Decisioning Sophistication Map

1: Precalculated

The most basic type of decisioning solutions use customer segmentation to predict which next best action will be most relevant to a group of customers when they next arrive in a channel.

Advantages: Simplicity, maintainability & scalability.

Disadvantages: Potentially irrelevant customer experiences and annoyingly inappropriate messages that are decided in advance and don’t account for the individual customer or their situation.

2: Reordered

The second type of decisioning solutions often use customer segmentation and can drop a customer into a new segment based on the context of an interaction.

Advantages: Basic segmentation concepts are widely understood in organizations.

Disadvantages: The lack of instant re-decisioning and machine learning will result in lower incremental revenue and lower customer experiences than dynamic decisioning.

3: Dynamic

The most advanced decisioning solutions include the ability to make decisions at an individual customer level within milliseconds of a customer’s context changing. This is achieved by leveraging existing customer data, instant customer context, event data, rules, predictive models, machine learning and contextual value based arbitration with the ability to understand all the journeys that a customer is currently in.

Advantages: More relevant customer experiences and offers that result in the highest financial returns.

Disadvantages: The resources required to deploy and manage a dynamic decisioning solution are only viable for organizations operating at scale.

If you’d like to discuss the three types of decisioning or other topics with the Customer Decisioning Institute’s team please contact us.

View the Customer Decisioning Glossary to learn more about the functionality in the three types of decisioning