Recommendation engine
A recommendation engine ranks items by predicted affinity for a user, usually inside one surface such as a catalogue, feed or storefront. It optimises relevance within that surface and has no view of margin, contact history or what other teams are doing to the same customer.
Why it matters for ARPU
Relevance and revenue diverge constantly: the most likely next item is often the cheapest one, or one the customer would have found anyway.
Related terms
Next best actionNext best action is the single intervention that maximises expected value for a specific customer at a specific moment, chosen across every available option including doing nothing.Next best offerNext best offer selects the most valuable commercial proposition for a customer: which product, plan, bundle or price to present.Propensity modelA propensity model estimates the probability that a customer takes an action, such as buying, upgrading or cancelling.Decision layerA decision layer is the system that sits between the data warehouse and the execution tools and decides, per customer, what deserves to happen next.