Customer communications management

Customer Communications Management (CCM) is a term highlighted by research companies such as Gartner Group, Forrester Research, InfoTrends, and Madison Advisors to define a convergent set of Information Technology solutions that together provide organisations with the ability to advance the way that they communicate with their customers.

Customer communications management (CCM) is defined by Gartner Group, the "Magic Quadrant for CCM Software" publisher, as 'the strategy to improve the creation, delivery, storage and retrieval of outbound communications, including those for marketing, new product introductions, renewal notifications, claims correspondence and documentation, and bill and payment notifications. These interactions can happen through a widespread range of media and output, including documents, email, Short Message Service (SMS) and Web pages. CCM solutions support these objectives, providing companies with an application to improve outbound communications with their distributors, partners, regulatory bodies and customers.[1]

Initial Customer Communications Management concepts were focused upon the utilisation of company transactional documents. These documents such as bank statements, statement of account, invoices and other customer transactional documents were viewed as ideal media to promote company products to customers.

The rationale behind this was cited in analyst research by InfoTrends that, "transactional documents are opened and read by more than 90% of consumers. Because the average consumer is bombarded with advertising, e-mail, direct mail and other forms of solicitation each day, TransPromo can help you cut through the clutter and stand out."

Not only are transactional documents more likely to be opened and observed than other types of document, they are also more likely to be studied for longer than say a direct mail piece. Thus, a company has an opportunity to communicate and promote its message to the customer. Customer Communication Management (CCM) was created and developed for PITNEY BOWES and Group 1 Software by Jeff Cohen. CCM has become an industry term used by participating companies and analysts.

The technology that supports customer communications management also allows sophistication in the content of the messages. Customer communications management technology may consist of the following components:

  1. Data Extraction, Transform & Load software
  2. Data Management, Analysis and Location Intelligence software
  3. Data Hygiene database software
  4. Document composition software
  5. Electronic document archive software and perhaps payment processing functionality
  6. Print Stream Engineering / Post Processing Software
  7. Mailing compliance database software
  8. Printer Management Software
  9. High and medium volume production printers
  10. Envelope inserter machines
  11. Email Marketing Software
  12. SMS Communication Software
  13. Mobile Media based content distribution software
  14. Entering the frame more recently social media distribution software
  15. Document Production Reporting Software
  16. Portal Technology
  17. TransPromo Application software

The data extraction software presents marketers and business with an opportunity to combine data from multiple systems to enable a customer analysis. Through this customer analysis process it is possible for marketers to evaluate the marketing mix and position individual products to the customer in respect of relevance to the customer or the results of purchase propensity model.

The end result of this process will be the creation of a data model, data acquisition and decision rules that enable a document composition engine to follow its own set of document application rules to construct individual documents on the basis of data items contained within an individuals data record.

Thus the concept of one-to-one marketing is established.

It is theoretically possible at least that for a run of 100,000 statements, no statement will contain the same set of offers. Thus, women's clothing would not be marketed to men whilst 'male gadgets' would not be marketed to women.

But Customer Communications Management is not just about making offers to customers. It also provides companies with the opportunity to improve the clarity of their communications. Rather than producing line driven data in which it is difficult for a customer to extrapolate trends and a deepening of understanding in respect of his or her relationship with the supplying company, Customer Communications Management provides the opportunity for a company to deliver visual analysis through clear graphics and highlighted content.

The Document Composition engine is responsible for interpreting data and following a set of rules to create a set of documents that can either be printed or distributed electronically. The Document Composition engine usually produces either a print stream or, XML data.

As documents move from the virtual data environment into becoming something physical, the may first need post processing. Post processing can be utilised to prepare a print job for production and distribution. This may include tasks such as the application of barcodes to deliver individual mail piece instructions to the inserters and to vary these in terms of the actual inserter being used. For example, one manufacturer’s inserter may require different barcode instructions to complete the same task than another.

Post processing does not only cover production preparation. One of the key cost considerations in Customer Communications Management is the cost of mailing. Various postal operators throughout the world offer discount schemes if a volume mail producer pre-sorts mail before despatch. As this process saves the postal operator considerable effort and cost, a discount is passed to the mail producer. Where mailing volumes are high, this discount figure can be significant to the mail producer where for example the Royal Mail in the UK will offer 18% discount to customers who pre-sort their mail into 120 'pots'.

Post processing may not suit all mail sortation needs however and for organisations who produce many smaller jobs, a Mail Sortation machine, situated as the very last element of the production process may be more suitable. Many smaller jobs can be aggregated through the day and then bundled together for a physical mail sortation process.

Sometimes, Post Processing may be an integral part of the document composition process and this may be more efficient from a production point of view because rather than creating a two step document creation and processing process, it can be delivered in a single step and as part of the major document application. This may save production time.

Print Management software controls the routing and distribution of print jobs to either a single production printer or a fleet of production printers. Print management software does not just provide routing as a benefit though, it also provides a mechanism for assured delivery (ensuring that all pages get printed) through communication and feedback from print devices and also provides management information that is useful for Document Production Managers.

Production printers in themselves have been a key driver in the development of Customer Communications Management as a concept. The advent of high speed, 90 page per minute and faster economic colour production printers in recent years has driven the usefulness and power of Customer Communications Management meaning that a company can produce 'print shop' quality documents 'on the fly' utilising data that may be infinitely variable as in one-to-one customer communications documents.

The final step of the process and the final major utiliser of data derived upstream in the inserting / mail finishing process. This is where paper documents are combined with envelopes and sealed. The inserter uses camera technology to read a barcode that provides a Piece ID, often combined with a data file produced by either the document composition application or the post processing engine.

By obtaining the Piece ID and performing a data file look-up, the inserter is able to determine factors such as the number of pages for a particular mail piece, whether any additional physical inserts are required (such as leaflets)and whether or not a piece should be out sorted for special human handling.

Thus the inserter is able to determine what should go in each envelope. Through further downstream cameras and sensors, it is also able to determine the integrity of a particular piece.

But this is not where Customer communications management ends. The provision of a document archive means that after a document has been created by the document composition engine, it can be made available to a company call centre or website. Call centre users benefit from being able to engage a customer by seeing the document that the customer has in his hand. This saves money in call centres speeding up call centre client query resolution times and meaning that call centres can handle more customers with fewer staff.

The delivery of documents via electronic channels is also seen as favourable, giving consumers a choice of document receipt method that suits their lifestyles. Combined with electronic payment, this may accelerate cash collection and thus improve a company’s cash flow position.

Chief Marketing Officers and Chief Digital Officers are adopting Customer Communications Management because it heralds a world of new opportunity and a new way in which to develop customer relationships through a data-driven approach targeting multiple devices across various screens of the consumer experience (desktop, laptop, tablet, phablet, mobile phone and wearable).

Relevance of communication is seen as key in overcrowded, competitive markets where service differentiation can be difficult. Documents that add value to the customer relationship are a major factor in improving customer retention and acquisition. Employing a Customer Communications Management solution can help organizations improve all these customer experiences efforts on a multi-channel communications level.[2][3]

CCM: How it is done today

Enterprise application on premises

When customer communications management (CCM) software was launched in late 1980s, the subscription options were limited to internally operated commercial licenses. A majority of CCM vendors have kept their offering unchanged since then. It is often a challenge for small-medium businesses to use leading CCM software due to high procurement costs, infrastructure requirements and maintenance expenses. However, large scale organizations and enterprises who do not have budgetary constraints, have been reaping the benefits of cutting edge technologies.

SaaS based application subscription

In the Customer Communications Management space, vendors offering SSoftware as a Service (SaaS) based subscriptions are relatively low. A couple of companies have built native cloud platform to manage the entire CCM lifecycle. Doxee has already started selling SaaS subscription and strongly expanding their partner network. Leading CCM platforms – HP Exstream and GMC Inspire are not too far. GMC Software technology is offering Inspire Cloud Suite where HP has recently announced HP Exstream Cloud Production for business services.

The emergence of SaaS has opened the grounds for ideal and affordable solution for small-medium businesses to enterprise companies. However, in the customer communications management space, the revolution is still awaited.

Customer Communications Management (CCM) as Managed Services

CCM as Managed Services is the latest proposition that is a mixture of SaaS and services. This is an ideal solution for small-medium businesses that struggle with both- budgetary challenges for in-house CCM platforms and skilled staffs. Introduction of CCM as Managed Services has started bridging the gaps between small-medium businesses and financially abled organizations. The new service is expected to be a game changer as it eliminates the need of any capital investments into technical infrastructure, licensing or in-house team and offers CCM at variable costs. However, there are only a few vendors offering CCM as Managed Services.

See also

Wikimedia Commons has media related to Customer communications management.

External links

References

  1. ↑ Gartner IT Glossar
  2. ↑ 'Improving Customer Experience a Top Priority in Customer Communications Management' - Info Trends Study, July 2015
  3. ↑ '5 Ways Customer Communications Management Improves Your Customer Experience Efforts'- Tom Roberts, April 2014
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