As an increasing number of customers shop online or by phoning in an order, a whole new set of revenue generating opportunities has presented itself. When companies are in these interactive situations with their customers they can recommend very specific additional products or services that should be of interest to that customer. More traditional media may also benefit from personalized messages and from offers that are highly targeted.

The core technology that supports this type of marketing is Product Affinity Analysis (sometimes also known as Collaborative Filtering) that looks at products from a customer perspective. That is, the similarity or affinity of any two products is calibrating by how often they appeal to the same customers. This type of analysis can also generate important insights about useful product groupings and customer segmentations.

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