Recommendation System Development

Generic recommendation systems trained on open datasets don't understand your catalogue, your users, or your business context. A product recommendation engine for an electronics retailer needs different signals than one for a streaming platform or a B2B SaaS tool.
We build custom recommendation systems trained on your interaction data, collaborative filtering, content-based filtering, hybrid models, and LLM-powered recommendations, designed around your specific catalogue, user behaviour, and business objectives.

See our work
  • Custom recommendation models trained on your user interaction and product data

  • Collaborative filtering, content-based, hybrid, and LLM-powered recommendation approaches

  • Real-time and batch recommendation pipelines integrated into your product

  • A/B testing infrastructure to measure recommendation impact on engagement and revenue

Recent outcomes

E-commerce recommendations · Retail platform

Built a hybrid recommendation engine combining collaborative filtering and content-based signals across 200K SKUs. CTR on recommended items increased by 34% in the first A/B test.

34% CTR lift

Personalised email · B2B SaaS

Replaced static email campaigns with a batch recommendation pipeline feeding Klaviyo. Revenue per email send increased 2.5x within 8 weeks of launch.

2.5x revenue per send

Content recommendations · Media platform

Built an LLM-powered recommendation system for a content platform with 50K+ articles. Session depth increased and editorial team time spent on manual curation dropped by 60%.

60% less manual curation
4.9 / 5 on ClutchSee all work

Recognition

Sound familiar?

  • Generic recommendation engine not reflecting your actual catalogue structure or user behaviour?

  • No way to measure whether your recommendations are actually driving engagement or revenue?

In short

RaftLabs builds custom recommendation systems for e-commerce, SaaS, and media platforms in the US, UK, and Australia. We develop collaborative filtering, content-based, hybrid, and LLM-powered models trained on your data. Projects start at $25,000 and deliver in 8-16 weeks.

Trusted by

Vodafone
Nike
Microsoft
Cisco
T-Mobile
Aldi
Heineken
GE

AI development, by the numbers

AI products shipped in 24 months
20+
from kick-off to production-ready AI product
12 weeks
rated by clients on Clutch
4.9/5
years shipping software and AI products
9+

Generic recommendations recommend the wrong things

A recommendation engine that doesn't understand your catalogue recommends items that are superficially similar but not actually relevant. A collaborative filtering model trained on too little data recommends popular items to everyone. A content-based model without proper item attributes recommends based on surface characteristics rather than the features users actually care about.

Custom recommendation systems are trained on your data, tuned for your business objectives, and measured against your actual engagement and revenue metrics.

Capabilities

What we build

Collaborative filtering models

User-based and item-based collaborative filtering trained on your interaction data, purchase history, click streams, view events, ratings, and engagement signals. Matrix factorisation approaches (ALS, SVD) for large-scale user-item interaction datasets. Real-time user similarity computation for personalised recommendations. Cold-start handling for new users with content-based fallbacks.

Content-based recommendation engines

Item similarity models built from catalogue attributes, product categories, tags, descriptions, price ranges, and custom metadata. User preference profiles built from interaction history. Hybrid content-item representations that combine structured attributes with text embeddings from product descriptions. Effective for catalogues with rich metadata and for new-item cold-start scenarios.

LLM-powered recommendations

Recommendation systems that use large language models to understand item descriptions, user queries, and preference signals in natural language. Semantic similarity between user intent and catalogue items. Recommendation explanations in natural language ("Recommended because you bought X"). Effective for conversational recommendation interfaces and for catalogues where text descriptions carry the primary signal.

Real-time recommendation APIs

Low-latency recommendation APIs that serve personalised recommendations in real time, typically under 100ms for homepage, product detail page, and cart recommendations. Precomputed recommendation caches for high-traffic surfaces, real-time user event processing for recency weighting, and feature stores that make user context available to the recommendation model without repeated computation.

Email and push personalisation

Batch recommendation pipelines for personalised email and push notification content, product recommendations, content suggestions, and re-engagement recommendations based on user history and current context. Scheduled generation of personalised content for sending time optimisation. Integration with email platforms (Klaviyo, Mailchimp, Iterable) and push notification services (OneSignal, Firebase Cloud Messaging).

Batch jobs run on a configurable cadence (nightly for daily sends, hourly for triggered workflows) using precomputed recommendation vectors stored in Redis or a feature store such as Feast. Popularity-based fallback recommendations handle cold-start users who have no interaction history, pulling from trending items within the user's most-visited categories. Segment-level personalisation groups users by behavioural cohort when individual histories are too sparse for reliable collaborative filtering. Re-engagement sequences use recency-weighted item embeddings to surface products the user showed intent on but did not purchase, rather than generic bestsellers.

A/B testing and impact measurement

Experimentation infrastructure for recommendation systems: user assignment to control and treatment groups, metric tracking for business impact (CTR, conversion, revenue per user, engagement), statistical significance testing, and reporting dashboards. A/B testing that tells you whether your recommendations are actually driving the outcomes you care about, not just whether they look different.

Holdout groups are assigned at the user level and hashed consistently so users stay in the same bucket across sessions. Online metrics tracked per experiment include click-through rate at position k, add-to-cart rate, conversion rate, revenue per impression, and session depth. Offline evaluation during development uses precision@10 and NDCG (normalised discounted cumulative gain) measured on a time-based held-out split, not a random split, which leaks future signal into training. Bandit algorithms (epsilon-greedy, Thompson sampling) are available for recommendation contexts where a hard A/B split wastes too much opportunity cost on clearly inferior variants. Experiment duration is calculated from expected traffic volume and minimum detectable effect before any test is launched, so you know upfront whether the test will reach statistical significance before your product cycle closes.

How we work

From scope to shipped

Every project follows the same four phases. Scope is locked and price is fixed before development starts.

  1. Week 1
    01

    Data assessment and scope

    We assess your interaction volume, catalogue size, metadata quality, and cold-start severity. You leave week 1 with a written scope document, the recommendation approach selected for your data state, and a fixed-price quote. No development starts without your sign-off.

  2. Weeks 2-4
    02

    Model design and offline evaluation

    We build and evaluate candidate models on your historical data before any production work. Offline metrics (precision, recall, NDCG) are measured on a time-based held-out split. Minimum performance thresholds are agreed before the model goes to the build phase.

  3. Weeks 4-12
    03

    Build, integrate, and A/B test

    Production API development, event tracking integration, and A/B testing infrastructure. Working recommendation API at a staging URL by the end of sprint one. Bi-weekly demos. QA runs in parallel with every sprint.

  4. Weeks 12+
    04

    Launch and post-launch support

    Production deployment with monitoring activated on launch day. A/B test results reviewed at 4 weeks post-launch. 8 weeks of post-launch support included in every project.

Why us

Why teams choose RaftLabs

  1. Senior engineers build what they scope

    The engineers who assess your data and recommendation approach also build the system. No bait-and-switch, no offshore handoff after the contract is signed. The team you meet in week 1 ships in week 12.

  2. Fixed price before development starts

    We scope the work, calculate the cost, and lock it in writing before any development starts. A scope change is a change request: priced, agreed, or dropped. It never absorbs into the project and appears on the final invoice.

  3. 9 years and 100+ products shipped

    Clients include Vodafone, T-Mobile, Aldi, Nike, Cisco, and Lockheed Martin. Track record across AI, SaaS, mobile, automation, and enterprise platforms across healthcare, fintech, logistics, and hospitality.

  4. ROI measured before and after

    We agree on the business metrics that matter before development starts. CTR, conversion rate, revenue per user, session depth. The A/B testing infrastructure is built into every recommendation system so you can prove the impact, not just observe it.

Recommendation systems trained on your data, measured against your metrics

Collaborative filtering, content-based, hybrid, and LLM-powered recommendations. Fixed cost delivery.

Process

How we build recommendation systems

Data assessment and approach selection

Before building, we assess your data, interaction volume, catalogue size, metadata quality, and cold-start severity. The assessment determines which recommendation approach will work for your specific data state. We don't recommend collaborative filtering if you don't have sufficient interaction data, or content-based filtering if your item metadata is sparse. Honest assessment before any development commitment.

Offline evaluation before deployment

Every recommendation model is evaluated on historical data before deployment: precision and recall at K, NDCG, coverage, and novelty metrics measured on a held-out test set. Offline evaluation catches approaches that look good on average but fail on specific user segments or catalogue sections. We establish minimum performance thresholds before the model goes to production.

Incremental improvement with A/B testing

Production recommendation systems improve over time through experimentation. We build the A/B testing infrastructure so your team can run controlled experiments on recommendation changes and measure the actual business impact. Recommendation quality is tracked as a product metric, not a one-time engineering deliverable.

Integration with your product stack

Recommendation APIs integrated into your product, e-commerce platform, mobile app, content management system, or custom application. Event tracking for interaction data collection (views, clicks, purchases, ratings) that feeds back into model retraining. Data pipeline from your product database to the recommendation model. The full integration, not just a model.

Ready to scope your recommendation system project?

30 minutes. You walk away with a clear cost, timeline, and team. No commitment.

Frequently asked questions

We build across the main recommendation approaches: (1) Collaborative filtering, recommendations based on the behaviour of similar users (user-based) or similar items (item-based). Works well when you have sufficient interaction data (views, purchases, ratings, clicks). (2) Content-based filtering, recommendations based on item attributes and user preference profiles. Works when you have rich item metadata and can profile user preferences. (3) Hybrid models, combining collaborative and content-based signals for better coverage and accuracy. Most production systems use hybrid approaches. (4) LLM-powered recommendations, using language models to understand item descriptions, user queries, and preference signals in natural language. Effective for new-item cold-start problems and when catalogue items have rich text descriptions. (5) Session-based recommendations, predicting the next item based on current session behaviour, without requiring user history. We select the approach based on your data availability, catalogue size, and use case requirements.

Data requirements depend on the approach. For collaborative filtering: user-item interaction data, at minimum, implicit feedback (clicks, views, add-to-cart, purchases) across a sufficient user and item population. Typically need 100,000+ interactions for stable collaborative filtering; more is better. For content-based filtering: structured item attributes (category, brand, price range, tags) and either user preference history or signals you can use to build preference profiles. For LLM-powered recommendations: item text descriptions (title, description, features). Cold-start is a solvable problem, we design systems that handle new users and new items with content-based fallbacks. We assess your data during scoping and design the right approach for what you have.

We build measurement infrastructure as part of every recommendation system: A/B testing framework to compare recommendation variants against each other or against a baseline, online metrics (click-through rate, add-to-cart rate, conversion, revenue per user, session depth), and offline evaluation metrics (precision, recall, NDCG) on historical data during development. Business impact metrics are agreed before development starts, the recommendation system should improve specific measurable outcomes, not just produce plausible-looking results. We design the A/B testing infrastructure so you can run experiments and measure the actual revenue or engagement impact of recommendation changes.

A focused recommendation system, one recommendation use case (product recommendations, content recommendations, or similar items), trained on your data, with a production API and basic A/B testing, typically runs $25,000--$60,000. A full recommendation platform with multiple recommendation surfaces (homepage, PDP, cart, email), real-time personalisation, and advanced A/B testing infrastructure runs $60,000--$150,000. Cost depends on the algorithmic complexity, data pipeline requirements, real-time vs. batch serving, and the number of recommendation surfaces. We scope every project before pricing it.

A focused single-surface recommendation system, data pipeline, model training, production API, and basic A/B testing, typically takes 8 to 12 weeks. A full recommendation platform with multiple surfaces, real-time personalisation, and advanced experimentation infrastructure takes 12 to 16 weeks. Timeline depends on data availability, integration complexity, and the number of recommendation surfaces. We provide a fixed timeline during scoping before any development starts.

Yes. We build recommendation APIs that integrate with e-commerce platforms, mobile apps, content management systems, and custom applications. We handle the event tracking setup for collecting interaction data from your product, the data pipeline from your product database to the recommendation model, and the API endpoints your frontend consumes. Most integration work is handled in weeks 4 to 6 of the build phase. We have integrated recommendation systems with Shopify, custom React frontends, and enterprise SaaS platforms.

Work with us

Tell us what you need. We'll tell you what it would take.

We scope Recommendation System Development in 30 minutes. You walk away with a clear cost, timeline, and approach. No commitment required.

  • Scope and cost agreed before work starts. No surprises. No obligation.
  • Working prototype within 3 weeks of kickoff.
  • Pay by milestone. You see progress before each invoice.
  • 60-day post-launch warranty. Bug fixes, UI tweaks, and deployment support. No retainer.
  • All conversations are NDA-protected.