AI-POWERED RECOMMENDATION ENGINE FROM BAONE
for retail and e-commerce
Product recommendations have long been a key tool for boosting retail sales. However, with the evolution of technology and the advent of next-generation neural networks, purchase probability forecasting has reached an unprecedented level of accuracy and efficiency.
BaOne recommendation models are rooted in our extensive experience of delivering consulting projects for clients across diverse industries. This unique expertise is a cornerstone of our competitive edge, enabling us to successfully meet business objectives. We tailor our knowledge and hands-on experience to suit the needs of each client, which translates into greater effectiveness and efficiency of our solutions.
At BaOne, we have developed an AI/ML-driven recommendation engine specifically intended for large retail businesses. It combines high-accuracy purchase probability predictions with the flexibility
BaOne recommendation models are rooted in our extensive experience of delivering consulting projects for clients across diverse industries. This unique expertise is a cornerstone of our competitive edge, enabling us to successfully meet business objectives. We tailor our knowledge and hands-on experience to suit the needs of each client, which translates into greater effectiveness and efficiency of our solutions.
At BaOne, we have developed an AI/ML-driven recommendation engine specifically intended for large retail businesses. It combines high-accuracy purchase probability predictions with the flexibility
POTENTIAL VALUE
The AI-driven recommendations from BaOne have delivered a remarkable boost in both sales and profit margin compared to a control group that used an automated recommendations system from another vendor.
- ROUGHLY 20% INCREASEin the number of purchases
- 10%
GROWTHacross active product matrix - UP TO 2 p.p. INCREASEin profit margin
HOW DOES IT WORK?
UNPACKING THE MAGIC BEHIND BAONE’S AI-POWERED PRODUCT RECOMMENDATIONS
The BaOne recommender draws on the various inputs from client IT systems (apps, website, retail purchases) to train its AI model for better predictive performance.
We see AI as a tool that must be carefully fine-tuned to the unique needs of each business for it to perform at its best. Our recommendation service is available as an out-of-the-box, ready-to-use transformer-based solution that predicts the timing of a purchase and items in a customer’s future shopping cart. However, we are flexible to adapt our algorithms to the specific needs of each client for seamless integration with their sales systems and enhanced user satisfaction.
We take an iterative approach to navigating our success journey with the client. Starting from simple ML solutions, we move gradually to implementing more sophisticated and powerful GPU-based recommender systems capable of handling vast amounts of data to achieve substantially improved business metrics.
The BaOne recommender draws on the various inputs from client IT systems (apps, website, retail purchases) to train its AI model for better predictive performance.
We see AI as a tool that must be carefully fine-tuned to the unique needs of each business for it to perform at its best. Our recommendation service is available as an out-of-the-box, ready-to-use transformer-based solution that predicts the timing of a purchase and items in a customer’s future shopping cart. However, we are flexible to adapt our algorithms to the specific needs of each client for seamless integration with their sales systems and enhanced user satisfaction.
We take an iterative approach to navigating our success journey with the client. Starting from simple ML solutions, we move gradually to implementing more sophisticated and powerful GPU-based recommender systems capable of handling vast amounts of data to achieve substantially improved business metrics.
Through this phased process, we help clients unlock new margin opportunities, leveraging the increased ROI to move to more powerful and complex computational models as early as the MVP pilot stage.
Apart from recommending related or complementary products, we also focus on promoting familiar brand products with higher margins and optimum end-user prices, to maximize the value we deliver. This approach drives both retail sales and profit margins to the advantage of the business and customers alike.
We also place great emphasis on analyzing customer behavior and forecasting demand to create personalized solutions that foster customer loyalty and engagement. Beyond improving current performance, our recommender models contribute to longer-term business growth by providing insight into market trends and the target audience's preferences.
The BaOne bespoke recommendation model is designed to identify products that are most likely to be purchased by a particular customer, rather than a segment or cluster or customers. Our recommendations are configured to meet personal preferences across various touchpoints throughout the customer journey. Examples include personalized next-purchase recommendations, frequently-bought-together feature or optimized listings.
Apart from recommending related or complementary products, we also focus on promoting familiar brand products with higher margins and optimum end-user prices, to maximize the value we deliver. This approach drives both retail sales and profit margins to the advantage of the business and customers alike.
We also place great emphasis on analyzing customer behavior and forecasting demand to create personalized solutions that foster customer loyalty and engagement. Beyond improving current performance, our recommender models contribute to longer-term business growth by providing insight into market trends and the target audience's preferences.
The BaOne bespoke recommendation model is designed to identify products that are most likely to be purchased by a particular customer, rather than a segment or cluster or customers. Our recommendations are configured to meet personal preferences across various touchpoints throughout the customer journey. Examples include personalized next-purchase recommendations, frequently-bought-together feature or optimized listings.
BAONE APPROACH
- Collect and analyze data, identify key business metrics, RFM analysis, cohort analysis
- Optimize the algorithm and form hypotheses for the specific business case
- Customize, refine and optimize the recommendation model for specific placements (cart, product page, listing, etc.)
- Launch models and collect feedback (retraining, modifications)
- Data is processed by machine learning algorithms using business-specific filters, limitations and rules. The resulting AI model-based recommendations come in three types:
- Product-to-Product – based on user activities
- Customer-to-Product – based on a combination of user activities (viewing photos, searching)
- Customer-to-Customer – based on activities of another user with a similar shopping history
- Build both on-prem and SaaS-based recommender systems
- Support pilot implementation and A/B model testing
CASE STUDY: BUILDING A PRODUCT RECOMMENDATION MODEL FOR A MAJOR FOOD RETAILER
Customer
A major food retailer with over 900 stores, 13 million active customers and 100 million purchases
Why use an AI solution
With its huge customer base, the retailer faced challenges in:
- Providing personalized product recommendations
- Measuring the impact of personal discounts
- Managing the product matrix though targeted offers to customers interested in specific products
Project objectives
To boost:
- Margin, by 1-2 p.p.
- Average number of purchases, by 20-30%
- Active product matrix, by 10%
Solution
We developed a hybrid recommendation model based on neural network embeddings and collaborative filtering to:
- Leverage personal purchase histories and customer preferences, even with very large customer bases
- Ensure continuous retraining on various user signals, such as purchases, searches, comparisons, cart activity, etc.
- Predict future purchases based on purchase frequency
Value delivered
- +1.83% increase in net product margin
- 2.5x growth in conversion rate
- +10% increase in activity across product matrix categories
- Enabled management of personalized offers through customized channels, such as email, mobile apps, push notifications, SMS, etc.
- Enabled segmentation management and user activation through offers based on RFM analysis
FAQ
The timeline for custom software development depends on the client’s specific requirements, but projects typically range from one month to one year. For example, our fastest delivery to date was a hydraulic fracturing (fracking) monitoring app for daily oil production, built in just two weeks thanks to a highly focused scope, a skilled team, and streamlined processes. Factors like complexity, feature depth, integrations, and testing needs also influence the duration. We prioritize collaboration with clients to define clear goals, break down milestones, and ensure timely delivery without compromising quality. Every project is tailored to your unique needs, balancing speed and precision to achieve results efficiently.
We specialize in delivering tailored software solutions across a diverse range of industries, including Oil & Gas, Power & Utilities, Mining & Metals, Advanced Manufacturing, Insurance, Wealth & Asset Management, Consumer Products & Retail, Health, Technology, Telecommunications, Media & Entertainment, Transportation, Real Estate, Hospitality & Construction, and Government & Public Sector. For instance, in Oil & Gas, we’ve developed a hydraulic fracturing (fracking) monitoring app in just two weeks. Our expertise spans from optimizing industrial operations in heavy sectors like metals and manufacturing to enabling innovation in consumer-facing industries such as retail, healthcare, and fintech. By understanding sector-specific challenges, we build scalable, efficient solutions that align with your industry’s unique demands and regulatory landscapes.
At our company, we take a holistic approach to software development, focusing on achieving specific business outcomes rather than adhering to a particular technology stack. We believe that the best technology is the one that efficiently delivers the desired results.
Our development process starts with a deep understanding of your business objectives and expected metrics. We analyze the problem from all angles to determine the most effective technological solution for your unique case. This approach allows us to select the right tools and frameworks that will help you achieve your goals in the shortest possible time.
Whether it is web development, mobile apps, or complex enterprise systems, we have expertise across a wide range of technologies. Our team is proficient in both established and emerging tech stacks, including:
We also specialize in integrating Artificial Intelligence and Machine Learning solutions to drive innovation and enhance business processes. Our AI capabilities include:
What sets us apart is our commitment to measurable results. We don’t push a one-size-fits-all solution; instead, we tailor our technology choices to fit your specific needs and expected outcomes. Our goal is to provide a solution that not only meets your current requirements but also scales with your business, ensuring a solid return on investment.
In summary, our technology selection process is driven by your business objectives and expected metrics, not by our preference for a specific technology. We are agnostic when it comes to tech stacks and focus solely on delivering solutions that produce tangible business value, whether it’s through traditional software development or cutting-edge AI implementations.
Our development process starts with a deep understanding of your business objectives and expected metrics. We analyze the problem from all angles to determine the most effective technological solution for your unique case. This approach allows us to select the right tools and frameworks that will help you achieve your goals in the shortest possible time.
Whether it is web development, mobile apps, or complex enterprise systems, we have expertise across a wide range of technologies. Our team is proficient in both established and emerging tech stacks, including:
- JavaScript frameworks (React, Angular, Vue.js)
- Python (Django, Flask)
- Java and Spring Boot
- .NET ecosystem
- Mobile development (React Native, Flutter, native iOS/Android)
We also specialize in integrating Artificial Intelligence and Machine Learning solutions to drive innovation and enhance business processes. Our AI capabilities include:
- Machine Learning models for predictive analytics and data-driven insights
- Recommendation systems to personalize user experiences
- Deep Learning solutions for complex pattern recognition
What sets us apart is our commitment to measurable results. We don’t push a one-size-fits-all solution; instead, we tailor our technology choices to fit your specific needs and expected outcomes. Our goal is to provide a solution that not only meets your current requirements but also scales with your business, ensuring a solid return on investment.
In summary, our technology selection process is driven by your business objectives and expected metrics, not by our preference for a specific technology. We are agnostic when it comes to tech stacks and focus solely on delivering solutions that produce tangible business value, whether it’s through traditional software development or cutting-edge AI implementations.
We take a comprehensive approach to ensure data security in our software solutions, focusing on multiple layers of protection and continuous monitoring. Our security process includes several critical stages:
First, we implement a rigorous code review process that starts with Static Application Security Testing (SAST). SAST allows us to analyze the source code, its components, and dependencies for potential vulnerabilities without executing the program. This method provides deep code coverage and helps identify security weaknesses early in the development cycle, ensuring that our solutions are built on a secure foundation.
Next, we perform dependency scanning to assess the security of all third-party libraries and frameworks used in our solutions. Any high-risk dependencies are identified and either secured or replaced to minimize potential security threats.
Before deployment, we conduct a comprehensive distribution review to ensure that the final product package is secure and free from known vulnerabilities. This includes checking for unnecessary components and ensuring that all security configurations are properly set.
An essential part of our security process is penetration testing, where we simulate real-world attacks to identify and remediate potential security breaches. Our team of security experts performs both automated and manual pen tests to ensure the highest level of protection.
Throughout the development lifecycle, we adhere to industry-standard security practices and keep ourselves updated with the latest security threats and mitigation techniques. Our goal is to provide our clients with software solutions that not only meet but exceed security expectations.
By combining these multiple security measures, we can confidently deliver secure software solutions that protect our clients’ data and maintain their trust.
First, we implement a rigorous code review process that starts with Static Application Security Testing (SAST). SAST allows us to analyze the source code, its components, and dependencies for potential vulnerabilities without executing the program. This method provides deep code coverage and helps identify security weaknesses early in the development cycle, ensuring that our solutions are built on a secure foundation.
Next, we perform dependency scanning to assess the security of all third-party libraries and frameworks used in our solutions. Any high-risk dependencies are identified and either secured or replaced to minimize potential security threats.
Before deployment, we conduct a comprehensive distribution review to ensure that the final product package is secure and free from known vulnerabilities. This includes checking for unnecessary components and ensuring that all security configurations are properly set.
An essential part of our security process is penetration testing, where we simulate real-world attacks to identify and remediate potential security breaches. Our team of security experts performs both automated and manual pen tests to ensure the highest level of protection.
Throughout the development lifecycle, we adhere to industry-standard security practices and keep ourselves updated with the latest security threats and mitigation techniques. Our goal is to provide our clients with software solutions that not only meet but exceed security expectations.
By combining these multiple security measures, we can confidently deliver secure software solutions that protect our clients’ data and maintain their trust.
Yes, we provide comprehensive ongoing maintenance and support for our software solutions. We understand the critical importance of keeping your systems running smoothly, which is why we’ve established a robust support structure.
Our support system operates through three dedicated tiers:
First-line support handles initial customer inquiries and resolves common issues. Our skilled support specialists are available to provide quick assistance and troubleshooting.
Second-line support consists of experienced developers and engineers who tackle more complex technical problems. They work closely with our product teams to ensure efficient issue resolution.
Third-line support involves our senior architects and development leads. They address critical issues that require in-depth analysis and specialized expertise to resolve.
We operate under strict Service Level Agreements (SLAs) to guarantee timely and effective support. Our SLAs define response times, resolution deadlines, and other key performance indicators to meet your business needs.
Our maintenance services include:
We believe that support doesn’t end with product delivery. Our goal is to maintain a long-term partnership with our clients, ensuring their systems remain reliable and up-to-date. We continuously monitor system health and proactively address potential issues before they impact your operations.
By choosing our maintenance and support services, you can focus on your core business while we take care of the health and performance of your software solutions.
Our support system operates through three dedicated tiers:
First-line support handles initial customer inquiries and resolves common issues. Our skilled support specialists are available to provide quick assistance and troubleshooting.
Second-line support consists of experienced developers and engineers who tackle more complex technical problems. They work closely with our product teams to ensure efficient issue resolution.
Third-line support involves our senior architects and development leads. They address critical issues that require in-depth analysis and specialized expertise to resolve.
We operate under strict Service Level Agreements (SLAs) to guarantee timely and effective support. Our SLAs define response times, resolution deadlines, and other key performance indicators to meet your business needs.
Our maintenance services include:
- Regular software updates and patches
- Performance monitoring and optimization
- Security audits and vulnerability management
- System backups and disaster recovery
- Documentation updates
- User training and support
We believe that support doesn’t end with product delivery. Our goal is to maintain a long-term partnership with our clients, ensuring their systems remain reliable and up-to-date. We continuously monitor system health and proactively address potential issues before they impact your operations.
By choosing our maintenance and support services, you can focus on your core business while we take care of the health and performance of your software solutions.
The cost of custom software development varies depending on the project’s scope, complexity, and approach. Typically, we start by defining the core business objectives and establishing measurable success metrics. Next, we outline the required services and features through an assessment matrix, prioritizing them based on impact and feasibility. Once aligned with the client’s goals, we assemble a dedicated team tailored to the project needs. The final cost is determined by the team composition (e.g., size, expertise) and the agreed-upon timeline. This structured process ensures transparency and alignment with your budget while delivering solutions that drive measurable results.
Yes, BaOne specializes in cloud-based software development, leveraging leading platforms like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure to build scalable, secure, and cost-effective solutions. Whether you need a hybrid, multi-cloud, or fully cloud-native application, our team designs architectures tailored to your business needs.
How We Deliver Cloud Solutions:
Platform Expertise: We optimize workloads across AWS, Google Cloud, and Azure, selecting the best fit for your performance, compliance, and budget requirements.
End-to-End Development: From migration of legacy systems to building cloud-first applications, we ensure seamless integration with your existing workflows.
Scalability & Security: Our solutions prioritize auto-scaling, disaster recovery, and robust encryption to handle peak demands and protect sensitive data.
By combining our cloud engineering expertise with industry-specific insights, we deliver solutions that are agile, future-proof, and aligned with your operational goals. Let us help you harness the cloud’s full potential.
How We Deliver Cloud Solutions:
Platform Expertise: We optimize workloads across AWS, Google Cloud, and Azure, selecting the best fit for your performance, compliance, and budget requirements.
End-to-End Development: From migration of legacy systems to building cloud-first applications, we ensure seamless integration with your existing workflows.
Scalability & Security: Our solutions prioritize auto-scaling, disaster recovery, and robust encryption to handle peak demands and protect sensitive data.
By combining our cloud engineering expertise with industry-specific insights, we deliver solutions that are agile, future-proof, and aligned with your operational goals. Let us help you harness the cloud’s full potential.
Yes, consultation is a core part of our process to ensure your custom software aligns with your business goals. At BaOne, we focus on solving business challenges, not just building IT solutions. Successful outcomes require a blend of technical expertise and deep immersion into your industry’s unique context. While in-house specialists bring valuable insights, their availability, subjective experience, and time constraints can limit effectiveness. This is where our cross-functional team adds value, combining external objectivity with structured methodologies.
Our Full-Cycle Development Process Includes Consultation at Every Stage:
1. Digitalization Hypothesis & Business Case Validation
We collaborate with you to evaluate opportunities, define measurable success metrics (KPIs), and help secure project funding by building a compelling business case.
2. Business Impact Assessment
Our priority is to ensure the solution drives tangible results, whether through process optimization, cost reduction, or revenue growth.
3. Business Analysis & Solution Design
We map workflows, design architecture, and create a prioritized feature backlog to align technical execution with your strategic objectives.
4. Development & Quality Assurance
Our agile teams deliver iterative releases with rigorous testing, ensuring the solution meets both functional requirements and business KPIs.
5. Implementation & Ongoing Support
We provide post-launch guidance, including technical maintenance, user training, and continuous optimization.
Our team of industry experts, methodologists, IT architects, and project managers ensures minimal effort on your side while guaranteeing solutions tailored to your operational needs. By integrating consultation into every phase, we eliminate guesswork and deliver software that transforms processes, scales with your business, and maximizes ROI.
Get a Free Consultation right now
Our Full-Cycle Development Process Includes Consultation at Every Stage:
1. Digitalization Hypothesis & Business Case Validation
We collaborate with you to evaluate opportunities, define measurable success metrics (KPIs), and help secure project funding by building a compelling business case.
2. Business Impact Assessment
Our priority is to ensure the solution drives tangible results, whether through process optimization, cost reduction, or revenue growth.
3. Business Analysis & Solution Design
We map workflows, design architecture, and create a prioritized feature backlog to align technical execution with your strategic objectives.
4. Development & Quality Assurance
Our agile teams deliver iterative releases with rigorous testing, ensuring the solution meets both functional requirements and business KPIs.
5. Implementation & Ongoing Support
We provide post-launch guidance, including technical maintenance, user training, and continuous optimization.
Our team of industry experts, methodologists, IT architects, and project managers ensures minimal effort on your side while guaranteeing solutions tailored to your operational needs. By integrating consultation into every phase, we eliminate guesswork and deliver software that transforms processes, scales with your business, and maximizes ROI.
Get a Free Consultation right now
We follow a structured yet flexible approach to project management tailored specifically for software development projects. Our process is designed to ensure transparency, efficiency, and effective communication throughout the entire development lifecycle.
Our project management framework includes:
1. Agile Methodologies: We primarily use Agile methodologies such as Scrum or Kanban, depending on the project’s needs. This allows for iterative development, continuous feedback, and rapid adaptation to changes.
2. Daily Stand-ups: We conduct daily 15-minute meetings where team members discuss progress, upcoming tasks, and any blockers. This helps keep everyone aligned and ensure that issues are identified early.
3. Sprint Planning and Retrospectives: For Agile projects, we hold sprint planning sessions to define goals and tasks for the upcoming sprint. After each sprint, we conduct retrospectives to review what went well and identify areas for improvement.
4. Regular Progress Updates: We provide weekly or bi-weekly progress reports to stakeholders, detailing completed work, upcoming milestones, and any risks or issues.
5. Communication Channels: We utilize a combination of tools for communication:
6. Stakeholder Engagement: We maintain regular communication with stakeholders through:
7. Risk Management: We continuously identify and assess risks, develop mitigation strategies, and keep stakeholders informed of any significant risk changes.
8. Change Management: We have a structured process for managing changes to scope, requirements, or priorities to ensure minimal disruption to project delivery.
9. Documentation: We maintain up-to-date project documentation, including:
10. Continuous Improvement: We continuously evaluate our processes and adopt best practices to enhance efficiency and deliver better outcomes.
Our goal is to create a collaborative environment where communication flows seamlessly, and all team members are aligned towards achieving project objectives. We believe that effective project management and communication are key to delivering successful software solutions that meet and exceed our clients’ expectations.
Our project management framework includes:
1. Agile Methodologies: We primarily use Agile methodologies such as Scrum or Kanban, depending on the project’s needs. This allows for iterative development, continuous feedback, and rapid adaptation to changes.
2. Daily Stand-ups: We conduct daily 15-minute meetings where team members discuss progress, upcoming tasks, and any blockers. This helps keep everyone aligned and ensure that issues are identified early.
3. Sprint Planning and Retrospectives: For Agile projects, we hold sprint planning sessions to define goals and tasks for the upcoming sprint. After each sprint, we conduct retrospectives to review what went well and identify areas for improvement.
4. Regular Progress Updates: We provide weekly or bi-weekly progress reports to stakeholders, detailing completed work, upcoming milestones, and any risks or issues.
5. Communication Channels: We utilize a combination of tools for communication:
- Project Management Tools: For task tracking and progress monitoring
- Collaboration Platforms: For real-time communication and document sharing
- Email and Documentation: For formal communication and knowledge sharing
6. Stakeholder Engagement: We maintain regular communication with stakeholders through:
- Weekly/Bi-weekly Meetings: To discuss project status and gather feedback
- Demonstrations: Regular showcases of working software
- Ad-hoc Communication: As needed to address specific concerns or requests
7. Risk Management: We continuously identify and assess risks, develop mitigation strategies, and keep stakeholders informed of any significant risk changes.
8. Change Management: We have a structured process for managing changes to scope, requirements, or priorities to ensure minimal disruption to project delivery.
9. Documentation: We maintain up-to-date project documentation, including:
- Requirements Documents
- Design Specifications
- Technical Documentation
- User Manuals
10. Continuous Improvement: We continuously evaluate our processes and adopt best practices to enhance efficiency and deliver better outcomes.
Our goal is to create a collaborative environment where communication flows seamlessly, and all team members are aligned towards achieving project objectives. We believe that effective project management and communication are key to delivering successful software solutions that meet and exceed our clients’ expectations.
- Vitaly BaumA technology expert with over fifteen years of experience serving international companies.Specializes in digital transformation programs across various industries, with a special focus on implementing IT products for retail and e-commerce (both B2B and B2C), oil producers, OFS firms, insurance companies and pensions funds.
innovations@baone.ae
Discuss Your Project Today
© 2025 BaOne FZCO
Address: Sheikh Rashid Tower, Dubai World Trade Centre, Dubai, UAE
www.BaOne.ae
Tel.: +971507417119
innovations@baone.ae