Does a shopkeeper have better recommendation system than Netflix?

You might know, Netflix’s personalized recommendation algorithms produce $1 billion a year in value from customer retention. Majority of Netflix users consider recommendations with 80% of Netflix views coming from the service’s recommendations.But have you ever noticed, how you spend thousands on your favourite shop for buying clothes and cosmetics.

As netflix, a shopkeeper also judge you on the basis of your features (data points) like regular or new customer, age, gender, budget etc. Both of them have same goal, earn money and do not lose customers to competitors

If you are a regular customer, shopkeeper knows your taste, budget and the way to impress you by his service. So he will recommend products accordingly similarly Netflix, if you already have a Netflix account, it will recommend you movies on the basis of your watch history, because it tells your taste.

If you are a new customer, he will categories new customer into a cluster by your first impression, i.e. age, gender, dressing sense, communication skills etc. Now with his experience (data of his regular customers) he will judge you and recommend similar products and later he will try to gather more information about you(budget, profession, address etc) to recommend you more relatable products. In similar way Netflix also categories new users into a cluster on the basis of age,gender, language preferences, location and also by your device. Then it recommend you similar movies that your cluster's users watch. Do you know, Netflix has set up more than 1300 recommendation clusters based on users viewing preferences.

They both do A/B testing, Netflix recommend you same movie with different thumbnail and shopkeeper recommend you same product with its different applications and benefits.

They both use different recommendation systems/thought process for different customers and keep changing it.

Both of them keep collecting data to make their recommendation system better. You might not have noticed, your parents have good relationship with few shopkeepers and from that shop they get exact what they want.

What do you think, which recommendation system is better, Netflix or Shopkeeper? Let me know in the comment section below.

PS, my parents own a shop and I am a weekend shopkeeper since 7th standard??.

This is my first blog. Feel free to judge me, I am beginner to data science.

I will continue this series under #DailyLifeDataScience where I will try to explain every data science concept and use case with daily life scenario. As AI concept is to create artificial brain so it would be great to explain its concept with daily life scenario. Who our brain works to solve daily life problems.

I would like to request data science community to contribute to this hashtag.