Next Best Action
What is Next Best Action?
Next Best Action (NBA) is a customer engagement approach that utilizes a combination of artificial intelligence and real-time interaction data to create hyper-relevant customer experiences. By analyzing consumers unique needs, preferences, and context, brands can determine the most relevant and meaningful action to best engage customers and prospects across any channel at any time.
How NBA is used
With NBA, users build a large library of actions that are always on, making it easy for the artificial intelligence to sense a relevant action to take for each person. Business rules define the conditions under which customers are eligible, when actions are suitable, and where actions are applicable.
Why NBA is effective
Next Best Action engagement strategies create far better customer experiences than static marketing campaigns. It’s more effective to let artificial intelligence trigger content when it’s relevant, for any customer in context, across any channel than it is to pre-determine your customer conversations before they even begin.
Create long lasting customer relationships with NBA
One of the greatest advantages of NBA is that it goes beyond just sales offers to consider all the potential conversations you could have with a customer. Over time, brands deepen connections and drive increased customer lifetime value.
The right action for the right moment
- Service – support daily customer needs
- Retention – keep valuable customers profitably
- Nurture – keep your brand top of mind
- Cross-Sell/Upsell – expand existing relationships
- Acquisition – convert new customers
- Resilience – safeguarding their financial state
How does Next Best Action work?
With NBA, your strategy will make the decision about which offer is best for your customer in each potential category. Every company defines the next best action in its own way, but typically it’s the action that will increase customer lifetime value (CLV) by the largest amount.
Create better customer experiences, go from traditional campaign marketing to one-to-one engagement.
What role does machine learning play in NBA?
Machine learning plays a pivotal role in determining the next best action in marketing and customer engagement programs. Machine learning algorithms analyze vast amounts of customer data – including interaction history, browsing behavior, and demographic information – to better predict which content, offer, or action a customer is most likely to respond to.
What to know about NBA marketing
NBA optimizes marketing programs by identifying the most relevant content to serve – in the most appropriate engagement channel, when a specific customer or prospect is most likely to respond. This ensures that the brand is providing the next best experience for consumers and driving higher customer lifetime values.
Next-best-action programs use machine learning and artificial intelligence to analyze patterns in an organization’s data assets to better predict and understand customer behavior – helping brands create and implement marketing strategies that effectively address consumer needs, improve response rates, and drive conversions.
Fresh, accurate, and organized data sets are foundational to next-best-action marketing. That’s because data analysis is at the core of this capability. Next-best-action models convert data into insights, which inform the AI-powered decisions behind each action.
Next best action models
Next best actions rely on both predictive and adaptive models. Predictive models use historical data to make predictions about which interaction will resonate most with a customer. Adaptive models use real-time data to interpret whether an interaction is effective in real time.
Why are NBA models important
It’s important to use both predictive and adaptive models to understand the full context of a customer interaction – more accurately determining what the next best action should be because it merges historical, contextual, and real-time data.
How is Next Best Action different from traditional campaigns?
Next Best Action
Puts the customer at the center of their journey by enabling real-time interaction based on customer needs. NBA lets the brand pivot instantly to move with the customer, across any channel.
Traditional campaigns
Have static, pre-determined messaging that is delivered at pre-selected times. Often campaigns push products through a sales-first approach and are unable to pivot in real-time, wasting resources, money, and customer attention.
Pega Next Best Action Capabilities
Next-Best-Action Designer
Design, monitor and control your one-to-one strategies.
Next-Best-Action Customer Journeys
Increase relevance of customer experiences.
Next-Best-Action Advisor
Provide recommendations while interacting with customers.
Getting started with Next Best Action
To get started with next-best-action strategies, organizations should define program goals, such as decreasing customer churn, improving response rates, or driving better customer lifetime values. Then, aggregate relevant customer data sets from across their organization and implement the necessary AI-powered tools and applications to deliver against their goals.
Discover Pega’s various capabilities like the Pega Next-Best-Action Designer that can help you jumpstart your strategy, including segmentation, prioritization, and communication channels.