“Next Best Action” vs “Next Best Offer”
Winning the attention of customers that are over-marketed and suffering from “ad-fatigue”.
We live a world where companies are attempting to deepen relationships with existing customers in order to sell products that are most likely to be consumed. Terms like “cross-sell”, “increased share-of-wallet” and “right offer, right customer, right time” are the popular themes in a world where retail banks strive for new revenue growth. The aforementioned terms all scream “next-best-offer,” however, often all that’s achieved is the refinement of a sales pitch, not ad-fatigue, so you need to be careful when targeting customers.
Ad-fatigue occurs when customers are inundated with irrelevant marketing and/or sales pitch at each inbound/outbound interaction point. When was the last time you received mail campaigns in the post and actually read them? If the answer is never, then you have been induced into the comatose state of “ad-fatigue” through over-marketing. This makes it increasingly difficult for a retail bank to get their message through to a customer. To solve this we need to get smarter.
“Next best action” succeeds where “next best offer” fails by first ascertaining what type of action is best at a specific point. While it is important to ensure that an offered product is relevant to the customer’s needs, it is equally important to know when not to offer a product, rather do something from a service standpoint to increase brand loyalty.
Examples of actions that can be taken;
It is important to note that customers do not react the same way when targeted. One set of customers will accept your offer while others will completely ignore it or worse, react negatively possibly causing attrition. “Next best action,” done right, creates brand and customer loyalty while minimizing customer attrition.
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