Real-Time Decisioning Tools Critical to Meeting Increased Customer Expectations, Research Finds

Rhea-AI Summary

Pegasystems Inc. (NASDAQ: PEGA) released findings from a global study conducted by Savanta, indicating the growing importance of real-time decisioning technology in enhancing customer experience and reducing churn. The research, which surveyed over 3,500 decision-makers across various industries, revealed that 68% prioritize keeping pace with rising customer expectations, while 46% report low customer engagement. Although 61% of users of real-time solutions experience reduced churn, barriers to broader adoption persist, with 78% citing personnel challenges. Maximizing the use of real-time tools remains crucial for businesses.

Positive

• 63% of users of real-time decisioning report happier customers.
• 61% experience reduced customer churn.
• 55% see an increase in customer acquisition.

Negative

• 46% of organizations report high rates of customer disengagement.
• 43% see significant customer churn.
• 78% of non-users cite personnel issues as barriers to adoption.

CAMBRIDGE, Mass., April 19, 2021 /PRNewswire/ -- Real-time decisioning technology can play a critical role keeping customers happy, reducing churn, and improving the customer experience in the face of ever-increasing expectations, according to new research by Pegasystems Inc. (NASDAQ: PEGA), the software company that crushes business complexity. The global study, conducted by research firm Savanta, surveyed over 3,500 decision-makers in 11 countries and across six industries on their approach to customer experience and real-time decisioning.

Although the study found real-time decisioning tools are now more important than ever, it also highlighted that some barriers still exist to both widespread adoption and maximizing the technology's potential.  Key findings include:

• Real-time decisioning can help make business priorities a reality: Sixty-eight percent of respondents said that keeping up with increasing customer expectations was their top priority – a challenge given that 46% of organizations reported a high rate of customers don't engage with communications, and 43% see a high rate of customer churn. In addition, 49% of businesses admitted to high numbers of customers raising complaints and issues. However, those already using real-time solutions reported happier customers (63%), reduced churn (61%) and even an increase in the acquisition of new customers (55%).

• 1:1 engagement and real-time solutions are both becoming more important: Eighty-two percent of all respondents familiar with real-time decisioning agreed that COVID-19 has made the use of real-time decisioning technology more important. Meanwhile, 77% of businesses agreed that to be successful, they must engage customers individually based on their behavior and preferences (up slightly from 75% when a 2019 Pega study asked the same question). Sixty-three percent agreed that mass marketing to customers is a thing of the past (compared to 60% in 2019), suggesting a sustained move towards engaging with customers individually.

• People, not technology, are the biggest barriers to adoption: When asked what the challenges were to their company implementing real-time decisioning, 78% of those not currently using real-time tools cited issues with people. This included 31% who cited a lack of employees adopting the necessary technologies and process, 30% who pointed to a lack of people with the necessary skill sets, and 29% who felt a lack of support or sponsorship from senior business leaders. Meanwhile, 58% of those not currently using real-time decisioning cited technology or operations issues as a challenge to adoption, with 29% pointing to a lack of data or analytical capabilities. Twenty-six percent cited regulatory and/or compliance constraints and 23% blamed poor or outdated technology as an obstacle.

• Many businesses are not making the most of real-time decisioning tools: Of companies currently using real-time technology, only 38% were re-scoring and re-decisioning on a real-time, continuous basis. This means that although they were seeing some benefit from decisioning, they were not fully maximizing its potential. By using the technology in real-time and not hourly, daily or weekly, organizations could start to see far more tangible benefits.

Quotes & Commentary:

"The world's getting smaller and more digital every day, and organizations have to work hard to provide a customer experience that stands out in an increasingly crowded marketplace," said Rob Walker, general manager, 1:1 customer engagement, Pegasystems. "Moments of opportunity can open and close in a second or less, and real-time decisioning tools can help grasp them by taking into account a customer's immediate context and using it to significantly increase relevance where it's needed most. The time to tear down implementation barriers and embrace real-time decisioning is now. Companies will be rewarded by staying one step ahead of the competition and providing a hyper-personalized experience that will delight customers by being relevant."

Supporting Resources:

Download Real-time decisioning, real results: https://www.pega.com/results-are-real-time

Notes to Editors

To understand how real-time decisioning is defined in the market and how organizations are tackling customer experience  challenges in this new era, Pega conducted a global survey of over 3,500 participants in 11 countries and across six key industries.

About Pega

Pega delivers innovative software that crushes business complexity so our clients can make better decisions and get work done. We help the world's leading brands solve their biggest business challenges: maximizing customer lifetime value, streamlining customer service, and boosting operational efficiency. Pega technology is powered by real-time AI and intelligent automation, while our scalable architecture and low-code platform help enterprises adapt to rapid change and transform for tomorrow. For more information on Pegasystems (NASDAQ:PEGA), visit www.pega.com.

Press Contact:
Jon Brigden
Pegasystems     
jon.brigden@pega.com          
Twitter: @pega 

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SOURCE Pegasystems Inc.

FAQ

What are the key findings from Pegasystems' recent study on real-time decisioning?

The study revealed that 68% of decision-makers prioritize meeting increasing customer expectations, with 63% of real-time decisioning users reporting happier customers and 61% experiencing reduced churn.

How does real-time decisioning technology affect customer engagement?

Real-time decisioning technology helps enhance customer engagement, as 82% of respondents noted its increased importance due to COVID-19, leading to significant improvements in customer satisfaction.

What challenges do companies face in adopting real-time decisioning tools?

78% of companies not using real-time decisioning cite personnel issues, including lack of adoption and support, while 58% identify technology and operational challenges.

What percentage of businesses actively re-score and re-decision using real-time tools?

Only 38% of companies currently using real-time decisioning technology are utilizing it on a continuous basis, indicating that many are not fully leveraging its potential.

How does Pegasystems' study highlight the role of technology in customer experience?

The study emphasizes that real-time decisioning technology is critical for businesses to adapt to rapid changes in customer expectations, particularly in an increasingly digital marketplace.