Friday, 19 October 2012

What is Next Best Offer and How to Achieve It

What is Next Best Offer

Simply put, it is to know the customers needs before he/she acts. This means that apart from his Product Preference, one should know the Price, the Channel and the Time he is looking for or interested in.

How to create NBO

With the combination of Right Product and Right Pricing the Promotions are made through Right Channel and at Right Time. This increases the probability of redemption of that particular offer.

The above process starts with setting the Objectives - the Retailer has to have clear goal in mind what they want to achieve from NBO - a Retailer who has launched a new store wants more Footfalls, an established retailer wants increase in margins  

Once the goals are set, the retailer has to understand their customers. The Retailer has to collect data from various sources like:

  • Point of Sale -Transaction Data
  • CRM - Customer Demographic Data etc
  • Call Center Data - Customer Service Desk
  • Social Media - Twitter, Facebook etc
  • Product Offerings - Product Information, Private Label - CPG Brand, Profit Margins, Inventory etc

This is vital step for NBO. The availability of data holds the key

Once the data is collected, cleaned - it has to be analyzed. There are many predictive modelling techniques available to understand customer behaviour and map them with related Offers.

Once the offers are made, the Retailer has to measure the Offer Response constantly and create new offers based on this performance.

This is a continuous learning process... Blog Directory
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