Most of the research in the recommender systems domain is focused on the optimization of the metrics based on historical data such as Mean Average Precision (MAP) or Recall. However, there is a gap between the research and industry since the leading Key Performance Indicators (KPIs) for businesses are revenue and profit. In this paper, we explore the impact of manipulating the profit awareness of a recommender system. An average e-commerce business does not usually use a complicated recommender algorithm. We propose an adjustment of a predicted ranking for score-based recommender systems and explore the effect of the profit and customers' price preferences on two industry datasets from the fashion domain. In the experiments, we show the ability to improve both the precision and the generated recommendations' profit. Such an outcome represents a win-win situation when e-commerce increases the profit and customers get more valuable recommendations.
Traditional recommendation systems make recommendations based solely on the customer's past purchases, product ratings and demographic data without considering the profitability the items being recommended. In this work we study the question of how a vendor can directly incorporate the profitability of items into its recommender so as to maximize its expected profit while still providing accurate recommendations. Our approach uses the output of any traditional recommender system and adjust them according to item profitabilities. Our approach is parameterized so the vendor can control how much …
TU Dortmund（多特蒙德工业大学）；University of Minnesota（明尼苏达大学）
Academic research in the field of recommender systems mainly focuses on the problem of maximizing the users' utility by trying to identify the most relevant items for each user. However, such items are not necessarily the ones that maximize the utility of the service provider (e.g., an online retailer) in terms of the business value, such as profit. One approach to increasing the providers' utility is to incorporate purchase-oriented information, e.g., the price, sales probabilities, and the resulting profit, into the recommendation algorithms. In this paper we specifically focus on price- and…
e-Profits: A Business-Aligned Evaluation Metric for Profit-Sensitive Customer Churn Prediction
ADAPT Centre（ADAPT中心）；Faculty of Business, Technological University Dublin（技术大学都柏林商学院）；Department of Computer Science and Information Technology, University College Cork, Ireland（科克大学计算机科学与信息技术系）
Recommender Systems are a subclass of machine learning systems that employ sophisticated information filtering strategies to reduce the search time and suggest the most relevant items to any particular user. Hybrid recommender systems combine multiple recommendation strategies in different ways to benefit from their complementary advantages. Some hybrid recommender systems have combined collaborative filtering and content-based approaches to build systems that are more robust. In this paper, we propose a hybrid recommender system, which combines Alternating Least Squares (ALS) based collaborat…
Any organization needs to improve their products, services, and processes. In this context, engaging with customers and understanding their journey is essential. Organizations have leveraged various techniques and technologies to support customer engagement, from call centres to chatbots and virtual agents. Recently, these systems have used Machine Learning (ML) and Natural Language Processing (NLP) to analyze large volumes of customer feedback and engagement data. The goal is to understand customers in context and provide meaningful answers across various channels. Despite multiple advances i…
A large number of empirical studies on applying self-attention models in the domain of recommender systems are based on offline evaluation and metrics computed on standardized datasets, without insights on how these models perform in real life scenarios. Moreover, many of them do not consider information such as item and customer metadata, although deep-learning recommenders live up to their full potential only when numerous features of heterogeneous types are included. Also, typically recommendation models are designed to serve well only a single use case, which increases modeling complexity …
Customer retention campaigns increasingly rely on predictive models to detect potential churners in a vast customer base. From the perspective of machine learning, the task of predicting customer churn can be presented as a binary classification problem. Using data on historic behavior, classification algorithms are built with the purpose of accurately predicting the probability of a customer defecting. The predictive churn models are then commonly selected based on accuracy related performance measures such as the area under the ROC curve (AUC). However, these models are often not well aligne…
The number of reviews on Amazon has grown significantly over the years. Customers who made purchases on Amazon provide reviews by rating the product from 1 to 5 stars and sharing a text summary of their experience and opinion of the product. The ratings of a product are averaged to provide an overall product rating. We analyzed what ratings score customers give to a specific product (a music track) in order to build a recommender model for digital music tracks on Amazon. We test various traditional models along with our proposed deep neural network (DNN) architecture to predict the reviews rat…
Automated recommendations can nowadays be found on many e-commerce platforms, and such recommendations can create substantial value for consumers and providers. Often, however, not all recommendable items have the same profit margin, and providers might thus be tempted to promote items that maximize their profit. In the short run, consumers might accept non-optimal recommendations, but they may lose their trust in the long run. Ultimately, this leads to the problem of designing balanced recommendation strategies, which consider both consumer and provider value and lead to sustained business su…
We propose a method for building an interpretable recommender system for personalizing online content and promotions. Historical data available for the system consists of customer features, provided content (promotions), and user responses. Unlike in a standard multi-class classification setting, misclassification costs depend on both recommended actions and customers. Our method transforms such a data set to a new set which can be used with standard interpretable multi-class classification algorithms. The transformation has the desirable property that minimizing the standard misclassification…
Shanghai Jiao Tong University（上海交通大学）；University of Technology Sydney（悉尼科技大学）；Ctrip.com International Ltd（携程国际有限公司）
At present, most research on the fairness of recommender systems is conducted either from the perspective of customers or from the perspective of product (or service) providers. However, such a practice ignores the fact that when fairness is guaranteed to one side, the fairness and rights of the other side are likely to reduce. In this paper, we consider recommendation scenarios from the perspective of two sides (customers and providers). From the perspective of providers, we consider the fairness of the providers' exposure in recommender system. For customers, we consider the fairness of the …
Probabilistic matrix factorization (PMF) is a well-known model of recommender systems. With the development of image recognition technology, some PMF recommender systems that combine images have emerged. Some of these systems use the image shape features of the recommended products to achieve better results compared to those of the traditional PMF. However, in the existing methods, no PMF recommender system can combine the image features of products previously purchased by customers and of recommended products. Thus, this study proposes a novel probabilistic model that integrates double convol…
University of Minnesota（明尼苏达大学）；University of Klagenfurt（克拉根福大学）；Indiana University（印第安纳大学）
Today's research in recommender systems is largely based on experimental designs that are static in a sense that they do not consider potential longitudinal effects of providing recommendations to users. In reality, however, various important and interesting phenomena only emerge or become visible over time, e.g., when a recommender system continuously reinforces the popularity of already successful artists on a music streaming site or when recommendations that aim at profit maximization lead to a loss of consumer trust in the long run. In this paper, we discuss how Agent-Based Modeling and Si…
Predicting delayed outcomes is an important problem in recommender systems (e.g., if customers will finish reading an ebook). We formalize the problem as an adversarial, delayed online learning problem and consider how a proxy for the delayed outcome (e.g., if customers read a third of the book in 24 hours) can help minimize regret, even though the proxy is not available when making a prediction. Motivated by our regret analysis, we propose two neural network architectures: Factored Forecaster (FF) which is ideal if the proxy is informative of the outcome in hindsight, and Residual Factored Fo…
Hong Kong University of Science and Technology（香港科技大学）；Shanghai Jiao Tong University（上海交通大学）；BNU-HKBU United International College（北京师范大学-香港浸会大学联合国际学院）
Traditional recommender systems are typically passive in that they try to adapt their recommendations to the user's historical interests. However, it is highly desirable for commercial applications, such as e-commerce, advertisement placement, and news portals, to be able to expand the users' interests so that they would accept items that they were not originally aware of or interested in to increase customer interactions. In this paper, we present Influential Recommender System (IRS), a new recommendation paradigm that aims to proactively lead a user to like a given objective item by progress…
Searching for and making decisions about products is becoming increasingly easier in the e-commerce space, thanks to the evolution of recommender systems. Personalization and recommender systems have gone hand-in-hand to help customers fulfill their shopping needs and improve their experiences in the process. With the growing adoption of conversational platforms for shopping, it has become important to build personalized models at scale to handle the large influx of data and perform inference in real-time. In this work, we present an end-to-end machine learning system for personalized conversa…
Recommendation Systems (RS) have become an essential part of many online services. Due to its pivotal role in guiding customers towards purchasing, there is a natural motivation for unscrupulous parties to spoof RS for profits. In this paper, we study the shilling attack: a subsistent and profitable attack where an adversarial party injects a number of user profiles to promote or demote a target item. Conventional shilling attack models are based on simple heuristics that can be easily detected, or directly adopt adversarial attack methods without a special design for RS. Moreover, the study o…
A large number of empirical studies on applying self-attention models in the domain of recommender systems are based on offline evaluation and metrics computed on standardized datasets. Moreover, many of them do not consider side information such as item and customer metadata although deep-learning recommenders live up to their full potential only when numerous features of heterogeneous type are included. Also, normally the model is used only for a single use case. Due to these shortcomings, even if relevant, previous works are not always representative of their actual effectiveness in real-wo…
Recommender systems is one of the most successful AI technologies applied in the internet cooperations. Popular internet products such as TikTok, Amazon, and YouTube have all integrated recommender systems as their core product feature. Although recommender systems have received great success, it is well known for highly skewed datasets, engineers and researchers need to adjust their methods to tackle the specific problem to yield good results. Inability to deal with highly skewed dataset usually generates hard computational problems for big data clusters and unsatisfactory results for custome…
We introduce normalized nonnegative models (NNM) for explorative data analysis. NNMs are partial convexifications of models from probability theory. We demonstrate their value at the example of item recommendation. We show that NNM-based recommender systems satisfy three criteria that all recommender systems should ideally satisfy: high predictive power, computational tractability, and expressive representations of users and items. Expressive user and item representations are important in practice to succinctly summarize the pool of customers and the pool of items. In NNMs, user representation…
Recommender systems (RSs) have emerged as very useful tools to help customers with their decision-making process, find items of their interest, and alleviate the information overload problem. There are two different lines of approaches in RSs: (1) general recommenders with the main goal of discovering long-term users' preferences, and (2) sequential recommenders with the main focus of capturing short-term users' preferences in a session of user-item interaction (here, a session refers to a record of purchasing multiple items in one shopping event). While considering short-term users' preferenc…
Today, machine learning is applied in almost any field. In machine learning, where there are numerous methods, classification is one of the most basic and crucial ones. Various problems can be solved by classification. The feature selection for model setup is extremely important, and producing new features via feature engineering also has a vital place in the success of the model. In our study, fraud detection classification models are built on a labeled and imbalanced dataset as a case-study. Although it is a natural language processing method, a customer space has been created with word embe…
Product recommender systems and customer profiling techniques have always been a priority in online retail. Recent machine learning research advances and also wide availability of massive parallel numerical computing has enabled various approaches and directions of recommender systems advancement. Worth to mention is the fact that in past years multiple traditional "offline" retail business are gearing more and more towards employing inferential and even predictive analytics both to stock-related problems such as predictive replenishment but also to enrich customer interaction experience. One …
Empowering recommender systems using automatically generated Knowledge Graphs and Reinforcement Learning
Insight Research Ireland Centre for Data Analytics, Data Science Institute, University of Galway（爱尔兰高威大学数据科学研究所Insight爱尔兰数据分析研究中心）；Fidelity Investments（富达投资）
Decision makers need economical information to drive their decisions. The Company Actualis SARL is specialized in the production and distribution of a press review about French regional economic actors. This economic review represents for a client a prospecting tool on partners and competitors. To reduce the overload of useless information, the company is moving towards a customized review for each customer. Three issues appear to achieve this goal. First, how to identify the elements in the text in order to extract objects that match with the recommendation's criteria presented? Second, How t…
Recommender system exists everywhere in the business world. From Goodreads to TikTok, customers of internet products become more addicted to the products thanks to the technology. Industrial practitioners focus on increasing the technical accuracy of recommender systems while at same time balancing other factors such as diversity and serendipity. In spite of the length of the research and development history of recommender systems, there has been little discussion on how to take advantage of visualization techniques to facilitate the algorithmic design of the technology. In this paper, we use …
Twentieth Century Fox Film Corporation（二十世纪福克斯电影公司）
Product recommendation systems are important for major movie studios during the movie greenlight process and as part of machine learning personalization pipelines. Collaborative Filtering (CF) models have proved to be effective at powering recommender systems for online streaming services with explicit customer feedback data. CF models do not perform well in scenarios in which feedback data is not available, in cold start situations like new product launches, and situations with markedly different customer tiers (e.g., high frequency customers vs. casual customers). Generative natural language…
Customer Segmentation is the process of dividing customers into groups based on common characteristics. An intelligent Customer Segmentation will not only enable an organization to effectively allocate marketing resources (e.g., Recommender Systems in the Banking sector) but also it will enable identifying the customer cohorts that are most likely to benefit from a specific policy (e.g., to discover diverse patient groups in the Health sector). While there has been a significant improvement in approaches to Customer Segmentation, the main challenge remains to be the understanding of the reason…
Alternative recommender systems are critical for ecommerce companies. They guide customers to explore a massive product catalog and assist customers to find the right products among an overwhelming number of options. However, it is a non-trivial task to recommend alternative products that fit customer needs. In this paper, we use both textual product information (e.g. product titles and descriptions) and customer behavior data to recommend alternative products. Our results show that the coverage of alternative products is significantly improved in offline evaluations as well as recall and prec…
Recommender systems attempt to reduce information overload and retain customers by selecting a subset of items from a universal set based on user preferences. While research in recommender systems grew out of information retrieval and filtering, the topic has steadily advanced into a legitimate and challenging research area of its own. Recommender systems have traditionally been studied from a content-based filtering vs. collaborative design perspective. Recommendations, however, are not delivered within a vacuum, but rather cast within an informal community of users and social context. Theref…
