Showing posts with label Product Affinity Analysis. Show all posts
Showing posts with label Product Affinity Analysis. Show all posts

Thursday, 28 March 2013

How to Deliver Next Best Action (NBAs) in Real-Time

How to create Location-based Real-Time Next Best Offers (NBOs)


NBAs are supposed to understand the customer's need and fulfil them even before he/she wants to act on it.

The main purpose of the NBA/NBO is to happen real-time. With the advent of smartphones delivering the Action in appropriate location and time is now easy.

Any Long distance passenger have to wait for few hours for the connecting flight; The Airline knows the customer’s demographic info, location, time (both are very much accurate) - a good amount of info for Analytics

The data of all passengers are fed to Analytical system and their past travel history, lounge purchases, social habits and syndicate data is crunched to figure out the need for each passenger. The needs are then matched with the Offerings of the Airline's partners (Hotels, Boutiques, Spas) in that particular airport and appropriate recommendations are created

Real-Time Next Best Offer (NBO) Flow



Timely message / offer is sent to passenger’s mobile phone (e.g., offer on antique jewelry in Airport boutique ) based on the time/location and her Inflight purchase/interaction behaviour. The last part - knowing his/her immediate purchase/interaction is more important. This is fed into the Analytical system to validate against the recommendaion that are waiting to be delivered - the recommendations are refreshed and delivered. This is what makes the 'Offer' - Real-time (Right Product/Service)

The above example uses Mobile Phone as the Delivery Channel. Please refer What are the key channels to be considered for Promotions for other Channels.


The omni-channel world requires product information to be managed consistently. The main focus areas are
• Provide consistent data across all channels and update the information real-time
• Offer product information at the right time and place;
• Compile a complete data set and deliver rich, unique data;
• Optimum utilization of social media information

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
Related Posts Plugin for WordPress, Blogger...