next-best-action design and configuration · for more details on next-best-action designer, see the...

Next-Best-Action Design and Configuration 1

Next-Best-Action Design and Configuration Pega Marketing for Financial Services 7.31

November 2017

Introduction New authoring capabilities in Pega Marketing for Financial Services simplify the definition and management of Next-Best-Actions. Marketers now have a fully guided process for modeling marketing strategies across every customer interaction type and business issue.

The Next-Best-Action models are pre-configured in our reference application for the data architect to use as a starting point. Marketers can use or modify the preconfigured actions, relevancy, customer eligibility criteria, and engagement prioritization. The results are exposed to real-time channels through pre-configured real-time containers. Users can simply manage Business as Usual changes to their always-on strategies through the use of the Revision Manager.

The following Next-Best-Action hierarchy and decisioning artifacts are available in the Pega Marketing for Financial Services CRM Sample Application. In the sample application, the hierarchy is blank as to not pollute the customer’s QA and Production environments on installation. The Strategy Result (SR) classes and key SR properties that define the Next-Best-Action hierarchy are however present so that the new customer’s SR classes created can inherit from them. This allows for customers to decide what they wish to leverage from the Pega Marketing for Financial Services sample application and save as into their customer specific application layer.

For more details on Next-Best-Action Designer, see the Pega Marketing 7.31 User Guide on the Pega Marketing product page.

Contents Pega Marketing for Financial Services next-best-action hierarchy

Pega Marketing for Financial Services real-time containers

− Auto Loan container

Pega Marketing for Financial Services Next-Best-Action designer

− Supporting decisions

- Next-Best-Action

- Next-Best-Offer

− Collection node

− Cross Sell node

− Upsell node

− Service node

− Sales node

Updating the Next-Best-Action model

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Pega Marketing for Financial Services next-best-action hierarchy To identify a next best action, the system evaluates the customer in context against configured Business Issues. Business Issues encapsulate the strategies and models used to identify the relevant actions against this customer at a macro level, e.g., whether to sell to the customer in context or to service the customer. After a business issue has been identified, available actions are evaluated against the current customer interaction.

Pega Marketing for Financial Services 7.31 provides the following business objectives:

Collection: This issue provides appropriate actions for customers in collections, such as Take a Payment or Negotiate Settlement.

Cross Sell: For existing customers, this business issue provides sales offers for new products that are complementary to current product holdings.

Upsell: For existing customers, this business issue provides sales offers to entice customers to upgrade to higher value products.

Service: This issue provides appropriate service recommendations to customers, such as Update Contact Address or Credit Line Increase.

Sales: This issue provides standard sales offers to both customers and prospects.

Pega Marketing for Financial Services real-time containers Applications can access Next-Best-Action by invoking real-time containers. Containers provide a standard API through REST services. The following table shows the Pega-provided containers in this application. You can find these containers configured in the Next-Best-Action Designer menu of the Pega Marketing portal.

Business issue

Strategy name Container name(s)

Description

Next-Best-Action NBA_TopLevel NextBestAction This real-time container serves “Next-Best-Action” requests. It provides Collection, Make Sales Offers (Upsell/Cross Sell/Sales), and Service Intents for a customer based on Supporting Decision rules “Next-Best-Action” and “Next Best Offer.”

Collection IsCollectionRelevant NBA_Collection

N/A (part of NextBestAction)

Returns a Collection Action such as Payment Plan if the customer is in Collection. No other Sales/Upsell/CrossSell offers will be presented if the customer is in Collection. However, relevant Service Intents will be presented based on definition at the Service Level.

CrossSell IsCrossSellRelevant and NBA_CrossSell

TopOffers and NextBestAction

Provides top cross sell offers to be considered for TopOffers and NextBestAction.

Upsell IsUpsellRelevant and NBA_UpSell


Provides top upsell offers to be considered for TopOffers and NextBestAction.

Sales SalesStrategyRelevanceand NBA_Sales


Provides top sales offers to be considered for TopOffers and NextBestAction.


Service IsServiceRelevant and NBA_Service

N/A (part of NextBestAction)

NBA Service strategy outputs the top two services recommended to the customer as long as the customer is not in collection.

To invoke a container, applications must provide the required information in JSON format. Below is a sample request:

{"ContainerName":"NextBestAction","Channel":"CallCenter","Resource":"Actions","CustomerID":"PEGASAFS-WORK-CONTACT CON-20824","Direction":"Inbound","Contexts":[{Type":"Intent","Value":"phone","Key":"Channel"},{"Type":"Intent","Value":"","Key":"NetPromoterCategory"},{"Type":"Intent","Value":"Txn Review","Key":"IVR"},{"Type":"Intent","Value":"52655582","Key":"AccountNumber"},{"Type":"Intent","Value":"1","Key":"AccountType"},{"Type":"Intent","Value":"CSR interaction","Key":"CurrentPage"},{"Type":"Intent","Value":"Y","Key":"IsInCollections"},{"Type":"Intent","Value":"Y","Key":"ActiveScheduledPaymentPlan"},{"Type":"Intent","Value":"1","Key":"BrokenPromiseCount"}]}

Pega applications such as Pega Customer Service for Financial Services are pre-configured to use the real-time containers referenced here. For more information, see the Pega Customer Service for Financial Services 7.31 Implementation Guide on the Pega Customer Service for Financial Services product page.

Auto Loan container The AutoLoanOffers real-time container is configured to run for the AutoLoans strategy. As of Pega Marketing for Financial Services 7.31, auto loans are now defined in the next-best-action hierarchy under the SecuredLending business group. The AutoLoansOffers real-time container is used to support the auto loan referral scenario for Customer Service for Financial Services 7.31 and Pega Next-Best-Action Advisor for Financial Services 7.31. For more details, see Prequalify Credit Offers via Mobile Devices on the Pega Marketing for Financial Services product page.

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CRM-specific real-time containers The Pega Marketing for Financial Services sample Application provides a series of real-time containers that are integrated to the Customer Relationship Management application suite’s other applications, Customer Service for Financial Services and Sales Automation for Financial Services. These real-time containers are designed to return top offers, services, and actions to sales representatives and customer service representatives. For more details, see the following table.

Container name

Supporting strategy

Integrated application

Description

HandleServiceTask

PrioritizeNBAService

Customer Service for Financial Services

Returns next best service recommendations for the Self-Service Advisor functionality in Customer Service for Financial Services.

SelectChannels

PreferredChannelsforSSA


Returns the recommended contact channel for a customer in the Self-Service Advisor functionality in Customer Service for Financial Services.

PrioritizeOffer NextBestOffer Customer Service for Financial Services

Returns top offer for the Self-Service Advisor functionality in Customer Service for Financial Services.

SalesOffersForProspects

NextBestOffer Customer Service for Financial Services

Returns top offers for the Web-Self-Service functionality in Customer Service for Financial Services for a non-authenticated, unidentifiable customer/prospect.

TopOffersforSalesRep

TopOffersforSalesRep

Sales Automation for Financial Services

Returns top offers on the Sales Representative portal in Sales Automation for Financial Services. These are offers that sales representatives can suggest to prospects.

TopOffersWSS

NBA_Sales Customer Service for Financial Services

Returns top offers for the Web-Self-Service functionality in Customer Service for Financial Services for an authenticated customer.

TopOffers NextBestOffer Customer Service for Financial Services and Sales Automation for Financial Services

Returns top offers to Customer Service for Financial Services and Sales Automation for Financial Services. This is a legacy real-time container.

NextBestAction

PrioritizeNBAOutput


Returns top service recommendations and top offers in the advisor widget located in the bottom left hand corner of the Customer Service Sales Rep portal.

Pega Marketing for Financial Services Next-Best-Action designer The following screenshots show the Next-Best-Action top level definition for this application.


Next-Best-Action is called through the real-time container “Next Best Action”.

Supporting decisions

Next-Best-Action The “Next-Best-Action” container is configured with supporting decision rule “Next-Best-Action”.


The Next-Best-Action supporting rule includes the alternate strategy “PrioritizeNextBestActionOutput” and is configured to return the Action ID's using the NBA_Top Level definition and PrioritizeNBAService strategy, as well as NBATopOffers. This means that Next-Best-Action not only includes service intents (actions), but also top offers. This is a new change in Pega Marketing for Financial Services 7.31 and higher. The NBATopOffers here return the same result as the TopOffers real-time container.

The “PrioritizeNBAService” strategy provides the next best action between the Collections action and Service actions.


Next Best Offer The TopOffers real-time container is configured to run the NextBestOffer supporting decision, which runs the NBATopOffers strategy.

The Pega-provided PrioritizeTopOffers strategy prioritizes upsell offers before cross sell offers and finally, sales offers.


The TopOffers container returns relevant Offers based on the NextBestOffer supporting decision rule. This is designed to return the top offers based on eligibility among Upsell, CrossSell, and Sales offers. Running this container discounts Services and Collections.

Collection node The following screenshot shows the Collection definition as configured in the Pega Marketing for Financial Services 7.31 Next-Best-Action Designer.


Supporting rules

The rules and functionality in the Collections node are designed to support Pega Collections 7.31, which is a separately licensed product. See your Pega Sales representative for details.

Rule name Rule type Description IsCollectionRelevant Strategy Determines the relevancy of collection actions in Next

Best Action. PrioritizeCollection Strategy Prioritizes collection actions by pyweight. NBA_Collection Strategy Supporting collection strategy. NBA_Collection_Actions Strategy Returns the eligible collection actions based as defined

in the proposition data. IsCollectionEligible Proposition Filter Determines whether a customer is in collection and

eligible for the SchedulePaymentPlan collection action.

CrossSell node The following screenshot shows the CrossSell definition as configured in the Pega Marketing for Financial Services 7.31 Next-Best-Action Designer.


Supporting rules

Rule name Rule type Description IsCrossSellRelevant Strategy Determines the relevancy of cross sell actions in Next

Best Action and Next Best Offer. PrioritizeCrossSell Strategy Prioritizes cross sell actions by pyweight. NBA_CrossSell Strategy Returns eligible cross sell offers. IsCollectionEligible Proposition Filter Determines whether a customer is in collection and

eligible for the SchedulePaymentPlan collection action. RejectedInLast7Days Proposition Filter Filters out offers that have previously been rejected by

the customer in the last seven days. CurrentProductHoldings Proposition Filter Filters out offers the customer already owns. DefaultOfferEligibility Proposition Filter Filters out inactive and expired offers. IsCrossSellHomeLoansRelevant Strategy Determines the relevant offers for the home loans

business group level of the cross sell business issue.

Upsell node The following screenshot shows the Upsell definition as configured in the Pega Marketing for Financial Services 7.31 Next-Best-Action Designer.


Supporting rules

Rule name Rule type Description IsUpsellRelevant Strategy Determines the relevancy of upsell actions in Next Best

Action and Next Best Offer. PrioritizeUpsell Strategy Prioritizes upsell actions by pyweight. NBA_Upsell Strategy Returns eligible upsell offers. IsCollectionEligible Proposition Filter Determines whether a customer is in collection and

eligible for the SchedulePaymentPlan collection action. RejectedInLast7Days Proposition Filter Filters out offers that have previously been rejected by

the customer in the last seven days. CurrentProductHoldings Proposition Filter Filters out offers the customer already owns. DefaultOfferEligibility Proposition Filter Filters out inactive and expired offers. DefaultUpSellEligibility Proposition Filter Determines if the customer is eligible for an upsell

primarily by credit score. IsUpsellCreditCardRelevant Strategy Determines the relevant offers for the credit card

business group level of the upsell business issue. IsRelevant Strategy Determines the relevant offer for upselling deposit

accounts.


Service node The following screenshot shows the Service definition as configured in Pega Marketing for Financial Services 7.31 Next-Best-Action Designer.

Supporting rules

The rules and functionality in the Service node are designed to support Customer Service for Financial Services 7.31.

Rule name Rule type Description IsServiceRelevant Strategy Determines the relevancy of service actions in Next-

Best-Action and Next Best Offer PrioritizeServiceOffersbyWeight Strategy Prioritizes upsell actions by pyweight H_NBA_Service Strategy Combines together Account and Customer service type

actions NBA_Service Strategy Returns eligible upsell offers NBA_Service_Account Strategy Returns eligible account type service actions NBA_Service_Customer Strategy Returns eligible customer type service actions IsServiceRelevant Strategy Determines the relevancy of offers at a customer or

account level

Sales node The following screenshot shows the Sale definition as configured in the Pega Marketing for Financial Services 7.31 Next-Best-Action Designer.


Supporting rules

Rule name Rule type Description SalesStrategyRelevance Strategy Determines the relevancy of service actions in Next

Best Action and Next Best Offer. PrioritizeOffersByPropensity Strategy Prioritizes offers by smoothed propensity. NBA_Sales Strategy Returns eligible upsell offers. H_NBA_Sales Strategy Groups all offers for NBA Sales strategy. IsInCollections Proposition Filter Determines whether a customer is in collection and

eligible for the SchedulePaymentPlan collection action. SimplePrioritizationforSales Strategy Selects the top offers at a group level based on

smoothed propensity. NBA_Sales_Bundles Strategy Identifies the bundle offers to return for the NBA_Sales

strategy. BundlesRelevance Strategy Determines the relevancy for bundle offers only. NBA_Sales_CreditCards Strategy Identifies the credit card offers to return for the

NBA_Sales strategy. CreditCardsRelevance Strategy Determines the relevancy for credit card offers only. NBA_Sales_DepositAccounts Strategy Identifies the deposit account offers to return for the

NBA_Sales strategy. DepositAccountRelevance Strategy Determines the relevancy for deposit account offers

only. NBA_Sales_SecuredLending Strategy Identifies the secured lending offers to return for the

NBA_Sales strategy. IsRelevant Strategy Determines the relevancy for secured lending offers

only.


NBA_Sales_HomeLoans Strategy Identifies the home loan offers to return for the NBA_Sales strategy.

HomeLoansRelevance Strategy Determines the relevancy for home loans offers only.

Updating the Next-Best-Action model You can update the NBA hierarchy to suit the customer’s needs.

To add or remove new business issues and groups, click the blue gear icon next to Hierarchy.

After clicking the blue gear icon, you will see a screen similar to the one below. Click Edit and make changes to the business issue or group. Click Save.

Removing any Pega-provided business issues and groups may impact the expected results from the containers provided in the Pega Marketing for Financial Services CRM Sample Application 7.31 and related functionalities.

For more details on how to configure the Next-Best-Action hierarchy, see chapter 3 of the Pega Marketing User Guide 7.31 on the Pega Marketing product page.

You can make additional changes to the Pega-provided Next-Best-Action Designer by editing existing components or creating new proposition filters, strategies, or eligibility criteria. While changes to these rules can be completed in Designer Studio, it is recommended that you do them in the new Next-Best-Action Designer.





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Pega Marketing for Financial Services

Document: Next-Best-Action Design and Configuration

Product Version: 7.31

Updated: November 2017

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