Posted in Marketing and Strategy Terms, Total Reads: 492
Definition: Next Best Action Marketing
Next best action marketing is the kind of marketing in which consumer is the center and the whole strategy is designed to collect information about individual customers and then that information is used to make a sale. Information is also collected in order to retain customers for future transactions and also deducing the cost to benefit ratio of serving the customer.
Next best action marketing continuously attempts to find out what could be the next best step in the sale process for customer at individual level. While a company is using next best action marketing it gathers information about customers by using a variety of methods. Normally it is done by employees of the company by simply interacting with the customers. Sometimes a customers also approaches a company as the first step and then the company gathers data about customers. The strategy for next best action marketing is formulated by keeping in mind consumers’ interests and also the organization’s business objectives.
Next best action marketing is different from traditional marketing in the sense that in traditional marketing initially proposition for products and services are created and then attempts are made to find the prospects while in next best action initially customers reviews are taken and then proposition for service and products are created. Therefore, next best action marketing is consumer centric and traditional marketing is normally product centric. Sometimes businesses use next best action marketing tactics to build loyalty among customers even during sales conversation. Normally, next best action marketing works great in service industry where employees can talk to customers about their interests and preferences and can customize their service accordingly.
For example; car dealers often talk to their customers about the features they want in their car and how much they are willing to pay for a particular car thus gathering information about customers’ preferences.