The Ultimate Guide To Next Best Actions And How They Help Transform Your Business
Next Best Actions (NBAs) are recommendations suggested by CRM Analytics for serving a businesses’ customers better and ideally help to achieve the companies’ objectives. The number of service centers and marketing departments using this strategy to keep their customers satisfied is expanding rapidly.
Top 3 things NBAs can help you with
1. Customer Retention
Customer Retention is one of the most important factors influencing a businesses’ success. Acquiring new customers is never easy and needs persistence and persuasion. Thus, leaving customers can severely damage the business. Personalized NBAs can be a very effective measure to win over or better completely avoid situations where the possibility of customer churn is likely to be high. Imagine the following situation: A customer is very unhappy with your service or product, wants to cancel the subscription and leave the company. Your customer service representatives have done their very best to convince the customer to stay, but finally did not succeed.
That’s where CRM Analytics and NBAs come into play. Data of past purchases, usages, click streams, interactions and other activities can be analyzed and used to discover a customers’ preferences. Once you know the customers’ likes and dislikes, you can take advantage of this data and place an offer he cannot refuse. Based on analytics results in combination with available customer data, the approved offerings and the defined KPIs (such as gross margin per customer), you can offer him for example a personalized service or product with an individual discount. This way, NBAs can be a powerful measure to show commitment, make the customer feel more valued and convince him to choose to continue the relationship.
2. Customer Rewards
Keeping your customers happy all the time is not an easy task. But it is what is needed for a business to flourish. Your products and services should satisfy the customers’ needs. However, at times when customers are spoilt for choices, it becomes obligatory to make them feel special and valued by offering them exclusive rewards. NBAs can be used to achieve this purpose as they offer great opportunities to surprise your customers, for example by sending them an occasional free coupon or voucher to make them feel special. Loyalty works both ways: Customers will be loyal to a business that is loyal to them.
3. Cross-Selling & Up-Selling
Another way to use NBAs is for sales promotion. Cross-selling and up-selling activities can be optimized by using well-timed NBAs. For example, if a customer is buying a clothing product and gets a carefully selected, individually customized accessory to pair it up with, he or she will feel understood and consider the offer as relevant. Expect your customers to come back and buy more. When they do, be sure to recommend relevant products or services. NBAs make sales easy, engaging, and rewarding.
How to apply NBAs to your daily business
Now that you know why to use NBAs, we will provide you with some extra recommendations and best practices on how to use them. You should ask yourself the following questions:
- Who is my target group?
Determine the audience you want to address. For example, if the business objective is to encourage inactive consumers to buy again, choose those who didn’t purchase anything within a certain period of time. Thus, you can define rules how to cluster customers and how to address each cluster based on the business objectives.
- What is your offering?
Define what you would like to offer your audience. For example, a NBA can be a personalized, free or discounted product, an extended subscription, a coupon or gift voucher. However, the success lies in making sure the NBA is relevant to your audience.
- How would you like to address your audience?
Determine how the NBAs need to be delivered. You could choose to get in touch via e-mail, SMS, voice call or social media channels. CRM Analytics ensures that your NBA will reach your target group on their preferred channel. You can also check the effectiveness of the different channels by analyzing the data after the NBA has reached your customers.
- When should you contact your customers?
Schedule your NBAs at the most appropriate time for each single customer. Wise use of this criteria becomes crucial and the most successful time can be determined using CRM Analytics.
Let's achieve your companies’ objectives - together
CRM Analytics from Arvato CRM Solutions takes all available information into account – especially the critical factors for generating personalized NBAs such as the target group, your offering, the communication channel and time. We implement CRM Analytics for your day-to-day-business and provide you with a full service offering.
For further information on NBAs and how our CRM Analytics solutions can help your business, contact us via email@example.com or use the following contact form.