Effective algorithms may boost sales, and a growth rate of 10-15 percent is not uncommon, according to Finans.dk. It would be like entering the Skjern store in the well-known Danish TV series, Matador, and be presented to the products you are probably most interested in. The difference is that the digital, algorithm-driven customer service needs to navigate between thousands of products and millions of customers.
Most recommendation systems are based on a standard algorithm, a standardized product that can handle comparable customer behavioral patterns. Typically, it must be adjusted to suit the particular customer group, says Anders Kofod-Petersen, Deputy Director and Head of the Data Science and Engineering Lab at the Alexandra Institute.