AI Cross-Sell Recommendation System for Sales

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AI Cross-Sell Recommendation System for Sales
Medium
~5 business days
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Implementing AI-Based Cross-Sell Recommendation System for Sales

Cross-sell recommends additional products related to what the customer is already buying or viewing. Classic example: to a printer — cartridges, to a laptop — a bag. The ML approach finds non-trivial product pairs through joint purchase analysis (market basket analysis) and adds personalization through user profile.

Market Basket Analysis + Personalization

import pandas as pd
import numpy as np
from mlxtend.frequent_patterns import apriori, association_rules
from mlxtend.preprocessing import TransactionEncoder
from sklearn.ensemble import GradientBoostingClassifier

class CrossSellRecommender:
    def __init__(self, min_support: float = 0.01, min_confidence: float = 0.1):
        self.min_support = min_support
        self.min_confidence = min_confidence
        self.rules = None
        self.cross_sell_map = {}
        self.personalization_model = None

    def fit_association_rules(self, orders_df: pd.DataFrame,
                               order_col: str = "order_id",
                               item_col: str = "item_id"):
        """Finding association rules through Apriori"""
        # Transaction baskets
        baskets = orders_df.groupby(order_col)[item_col].apply(list).tolist()

        te = TransactionEncoder()
        te_array = te.fit_transform(baskets)
        df_encoded = pd.DataFrame(te_array, columns=te.columns_)

        # Frequent itemsets
        frequent_itemsets = apriori(
            df_encoded,
            min_support=self.min_support,
            use_colnames=True,
            max_len=3
        )

        # Association rules
        self.rules = association_rules(
            frequent_itemsets,
            metric="lift",
            min_threshold=1.2
        )
        self.rules = self.rules[self.rules['confidence'] >= self.min_confidence]
        self.rules = self.rules.sort_values('lift', ascending=False)

        # Mapping: item → list of recommendations with metrics
        for _, rule in self.rules.iterrows():
            for antecedent in rule['antecedents']:
                if antecedent not in self.cross_sell_map:
                    self.cross_sell_map[antecedent] = []
                for consequent in rule['consequents']:
                    if antecedent != consequent:
                        self.cross_sell_map[antecedent].append({
                            'item_id': consequent,
                            'confidence': rule['confidence'],
                            'lift': rule['lift'],
                            'support': rule['support']
                        })

        # Sort by lift
        for item in self.cross_sell_map:
            self.cross_sell_map[item].sort(key=lambda x: x['lift'], reverse=True)

    def recommend_cross_sell(self, cart_items: list[str],
                              user_history: list[str] = None,
                              n: int = 5) -> list[dict]:
        """Cross-sell for current cart"""
        candidates = {}

        for item_id in cart_items:
            related = self.cross_sell_map.get(item_id, [])
            for rec in related:
                rec_id = rec['item_id']

                # Skip items already in cart or history
                if rec_id in cart_items:
                    continue
                if user_history and rec_id in user_history:
                    continue

                if rec_id not in candidates:
                    candidates[rec_id] = {'score': 0, 'triggers': []}

                candidates[rec_id]['score'] += rec['lift']
                candidates[rec_id]['triggers'].append(item_id)

        # Normalization
        if not candidates:
            return []

        sorted_candidates = sorted(
            [{'item_id': k, **v} for k, v in candidates.items()],
            key=lambda x: x['score'],
            reverse=True
        )

        return sorted_candidates[:n]

    def get_complementary_categories(self, category: str) -> list[str]:
        """Complementary categories"""
        category_rules = self.rules[
            self.rules['antecedents'].apply(lambda x: category in str(x))
        ]['consequents'].apply(lambda x: list(x)).explode().value_counts()

        return category_rules.head(5).index.tolist()

Temporal Patterns: Next Purchase

class NextPurchasePredictor:
    """Predicting next purchase based on history"""

    def predict_next_items(self, user_id: str,
                            purchase_history: list[dict],
                            catalog_features: pd.DataFrame) -> list[tuple]:
        """
        purchase_history: [{item_id, date, quantity, category}]
        Returns: [(item_id, probability)]
        """
        if len(purchase_history) < 3:
            return []

        # Repeat purchase pattern
        item_intervals = {}
        for i in range(1, len(purchase_history)):
            item = purchase_history[i]['item_id']
            prev_same = [h for h in purchase_history[:i] if h['item_id'] == item]
            if prev_same:
                days_between = (
                    pd.to_datetime(purchase_history[i]['date']) -
                    pd.to_datetime(prev_same[-1]['date'])
                ).days
                if item not in item_intervals:
                    item_intervals[item] = []
                item_intervals[item].append(days_between)

        # Predicting repeat purchases
        predictions = []
        last_purchase_date = pd.to_datetime(purchase_history[-1]['date'])
        today = pd.Timestamp.now()
        days_since_last = (today - last_purchase_date).days

        for item_id, intervals in item_intervals.items():
            avg_interval = np.mean(intervals)
            std_interval = np.std(intervals) if len(intervals) > 1 else avg_interval * 0.3

            # Probability through normal distribution
            from scipy.stats import norm
            prob = norm.cdf(days_since_last + 7, avg_interval, std_interval + 1)
            prob -= norm.cdf(days_since_last - 7, avg_interval, std_interval + 1)
            prob = min(max(prob, 0), 1)

            if prob > 0.1:
                predictions.append((item_id, prob))

        return sorted(predictions, key=lambda x: x[1], reverse=True)[:10]

Association rules with min_support=0.01, min_confidence=0.1 typically yield 500-5000 significant rules on 100K orders. Lift > 2.0 — strong association. Cross-sell through rules gives average basket uplift of 15-25%. Combination with personalization (user history) adds another 5-10% to acceptance rate.