The Future of Dynamic Decision-Making: Two AI-Driven Approaches

‍
As businesses continue to invest more in artificial intelligence (AI) technologies to enhance their competitive advantage while navigating an uncertain economy, a key area of impact has emerged in the form of dynamic decision-making. This is particularly noticeable through the implementation of two AI-driven strategies called Next Best Action (NBA) and Next Best Offer (NBO). 

In a business environment where customer preferences, market conditions and other variables are constantly evolving, dynamic decision-making allows businesses to make important decisions in real-time based on the most current and relevant data. This moves away from the traditional decision-making process that has relied on static processes and predefined scenarios. AI, instead, is able to quickly analyze vast amounts of data and offers the ability to make a more informed decision.

‍Differentiating NBA and NBO Strategies

‍While both the NBA and NBO strategies are sophisticated, AI-driven approaches that leverage machine learning algorithms to provide personalized recommendations and decisions in real-time, they each have a unique approach and can generate different results. 

The NBA strategy evaluates customer data, preferences and behaviors to identify the optimal next step in a given moment. This strategy dynamically tailors to each specific customer interaction, prioritizing current needs with the objective of elevating their overall experience. Whether it entails suggesting specific products or services, proposed marketing campaigns or formulating retention strategies, this process is designed to ensure that each decision aligns with the customer’s individual needs and gives them the best experience possible.

• NBA Example: An interested buyer contacts customer service inquiring about a product that is out-of-stock. Instead of providing a scripted response, the system can adapt in real-time. The AI-powered customer service agent can now generate a dynamic customer experience by offering a newer model at a discounted rate. This quick adjustment can capture a sale that otherwise may have been lost and keeps the customer satisfied by receiving a personalized resolution, highlighting the flexibility that the NBA strategy offers.

‍

The NBO strategy takes personalized recommendations and elevates them by customizing product or service offerings unique to a customer profile. Where the NBA strategy is more reactive in determining the best next step to a specific situation, the NBO is a proactive approach that examines various factors like purchase history, browsing behavior and demographic details to present a specific offer based on each customer’s preferences and needs. This advanced approach increases the chances of a sales conversion and enhances the customer experience by providing an individualized offer.

• NBO Example: A bank offers credit cards and is utilizing AI to assist customers in selecting the right card for their purchase habits. Rather than looking at basic banking details, AI can develop a data-driven customer profile. For example, if a specific customer doesn’t travel often but frequently dines out, the personalized offer could be a credit card that offers substantial dining rewards instead of travel rewards.  

‍Implementing a Dynamic Decision-Making Strategy

‍Prior to investing in dynamic decision-making strategies like NBA and NBO, it is critical to understand the current state of the business and its capabilities. Important topics to consider and prioritize are: 

• Customer Profiles. Successful NBA and NBO strategies heavily rely on thorough customer data that includes customer preferences, behaviors and transaction history. Having a deep understanding of target audiences and customer segments allows a business to craft strategies that resonate with individual preferences and needs, creating a personalized and engaging experience that generates sales and improves customer satisfaction. This often involves a substantial investment in a customer data platform(CDP).

• Existing Data Systems, Integrations and Processes. High-quality data is the foundation of informed and accurate decision-making. Executing a comprehensive assessment into the quality and reliability of existing data can uncover the need for data integration across various systems and sources to create a virtualized view of the data. This evaluation generates accurate insights and ensures that the technology is modern, agile and scalable. It also allows an organization to adapt to emerging use cases and remain at the forefront of dynamic data-driven decision-making.

• Organizational AI and Data Science Expertise. Conduct a thorough evaluation of the organization’s available expertise in AI and machine learning. The level of skill that the current AI and data science team can provide has a direct correlation to how successful the implementation of NBA and NBO strategies can be. This includes providing a seamless integration of AI technologies and the continued optimization of algorithms, data interpretation and fine-tuning models to enhance the effectiveness of the implemented strategy.      

• Change Management. To drive meaningful change in an organization’s decision-making, effective change management is crucial. When strategies like NBA and NBO are implemented, they require testing to identify what is, or more importantly, what is not working. Understanding the impact that dynamic decision-making can have on existing business processes and workflows makes planning for effective change management essential. It ensures a smooth transition and creates alignment amongst existing employees for the implemented strategies.

• Measurable Metrics: It is important to define key performance indicators precisely to measure the success of the dynamic decision-making strategies. Impactful metrics to evaluate can include customer satisfaction, conversion rates and revenue growth that provide an opportunity to dig deeper into additional trends and information like customer behavior, engagement and long-term results. This typeof strategic approach can generate immediate success and lead to sustained growth in dynamic decision-making strategies.

An organization’s ability to make real-time decisions based on the most current and relevant data is a game-changer in today's competitive landscape. By embracing AI-driven technologies and strategies like NBA and NBO, organizations can position themselves for sustained success and customer satisfaction in an increasingly dynamic business environment.

Interested in learning more about how BUILT’s digital transformation experts can assist with the implementation of dynamic decision-making for your business? Complete our free DataReadiness for AI Self-Assessment to gauge where your organization is, or feel free to contact us to start a conversation: https://builtglobal.com/contact.