StoBasket: Joint Upsell and Cross-Sell Optimization for Contribution Margin
In brief
- Current recommendations ignore the actual contribution margin of sales.
- StoBasket jointly optimizes upsell and cross-sell by modeling their interactions.
- Gains reach up to 10.2% of achievable margin on real-world data.
Current recommendation systems focus on product relevance, but retailers earn money on contribution margin. StoBasket introduces a method to jointly optimize upsell and cross-sell by accounting for their interactions. Tests on five public datasets show significant gains over existing approaches.
What it changes for you
- Retail & E-commerceRetailers can increase their contribution margin by 10% by adopting this joint recommendation method.
This summary gives you the essentials. The full article, its figures and quotes are on cs.AI updates on arXiv.org.
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