Understand the differences between Next Best Action (NBA) and Next Best Offer (NBO), how these personalized strategies leverage CRM, and how to apply them to improve the customer experience and maximize conversions.
One of the 2025 customer experience trends , personalization is key to winning and retaining customers. To achieve this, companies are increasingly seeking one-to-one personalization with their customers, with two strategies emerging: Next Best Action (NBA) and Next Best Offer (NBO).
Both use artificial intelligence and data analysis to recommend personalized actions and offers, increasing conversion and customer satisfaction. But what’s the difference between them?
What are NBA and NBO?
Next Best Action (NBA) is an approach that recommends the best strategy to take for a customer at a given moment. The goal is not just to sell, but to improve the relationship, ensuring that each interaction adds value. This action can be:
- Send an educational email about a relevant service;
- Suggest proactive support via WhatsApp or call center;
- Recommend a new product or service, but at the right time;
- Avoid unnecessary interactions when the best action may be to do nothing.
Next Best Offer (NBO) : focuses directly on presenting the best product or service offer to a customer based on their profile and behavior. The NBO strategy is widely used to:
- Recommend personalized products in e-commerce;
- Offer exclusive discounts based on purchasing propensity;
- Upsell or cross-sell to increase the average ticket;
- Set dynamic prices based on user behavior.
Tip dhauz
In practice, the NBA and NBO are not mutually exclusive. A well-implemented strategy combines both to deliver relevant experiences throughout the customer journey.
Check out some benefits of implementing both:
– Improves the customer experience by sending relevant content and offers;
– Increases conversion and retention by increasing engagement with personalized actions and offers:
– Automation and operational efficiency;
– Maximizing ROI by reducing acquisition costs and increasing sales funnel efficiency with the correct targeting of offers and communications
Step-by-step guide on how to apply the NBA/NBO to your company:
- Map the customer journey : Identify critical points where NBA and NBO can be applied to optimize the experience.
- Define objectives and analyze KPIs: establish clear metrics, such as increased conversion, customer retention, and average ticket.
- Implement NBA/NBO with AI algorithms: Use machine learning to analyze user behavior and predict the best action or offer.
- Automate CRM: Tools like Salesforce, HubSpot, and IBM Watson allow integration with communication channels and real-time personalization.
- Test and optimize: Use A/B testing ( we’ll talk more about this in another article ) to validate hypotheses and continually improve your approach.
Although these 5 steps may seem easy, some difficulties may arise when implementing the NBA/NBO, such as:
- Data quality and integration: Without consistent data, recommendation models can fail. It’s essential to have a well-structured CRM that integrates with different customer touchpoints.
- Internal resistance: Sales and marketing teams may resist the shift to a data-driven model. Training and communication are key.
- Continuous optimization cycle: NBA and NBO are not fixed strategies. They need to be monitored and adjusted based on customer behavior and campaign performance.
dhauz in practice
Combining artificial intelligence and strategy, dhauz’s Next Best Action solution changed the way the pharmaceutical company approached its customers. Using machine learning to analyze behavioral data, the technology recommended the best marketing actions for each profile, ensuring more precise and effective communications.
The impact was significant: a 4-5% increase in the product’s market share, reduced operating costs, and significantly higher sales conversions. Proof that well-applied data makes all the difference .
To inspire: companies that make decisions based on the NBA and NBO
| Enterprise: | Objective: | Metrics: |
| Netflix | Personalization | NBA: Recommend personalized content based on viewing history.
NBO: Test different covers and descriptions to encourage more clicks on movies and series. |
| Amazon | Product recommendation | NBO: suggest complementary products and personalized offers, increasing customer conversion and average ticket. |
| Spotify | Smart service | NBA: Determine the best time to offer a new card or adjust a credit limit. |
If your company wants to improve retention and maximize conversion, it’s time to adopt NBA and NBO as part of your CRM strategy.
Want to know how dhauz can help you? Let’s talk !
