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9 views

Product Recommendation System (ML)

Uploaded by

mrnags430
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PRODUCT RECOMMENDATION SYSTEM USING

MACHINE LEARNING

1. Objective
The objective of the Product Recommendation system is offering tailored product
recommendations. The Product Recommendation system seeks to improve the user experience
for customers on the site. This method seeks to improve engagement, raise conversion rates,
and eventually enhance sales by examining consumer behavior, preferences, and interaction
patterns. Creating a smooth, customer-focused buying experience that not only satisfies user
demands but also cultivates enduring client loyalty is the aim.

2. Problem Statement
Customers frequently struggle to locate pertinent goods in a large product catalog, which
reduces engagement and results in lost sales chances. Creating a scalable, effective
recommendation system that can precisely recommend goods based on each customer's tastes
and historical behavior is a challenge. In order to improve customer satisfaction and boost
income for the company, this system should be able to manage massive volumes of data, adjust
to changing client preferences, and provide actionable insights in real time.

3. Business Impact
The product recommendation's goal is by making tailored product recommendations, the
Product Recommendation system aims to improve consumer satisfaction and boost sales. The
technology improves customer happiness and loyalty by surfacing content that are relevant to
each user based on an analysis of their behavior and preferences.

Advantages for Participants

● For Customers: Provides a customized shopping experience that makes it easy and
pleasurable for customers to find items they are likely to buy.

● For the Business: Promotes higher-value transactions and cultivates client loyalty
through tailored recommendations, which boosts revenue.
● Operational Improvements: Enables targeted marketing and effective inventory
management by leveraging knowledge from suggestion trends.

Key Performance Indicators (KPIs) to Monitor Suggestions for Success

● Click-Through Rate (CTR): Monitors how often customers click on suggested items.
● Conversion Rate: Indicates what proportion of consumers buy products based on
recommendations.
● Average Purchase Value: Keeps track of the typical transaction value when consumers
interact with suggestions.
● Customer Retention Rate: Indicates how the system affects customer loyalty by
looking at the rate of repeat purchases.
● Customer Lifetime Value (CLV): Calculates the potential long-term income from clients
who are impacted by tailored recommendations.

4. Machine Learning Techniques

Overview of Techniques
The recommendation system utilizes advanced machine learning techniques for accurate
product suggestions:

● Collaborative Filtering: Analyzes user behavior and preferences by finding similarities


among users or items.
● Content-Based Filtering: Suggests products based on the properties of items that a
customer has shown interest in previously.
● Hybrid Models: Combines collaborative and content-based approaches for more
accurate and versatile recommendations.

Rationale for Selected Technique


A hybrid model is selected to leverage the strengths of both collaborative and content-based
methods, balancing personalization accuracy with data coverage. This approach is scalable and
adaptable to different customer behaviors and product types.

5. Python Implementation Steps


Data Preprocessing
Data preprocessing includes cleaning, handling missing values, normalizing data, and feature
engineering to prepare inputs for the machine learning model.

Modeling Steps
● Model Training: Code scripts are developed to train the model on historical data using
algorithms suited for recommendations.
● Hyperparameter Tuning: Optimization techniques are applied to find the most effective
parameters for model accuracy.
● Evaluation: Key metrics like precision and recall are calculated to measure model
performance.

Python Libraries

● pandas: For data handling and preprocessing.


● scikit-learn: For machine learning algorithms and model evaluation.
● TensorFlow/PyTorch: For deep learning models in hybrid recommendations (if
applicable).

6. Algorithm Details
Selected Algorithm

● Collaborative Filtering: Uses k-Nearest Neighbors (k-NN) to identify similar users or


items, based on past behavior.
● Matrix Factorization: Utilizes techniques like Singular Value Decomposition (SVD) for
dimensionality reduction, allowing the model to handle large datasets efficiently.
● Neural Network-Based Models (Optional): Uses deep learning techniques for
complex, hybrid recommendations.

Data Flow and Output Structure


The algorithm processes input data and generates a ranked list of recommended products for
each user. This output is passed to Power BI Fabric for integration into the reporting layer.

Evaluation Metrics

● Precision and Recall: Metrics to assess recommendation relevance and accuracy.


● F1 Score: A balanced measure combining precision and recall.
● Mean Absolute Error (MAE): Measures the average error between predicted and actual
ratings or selections.

7. Power BI Fabric Integration


Overview of Power BI Fabric
As a layer for intermediate data processing, Power BI Fabric controls the ML model's output and
gets it ready for visualization. Efficient data management and smooth integration into Power BI
dashboards are made possible by this phase.

Data Flow

Power BI Fabric receives the output (product suggestions) from the machine learning algorithm.
In order to filter, aggregate, and prepare user-focused insights, Power BI Fabric processes the
data.

8. Power BI Reports
Design and Structure of Reports

Real-time insights from the recommendations are shown in the Power BI reports. Important
elements consist of:

Suggested Items Dashboard: A glimpse of each user's recommended products in real time.

Engagement Metrics: Conversion rates, CTR, and other KPIs are displayed visually.

Sales Impact Report: Displays data on income produced from suggestions, average purchase
value, and customer retention trends.

Utilized Visualizations

Charts: To show patterns in conversion and recommended engagement.

Tables: For comprehensive information on product recommendations and customer analytics.

Filters: To customize dynamic reports according to product categories, user demographics, or


time periods.

Automation

Power BI Fabric dynamically updates reports as new data is processed, guaranteeing that
insights are always up to date and useful.

9. System Architecture Overview


The architecture of the Product Recommendation system follows a clear workflow:

1. Data Input: Customer interaction data is collected and preprocessed.


2. ML Algorithm: The data is fed into the ML model, which generates product
recommendations based on learned preferences.
3. Power BI Fabric: Processes the ML output for reporting, applying data transformations
for efficient visualization.
4. Power BI Reports: Displays user-friendly dashboards with recommendations and KPIs
for stakeholders to review.

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