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Need of Recommendation System in 2021

kritika Published on : 17 June 2021


Recommendation System not only suggests products and services but also drives traffic. Thus, it also acts as a marketing tool for businesses. 


How much time does it take for you to buy a dress from offline stores? Two hours? Three hours? How about the time duration from online stores? 10 minutes? 15 minutes? This time difference between offline and online stores happens because the entity giving you suggestions to buy changes. In offline stores, there is a normal human being who is giving you recommendations based on their preferences, whereas, in online stores, you are getting suggestions based on your likes and dislikes and past activities on the website. This is what a Recommendation System does; it provides recommendations to your customers to enjoy their time on your website with no hassle. 


You can know more about Recommendation System by reading this blog on What is an AI-based recommendation Engine.


Why is Recommendation Engine Important?


Recommendation Engine has become the need of every online business now. It not only suggests products and services but also drives traffic and acts as a marketing tool. You can also monitor the reports and strategize your business accordingly.

Here is a list of industries that must use a recommendation system as it has the power to take one business to another. If you don’t believe us, read the evolution of recommendation engines to understand what we are saying. 




The pandemic has taught a lot of us that learning can be done from anywhere. What a student needs is a good platform where he or she can get all the valuable information. But, a student hates searching for this information – be it a video, document, or a worksheet. Usually in a class, students would not spend one hour searching for a chapter or worksheet. This is where the recommendation system enters – to make the learning process easier and stress-free. A recommendation system can analyze which chapter or topic a student is studying and then recommend documents and worksheets related to it. Not only this, if you use Alie – an AI-based recommendation engine, teachers and parents can also monitor what recommendations are being made and eventually track the progress of the students through its feature called Dashboard.




The gaming industry is the hub of data as everything that a user does is recorded for the progress of games. Recommendation systems can use this much data to give customized recommendations. There are two ways in which the gaming industry can utilize recommendation systems.

  1. By recommending different games to users based on their esports history.
  2. By recommending in-game items/products based on their playing style.




One might wonder what recommendations can one get on a banking platform. But everybody needs suggestions to manage their money and plan for the future, right? Most importantly, everybody needs to be informed about the ‘right plan,’ ‘right investment,’ or ‘right way to save your money,’ before it is too late. This is what the recommendation system does by collecting your information, such as your browsing history and location. Then, it analyzes where you are spending your money the most; if you are spending your money on groceries, it will offer you cash back, or some offer related to it. Likewise, if the recommendation system notices that you are traveling too often, it will provide you with flight discounts. 






The Telecom industry has been relying heavily on their marketing to increase their sales. The current strategy that many telecom companies have adopted is to send messages or emails to customers. A recommendation system in this scenario is best suited as it can track the likes and dislikes of a telecom user and then send them the notifications related to it. The various campaigns that customers may receive can consist of informative messages, recharge offers, or incentives for consumption.




When we talk about the e-commerce industry, it is almost impossible not to talk about the Amazon shopping website. But, did you know that over 35 percent of Amazon’s revenue comes from its recommendation engine? Yes, that is how powerful a recommendation system is in the eCommerce industry. It not only suggests what a customer may like on the website but also sends notifications and emails. This helps in impulse buying and also serves as a marketing campaign for the e-commerce website.




Over The Top‘ industry has been one of the first industries to take total leverage of a recommendation system. It has incorporated the recommendations into their website such that it almost feels like recommendations were there from the beginning. Moreover, OTT platforms like Netflix and Youtube earn the majority of their revenue through recommendations. The key is that a large section of people do not know what they want to watch and mostly rely on the recommendations being made on such websites. So, for any newcomer in the industry, employing a recommendation system is the best way to attract an audience and compel them to stick around.


News Websites


A person interested in sports is most likely to read news related to it; the same goes for any person interested in politics or entertainment news. So what happens if any news website shows information of all kinds to the person interested in reading only sports news? This person will undoubtedly switch to another news article from a different website once he finishes the news. Whose loss is this? Certainly for the news website. To tackle this problem, recommendation systems are there. Through AI-based algorithms, the recommendation system will analyze the user’s history on the website and other social media platforms and then suggest similar content. 


Job Portals


It is true that Job Portals already provide a search engine for finding the right job for you. However, a person searching for alternative employment may not have the time to go through the list of jobs on the website. On the other hand, even the recruiters might not have the time to go through all the profiles. So, using a recommendation system in job portals will ensure that no person misses an opportunity due to lack of time as a recommendation engine can track their qualifications and job preference. The recruiters can also benefit from it by training the recommendation system to show them only the relevant profiles.


Hospital Websites


In the past few years, hospitals have started to build their websites to view what facility they provide. However, what happens is that patients or their relatives might get overwhelmed with the abundant information available on their websites. If the hospitals integrate a recommendation system with their website, they won’t have to search much and can easily find what they are looking for. For example, someone might just want to do a complete health check-up; someone who has a chronic kidney disease might want to know the rate of hemodialysis or its package. 




The hospitality industry is one of the biggest industries as it doesn’t have any limitations to it. The hotel stay, transportation of visitors, and food come under this category in a nutshell. So, when someone plans for their trip somewhere, they will have to take care of all these things. As the city or country the travelers want to go to will be new, they won’t know about it. This is where the hospitality industry and recommendation system can work along and recommend the travelers relevant places to stay, cars they can rent, or places they can visit. This way, even the companies can expand their business, and the travelers won’t have to worry about anything.



Wrapping Up


It is pretty evident that the recommendation system is the need of the hour for every industry. So, if you are a business owner in any industry, you must know what a recommendation system is and see if it fits your business style. You can try the 14-day free trial of Alie to understand and experience the advantage of a recommendation system firsthand.

Written by: kritika

Kritika Verma is an Associate Content Writer and works with Muvi Marketing Team. She is an inbound marketing professional and ensures high-quality traffic on the Muvi website through her blogs, articles, and more. She has an engineering background but always had a knack for writing. In her free time, she is either on Quora or on (Mostly losing).

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