Next-Best-Action™ Marketing

Document Type: 
White Paper
Author: 
Pegasystems Inc.
Topic: 
CRM
Decision Management
Marketing Automation

Overview

Despite all the hype surrounding customer centricity, many organizations still rely on product-oriented customer interaction. For example, traditional direct marketing in which each campaign is set up to promote a single product. While this approach aligns well with current thinking about budgeting, staff compensation, and organizational structures, it is at odds with customer centricity as well as the ultimate corporate objective—profitability.

This paper discusses a new approach to customer communications called Next-Best-Action marketing (N-B-A) that can yield significantly more effective marketing and results. N-B-A is part of the wider next-best-action approach to many types of customer interactions such as risk mitigation, remedial actions for churn and fraud, service provisioning, data collection, arrears, surveys and so forth. When used for marketing, N-B-A has direct and immediate effect as sales and retention will improve with a corresponding boost in revenues. At the same time, marketing costs will decrease while the possibilities for brand expression and control grow. Add to these benefits such desirable ‘side-effects’ as improved customer satisfaction and happier customer facing staff, and everyone will wonder why this new approach was not adopted as the standard long ago.