Pega NBC 6.2 Exam - Next Best Action Consultant Flashcards
Are companies interested in retaining all customers at all cost?
Prepared by Andre’ Cesta
No
Can decisioning be applied to offers and channels or just offers or just channels?
Prepared by Andre’ Cesta
To both offers and channels.
What is more generic? Predicting customer propensity to buy or predicting customer behaviour?
Prepared by Andre’ Cesta
Customer behaviour.
What can be used as a part of the campaign segmentation/targeting to ensure that we are not targeting customers with offers that they would have bough anyway even without targeting?
Prepared by Andre’ Cesta
Control groups.
Customer communications need to be T_ _ _ _ _; C _ _ _ _ _ _-S e n s i t _ _ _; R _ _ _ _ _ _ _ and C _ _ _ _ _ _ _ _ _.
Prepared by Andre’ Cesta
Timely (at the right time); Context-Sensitive (if the customer calls to complain it will not try to sell immediately; Relevant (otherwise the customer will not accept them); Consistent (it remembers what was said before and it is based and aligned with our company strategies).
This Pega set of four customer communication requirements is very similar to marketing TICC: targetted; interactive; continuous; controlled. Or to integrated marketing communications 4Cs: Coherent; Consistent; Complementary; Continuous. But for some reason Pega wants to use their own terminology.
Timely; Context Sensitive; Relevant; Consistent are properties of what?
Prepared by Andre’ Cesta
Customer communications.
Growth; Service; Retention; and Risk Mitigation are four areas of concern for what?
Prepared by Andre’ Cesta
For business issues; for predictive models; for propositions; all of these can fit these categories. But for Pega memorization it is about business goals.
What are the four areas of concern for business when creating next best actions?
Prepared by Andre’ Cesta
- Growth (sell more; acquire more customers);
- Service (improve quality; satisfaction; educate customers);
- Retention (Provide the correct incentive at the right time for keeping our customers from leaving us);
- Risk Mitigation (know customers who are likely to default/not pay or are likely to be low value and act accordingly);
Should next best action generate value for the customer? The company? Or both?
Prepared by Andre’ Cesta
Both.
The more customers a company has; the more rooms occupied in a hotel the better?
Prepared by Andre’ Cesta
No. Nowadays it is not about occupation or customer base size maximization, but about: margin/yield optimization. Less customers which generate more revenue are more relevant.
NBA is about segments of size _. Or in other words about treating each customer as an _ _ _ _ _ _ _ _ _ _.
Prepared by Andre’ Cesta
1 individual.
Should a call reason of cancelling an account probably trigger a sale strategy? What strategy it is more likely to trigger?
Prepared by Andre’ Cesta
No. It is more likely to trigger a retention strategy.
Would the reason for leaving: competitor; no money; death be important input for the adaptative model to decide on an offer?
Prepared by Andre’ Cesta
Yes. You could even collect the competitor name if you know your top competitors and this could help predict for how much budget you are likely to retain that customer.
What are control groups used for? What do they have to do with beating the dead horse or in some languages (raining on the wet) when it comes to campaigns targeting customers?
Prepared by Andre’ Cesta
Control groups ensure we do not target customers who would have bought anyway, but instead customers who need some explanation/offer/education in order to develop the need/want to buy.
What is lift? What is its formula?
Prepared by Andre’ Cesta
(Percent of responded / Percent targetted) * 100. E.g. 20% / 1% = 200.
When targeting 100% of the population what is your lift equal to?
Prepared by Andre’ Cesta
The percentage of responders in the population (e.g. 50% or 20% if less people respond to this campaign).
True or false? The more customers an organization has; the more transactions the more next best actions?
Prepared by Andre’ Cesta
True.
Can NBA rules operationalize business directions and strategies? Can you mention another purpose for NBA rules?
Prepared by Andre’ Cesta
Yes. If they do not or if they go against business directions and regulations they should be reviewed. It is true that they operationalize business directions and strategies, but they call and be about regulations.
Predicting customer behaviour benefits: the business; the customer; both; none.
Prepared by Andre’ Cesta
Both. Marketing is about generating win win relationships. It is true though that sometimes marketing pushes people to over-consuption which is not always to their benefit. But the correct answer is about good marketing and educating and captivating customers; and building long term relationships with them. This is how brands are built. And them they will buy more from you because they are delighted and not because of consumerism.
What types of data can be input into a predictive or adaptative model? Can you provide classifications/categories for this data?
Prepared by Andre’ Cesta
- Social and demographic;
- Product holdings and usage (FRAC: frequency, recency, amount and category of use, ARPU);
- Customer interaction data (complaints; inquiries; behavioural);
- Contextual data from interaction (channel; call reason).
Also other categories (sometimes orthogonal or overlapping to the above): demographic; psychographic; behavioral.
If there is a credit risk than mitigate that risk; else if there is a churn risk then start/use a retention strategy; else see if there is a sales opportunity.
The above script conditional logic to select from multiple flows of campaign sub-strategies can be implemented via what type of strategy selection component (not segmentation, nor arbitration component)?
Prepared by Andre’ Cesta
A switch component.
Decision trees or tables are segmentation components and not selection components, and moreover decision trees or table just produce a result that is usually mapped to pxSegment, but they do not directly select a sub-strategy. In order to select a sub-strategy and its propositions you need to apply a switch component. Alternatively you could filter on proposition type, but filters are not selection components, but arbitration components.
What does CLV stand for?
Prepared by Andre’ Cesta
Customer Lifetime Value.
Which one these three make up a decision strategy?
1. Data; 2. Predictive models; 3. Business Rules.
Prepared by Andre’ Cesta
Answer: 2 and 3 only.
- Data comes from outside the strategy.
When can a next best action be made? Choose the best answer:
- Every time a new piece of information is received.
- At the start of an interaction and every time the customer responds.
- At the start of an interaction and when the customer contact reason is captured.
- At the start of an interaction and at the end, after the customer response is captured.
Prepared by Andre’ Cesta
- Every time a new piece of information is received.
This answer is more generic. The others give specific rules of engagement that do not cover all cases.