As discussed in my earlier article, sending recommendations to users buying anything is very crucial. And if set up and configured properly, it can significantly boost revenues, CTRs, conversions, and other important metrics. Moreover, they can have positive effects on the user experience, as well, which translates into metrics that are harder to measure but are nonetheless of much importance to online businesses, such as customer satisfaction and retention.
Let's consider an example to better understand the concept of a recommendation engine. If I am not wrong, almost all of you must have used Amazon for shopping. And just so you know, 35% of Amazon.com's revenue is generated by its recommendation engine. So what's their strategy?
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