WSJ recently published a very interesting article – We Know What You Ought
To Be Watching This Summer – on how insights gained from data and consumer activity can be very effectively used to make recommendations.
Interesting quote from the article – “How do we help you find the things you had no idea you’re looking for?” expresses a data mining application so nicely.
In another quote from this article,
“The point is to come up with recommendations that “may be non-intuitive but surprisingly enjoyable nonetheless,” says a spokesman. Since adding the software, Blockbuster says it has lost fewer customers, in percentage terms, to rival services, and the number of movies in the average customer’s “to watch” list has grown by almost 50%.”
This shows how effective these systems are in improving sales and customer retention.