5 Things To Know About Making the Next Best Action with Your Customer
MadlinSeidel 270006CS6R Visits (8056)
The IBM® Smarter Analytics Signature Solution - next best action solution opens up a new way to delight your customers and deliver a new source of revenue. By knowing what your customer wants, even before they are aware of it, your company can develop long-term customer relationships leading to higher customer value.
Here are 5 things to know:
1. Organizations lack a consistent customer contact strategy
Mobile devices and social media are increasingly how people are communicating, from millennials to baby boomers. To stay relevant, your company needs to be communicating in this way, too. But reality teaches us that enterprises frequently miss specific customer information which leads to inappropriate or incomplete responses to customer needs, weakening customer relationships. Many companies fail to use their knowledge of past, present and future interactions with the customer which reduces their ability to increase customer value at every interaction with the customer.
To attract their customers’ attention, organizations need to understand and anticipate customer behavior, remembering that modern technology makes individuals more empowered than back in baby boomer times. As an example, buyers can now exchange information about their experiences and make recommendations to one another. With this knowledge, many CEOs are willing to respond faster and more sensitive to engage their customers as individuals.
3. IBM next best action solution helps to increase customer satisfaction
Increasing customer value and pushing up corporate revenue, so is this just another form of up-selling and cross-selling? No, it is not. It is much more a sophisticated method using advanced analytics called decision management, which can be built around each of your customers. Making it possible for every interaction with your customer to be a productive and satisfying experience. Keeping the customer and keeping them happy while driving business is of prime importance.
4. State-of-the-art predictive analytics enable the right action, at the right time
How does this decision management work? The general answer: predictive analytics forecast your future real-time activity by using historical information; this is split it in three main processes (see the figure).
First (information pattern discovery process), data mining techniques analyze patterns found in your corporate data. The results are analytics models which are the basis for the insight or “next best action”. Second (information decision definition process), the analytics models are augmented with business rules depicting your specific organization policies. Finally (information decision making process), the decision model, derived from the assembling process, determines the “desired” right action, at the right time, for each interaction with a customer.
5. Big data provides information used in the next best action solution process
In today's environment businesses are interacting with their customers through various channels. Big data is basically massive amounts of structured and unstructured data (coming from these channels and other sources). Big data when properly managed and analyzed can be critical input to making the appropriate responses “next best action” to meet each customer’s needs. Analytics solutions are critical to understanding this data and making meaningful insights from it.
For more information on the IBM next base action solution, see the IBM Redguide publication: Smarter Analytics: Driving Customer Interactions with the IBM Next Best Action Solution.
Madlin Seidel is an IBM Redbooks Thought Leader. She works with technical experts to create books, guides, blogs, and videos. Follow Madlin on Twitter at @madlinSeidel.