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Calculated parameters

Updated on January 22, 2021

Pega Customer Decision Hub for Communications provides reference calculations to decide a next best action for the customer. Pega pre-builds these calculations based on its experiences in the communications industry; however, you can further these calculation parameters to suit your business needs during implementation.

Investment budget
The cost of acquiring a new customer is much higher than the cost of retaining an existing customer. The investment budget calculation uses the Customer Lifetime Value (CLV) and the margins in each of the actions made to customer. Margins amount can be positive (profit) or negative (loss) and are managed by Telcos. These margins are used during the retention negotiation, acquisition, make offers cases to construct an advertised or personalized action that is both appealing to the customer and yet profitable for the service provider. Using an investment budget enables service providers to create a personalized action for customers who might otherwise churn if given a generic action.

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