Several weeks have passed since PegaWorld 2024, and the insights gathered continue to resonate with us at Optima Partners. Amongst the wealth of ideas and innovations presented, three key concepts – Propositions, People, and Patterns – have stood out to our Director of Banking & Financial Services, Ed Knight, and our Director of Customer Strategy & Engagement, Murray Allan. These three P’s encapsulate the core strategies that leading brands are leveraging to stay ahead in the competitive landscape.
Propositions: Enhancing Relevancy by Scaling Action Libraries
One of the most significant trends observed at PegaWorld this year is the acceleration in growth of action libraries – collections of predefined customer interactions and responses. Many brands sharing their success stories expressed ambitions to increase, in some cases more than double, the number of actions they have live before year-end. Their aim is to address a broader range of customer needs and topics. The underlying strategy is simple: the more topics you can address effectively, the more chance you have of being relevant.
Furthermore, these organisations plan to introduce multiple treatment variants for each action and channel as they strive to personalise their content for strategic segments. They’re expanding their action libraries to achieve a service-to-growth ratio that better reflects the frequency, nature and intent of their customers’ interactions.
For example, in retail banking, over a customer’s lifetime, approximately 80% of interactions may be to achieve a task such as making a payment, checking a balance or transferring money between accounts. Just 20% of interactions involve searching for and opening a new product. In retail, this ratio is likely the inverse. This balance is essential to achieving relevance and effective engagement as it better recognises the purpose of customer interactions. By fine-tuning their proposition libraries, brands ensure they meet their customers’ needs more accurately, thereby enhancing satisfaction and loyalty.
People: Investing in Teams for Sustainable Success
Another crucial takeaway from PegaWorld is the emphasis on people. Organisations are increasingly prioritising their workforce, recognising that their people are their greatest asset. Companies are ramping up investments in training and skills development, with many sharing success stories of enhanced employee retention and satisfaction. Moreover, these organisations are creating new career paths and nurturing communities of practice to encourage and facilitate knowledge transfer. Such initiatives not only enhance individual growth but also foster a collaborative environment where knowledge and best practices are shared freely.
Consistent sponsor engagement is another critical aspect highlighted by several speakers, especially for brands navigating multi-year transformations where the magnitude and nature of change is significant and enduring. Describing their journeys, many stressed the need for effective storytelling and continuous narratives. This engagement ensures that everyone, from top-level executives to front-line employees, aligns with the company’s vision and goals. When a vision is clear and well-understood, decision-making becomes easier.
Patterns: Leveraging Design Systems for Efficiency
The third standout theme from PegaWorld is the increasing adoption and innovative use of design systems. Companies are implementing connected frameworks, methodologies, and work practices to drive standardisation and repeatability, ultimately unlocking speed, scale, and efficiency. By embedding these patterns into their operations, companies can streamline processes, reduce redundancies, and accelerate their time-to-market.
The rise of business-user-friendly technology solutions with low/no code applications and interfaces may be catalysing an increase in decentralised operating models. Organisations are striving to democratise core capabilities across their business teams to scale output and yield more from their investments. This decentralisation heightens the demand for design systems to ensure the design and delivery of customer interactions remain consistent and aligned with business strategy.
Summary
As we reflect on the insights from PegaWorld 2024, it’s clear that the three P’s – Propositions, People, and Patterns – are critical components of successful customer engagement strategy and delivery. Leading brands are enhancing their relevancy through expanding their action and treatment libraries, investing in their teams for long-term success, and leveraging design systems to achieve operational excellence.
At Optima Partners, we’re excited to continue integrating these takeaways into our own practices. We aim to help our clients navigate the complexities of the modern business landscape with confidence and agility, not just helping them prepare for the future – but helping them shape it.
Contact Optima Partners today and set up a call with Ed or Murray to discuss how the three p’s can enhance your business.
