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3 Keys to Success in Customer Next Best Action: Decision Modeling, Business Rules and Analytics

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Different from traditional upsell or cross sell campaigns based on segmentation or one-size-fits-all campaigns, next best action programs leverage decision modeling, predictive analytics and business rules technology to create a dynamic view of the customer that automatically customizes the next best action for each individual customer interaction.

Published in: Data & Analytics
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3 Keys to Success in Customer Next Best Action: Decision Modeling, Business Rules and Analytics

  1. 1. @jamet123 #decisionmgt © 2017 Decision Management Solutions James Taylor, CEO Success in Customer Next Best Action Decision Modeling, Rules and Analytics
  2. 2. @jamet123 #decisionmgt © 2017 Decision Management Solutions 2 James Taylor Decision Management Solutions ▶ We work with clients to improve their business by applying business rules & analytic technology to automate & improve decisions. ▶ Vendor-neutral ▶ Original DMN submitter ▶ Using decision modeling since 2011 ▶ I have spent the last 14 years focused on the development of analytic applications using Decision Management
  3. 3. @jamet123 #decisionmgt © 2017 Decision Management Solutions 3 AGENDA ▶ Customer Next Best Action ▶ Defining the next best action ▶ Making it easy change the action ▶ Using data to pick the right action ▶ Putting it all together
  4. 4. @jamet123 #decisionmgt © 2017 Decision Management Solutions 4 Customer Next Best Action
  5. 5. @jamet123 #decisionmgt © 2017 Decision Management Solutions 5 Next Best Action End The Cookie Cutter ▶ 1:1 Marketing ▶ Personalization ▶ Next Best Offer ▶ Next Best Action ▶ Micro Segmentation “Every time you decide what action to take for a customer, make that Next Best Actin decision be unique to that customer”
  6. 6. @jamet123 #decisionmgt © 2017 Decision Management Solutions 6 Targeting Customers Everywhere Is Key ▶ Need to ensure ▶ Consistency ▶ Accuracy ▶ Agility
  7. 7. @jamet123 #decisionmgt © 2017 Decision Management Solutions 7 External Data Big Data Business Rules Continuous Improvement ▶ Customers use multiple channels ▶ A common service suggests actions ▶ Using business rules and predictive analytics in combination ▶ These are continuously improved ▶ And managed by a decision model ▶ That contains channel-specific decisions that reuse common ones ▶ Automated with business rules and analytics Predictive Analytics Key Elements of Next Best Action
  8. 8. @jamet123 #decisionmgt © 2017 Decision Management Solutions 8 Defining The Next Best Action
  9. 9. @jamet123 #decisionmgt © 2017 Decision Management Solutions 9 Decision Models Show What’s Involved In Next Best Action Cross-channel Core Decision Channel Specific Decision Data, Knowledge Required Mechanics of Best Action Selection Data, Knowledge Required
  10. 10. @jamet123 #decisionmgt © 2017 Decision Management Solutions 10 Decision Models Show The Balance Between Analytics and Business Rules Business Rules Analytics
  11. 11. @jamet123 #decisionmgt © 2017 Decision Management Solutions 11 Decision Models Link Business Performance to Execution Improve Cross-Sell A Total Number of Orders Most Recent Order Total Orders last 12 months Lifetime Order Total Customer Status 1 >= 5 < 90 days > $10,000 - Gold 2 >=10 < 180 days > $20,000 - Gold 3 >= 20 < 360 days > $40,000 - Gold 4 - < 180 days - > $1,000,000 Gold 5 - - - > $2,000,000 Gold Customer Value Determination
  12. 12. @jamet123 #decisionmgt © 2017 Decision Management Solutions 12 Decision Models Are Accessible, Collaborative, Sketchable
  13. 13. @jamet123 #decisionmgt © 2017 Decision Management Solutions 13 Making It Easy Change The Action
  14. 14. @jamet123 #decisionmgt © 2017 Decision Management Solutions 14 The Next Best Decision Is Different It’s A Classic Business Rules Problem ▶ Next Best Action is rich in business meaning ▶ Agreeing Next Best Action requires collaboration ▶ The Next Best Action Changes constantly
  15. 15. @jamet123 #decisionmgt © 2017 Decision Management Solutions 15 Business Rules Management System Answers Critical Questions How Will We Decide Next Time? How Did We Decide Last Time? What Happens If We Change How We Decide? Do We All Agree How We Decide?
  16. 16. @jamet123 #decisionmgt © 2017 Decision Management Solutions 16 Familiar Decision Models Engage Marketing To Manage Rules ▶ Decision model is familiar ▶ Navigation is easy ▶ Decision models ▶ Break down complex problems ▶ Link each sub-decision to rules Sources and drivers of change are clear Impact and ownership are clear Navigate to the rules that have to change
  17. 17. @jamet123 #decisionmgt © 2017 Decision Management Solutions 17 Using Data To Pick The Right Action
  18. 18. @jamet123 #decisionmgt © 2017 Decision Management Solutions 18 Magical Thinking About The Value of Data A Miracle Occurs
  19. 19. @jamet123 #decisionmgt © 2017 Decision Management Solutions 19 Focus On Decisions Apply Analytics To Next Best Action ▶ We need to be more customer-centric ▶ Which means making the Next Best Action decision more accurately ▶ Which will require these analytics ▶ Which can be built from this (Big) data
  20. 20. @jamet123 #decisionmgt © 2017 Decision Management Solutions 20 Many Ways To Use Data To Improve Next Best Action Decision Confirm or validate expert rules Automatically discover patterns in data Identify segments or groups with similar behavior Predict trends or likely future behavior
  21. 21. @jamet123 #decisionmgt © 2017 Decision Management Solutions 21 Data-Driven Next Best Action The Decision Is Key Decision Traditional New External ✓ ✓ Internal ✓ ✓ Enrich With Analytics, Data Science Make Consistent, Precise, Real-Time Decisions Across All Channels Learn Continuously Start with customer data Add Policies, Regulations Best Practices and Preferences Enterprises must stop wasting time and money on unactionable analytics. Mike Gualtieri VP
  22. 22. @jamet123 #decisionmgt © 2017 Decision Management Solutions 22 Decision Models Ensure Analytic Deployment Tie the analytic to the decision and to business results Show how the analytic impacts the Next Best Action decision Use the decision context to frame deployment and sustainability needs
  23. 23. @jamet123 #decisionmgt © 2017 Decision Management Solutions 23 Decision Models Show How To Analyze Analytic Effectiveness Decision Made Supporting Decisions Scores Business Results
  24. 24. @jamet123 #decisionmgt © 2017 Decision Management Solutions 24 Putting it all together
  25. 25. @jamet123 #decisionmgt © 2017 Decision Management Solutions 25 External Data Big Data Business Rules Continuous Improvement ▶ Customers use multiple channels ▶ A common service suggests actions ▶ Using business rules and predictive analytics in combination ▶ These are continuously improved ▶ And managed by a decision model ▶ That contains channel-specific decisions that reuse common ones ▶ Automated with business rules and analytics Predictive Analytics Key Elements of Next Best Action
  26. 26. @jamet123 #decisionmgt © 2017 Decision Management Solutions 26 Decision Management Solutions
  27. 27. @jamet123 #decisionmgt © 2017 Decision Management Solutions 27 Decision Management Solutions ▶ Fortune 500 clients in insurance, financial services, manufacturing, telecommunications, travel, health care, health management, and retail ▶ Hands-on Training - Over 800 trained ▶ Highly skilled bench ▶ Decision Modeling Software DecisionsFirst Modeler ▶ Original co-submitter of the Decision Model and Notation (DMN) Standard ▶ Extensive vendor relationships, vendor neutral
  28. 28. @jamet123 #decisionmgt © 2017 Decision Management Solutions 28 Pilot Example – Next Best Offer ▶ Deliverables ▶ Cloud-based decision service for making offers ▶ Business ownership of key decision- making logic ▶ Impact analysis and testing capability for business owners ▶ Decision impact and business performance dashboard ▶ Criteria for production deployment
  29. 29. @jamet123 #decisionmgt © 2017 Decision Management Solutions 29 More Information ▶ Decision Management Solutions www.decisionmanagementsolutions.com ▶ Contact Us: ▶ info@decisionmanagementsolutions.com ▶ james@decisionmanagementsolutions.com +1 650 400 3029
  30. 30. Thank You @jamet123 #decisionmgt © 2017 Decision Management Solutions For more on Decision Management, go to: decisionmanagementsolutions.com

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