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.

1. @jamet123 #decisionmgt © 2017 Decision Management Solutions
James Taylor, CEO
Success in Customer Next Best Action
Decision Modeling, Rules and Analytics

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

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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

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Customer Next Best Action

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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”

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Targeting Customers Everywhere Is Key
▶ Need to ensure
▶ Consistency
▶ Accuracy
▶ Agility

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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

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Defining The Next Best Action

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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

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Decision Models Show The Balance
Between Analytics and Business Rules
Business
Rules
Analytics

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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

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Decision Models Are Accessible,
Collaborative, Sketchable

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Making It Easy Change The Action

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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

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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?

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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

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Using Data To Pick The Right Action

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Magical Thinking About The Value of Data
A Miracle
Occurs

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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

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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

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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

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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

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Decision Models Show How To Analyze
Analytic Effectiveness
Decision
Made
Supporting
Decisions
Scores
Business
Results

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Putting it all together

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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

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Decision Management Solutions

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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

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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

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More Information
▶ Decision Management Solutions
www.decisionmanagementsolutions.com
▶ Contact Us:
▶ info@decisionmanagementsolutions.com
▶ james@decisionmanagementsolutions.com
+1 650 400 3029

30. Thank You
@jamet123 #decisionmgt © 2017 Decision Management Solutions
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Decision Management, go to:
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