Next Best Action is a learning based on the response of the previous action. Every action/offer is an test offer.
A/B split testing
A/B Tests work like this. Say Two different email messages (Message A / Message B) are sent to customer segments and the responses are measured by the following factors
Mail Open
Clicks on Links
Conversion (Purchase etc)
If say the more number of Message As are clicked than Message B, then A is said to be more effective.
Email Response analysis
The responses are then analysed - responders / non-responders are segmented and analysed. The model is then refreshed.
Once the model is refreshed the customers can be retargeted / left alone
Retargeting Customers
Retargeting is to try out the offer / promotion / message another time. They can send the same message / a different customized message
A/B Testing in Web Page Design / Website Traffic
Case Study - Victoria Secret A/B Testing
Victoria Secret - the leading eCommerce vendor is testing its
Email Subject lines
Offer and Image
using A/B testing (see Site Doublers for the complete case study)
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