Think of the times you received personalized mail that includes your name, the product you just ordered, or an important date you need to remember. These are documents containing explicit variable data–tangible elements designed to make communication personal and relevant to you. But what about the hidden forces that enhance your experience with documents? These unspoken elements, implicit variables, work behind the scenes to adjust communication efforts dynamically.

Both explicit and implicit variables have a place in document applications. Explicit variable data allows companies to communicate with customers as individuals and shows they value the customer relationship. Implicit variables control document elements without revealing the criteria or the results of the data analysis. Both types of variable data enhance customer engagement and improve overall communication effectiveness.

Key Differences Between Explicit and Implicit Variable Data

Explicit variable data offers clear and direct personalization. It includes easily identifiable details like a customer's name, address, or last donation amount on a direct mail piece. This data makes the communication feel personal and relevant to the recipient.

Most of the information we see on transactional documents is explicit variable data. This includes details about balances, purchases, and payments on bills or credit card statements. More examples include claim information on explanation of benefit forms for health insurance, deposits and withdrawals on bank statements, or usage data noted on utility bills.

Implicit variable data operates in the background. It triggers automated processes or content adjustments based on predefined rules. For instance, implicit data might adjust the marketing offer customers receive based on their purchase frequency. They may not see the data directly, but it tailors their experience. Direct mail marketers use implicit variable data like gender, age, credit score, geographic location, etc. to control much of the content on a mail piece, including the images. They don't tell the recipient how the data controlled the content–that would seem creepy. They use the data to allow their document composition software to create nearly unlimited versions of the mail pieces, aligned with values in the data.

Transactional document designers can use many of the same techniques to increase the effectiveness of the documents they send via postal mail.

Leveraging both types of data enhances the effectiveness of an organization's communication strategies. Explicit variables grab attention with direct personalization. Implicit variables ensure the content aligns with individual preferences and behaviors.

Transforming Transactional Documents with Implicit Variable Data

Consumers almost always open and read transactional documents, which are inherently personal communications. Back in the day, document producers would add promotional or informational content to these documents using envelope stuffers or generic statement messages–a decidedly impersonal approach. Today, document composition platforms can tweak promotional content and other elements of transactional documents, making them more interesting and useful to customers.

Implicit variable data allows companies to dynamically adjust the inclusion of a promotional offer based on a customer's recent buying history or their loyalty. Demographic factors can also play a part in selecting the statement message most likely to generate a positive result. Companies can even keep track of the messages previously presented to individuals and rotate them to test the offers.

For years, my cell phone bill featured the same generic statement message month after month. It had no relation to my account. Naturally, I stopped paying attention to that area of the bill. If the company ever changed the text to something important to me, I would not have even noticed.

Unlike generic messages or statement stuffers, a tailored approach with implicit variables creates meaningful recipient-tuned messages and offers. No longer is it necessary to waste space on a busy transactional document displaying content that customers regard as irrelevant or impersonal.

Another powerful use of implicit variable data involves adjusting the layout and design elements of documents. Suppose a customer frequently interacts with their account online; the printed document could highlight online payment options or tutorials. This dynamic customization fosters a more personalized experience and can simplify the customer's overall interaction with the company's services.

The goal of using implicit variable data is to drive engagement without the customer explicitly knowing their data triggered these customizations. This means enhancing the usefulness and relevance of transactional documents in a subtle yet impactful way. Techniques might include altering the sequence of information, highlighting certain areas based on customer preferences, or incorporating timely service updates relevant to the customer.

In transactional documents, implicit variable data can also affect the contents of a mailing in a major way. I have told the story before in this column of the 20+ page document my bank sent me listing the new fees and rules for every account they offered. How much more effective would that mailing have been if they had used variable data from my customer record? They could have highlighted information about the accounts I held, instead of forcing me to find it scattered somewhere throughout the pages!

Making Mail Better

The mailing industry has done everything they can to make the production and distribution of transactional documents efficient. Document producers have driven cost out of the process by automating workflows, updating equipment, and maximizing postage discounts. Though companies continue to take advantage of developing technology, they won't find many more ways to lower the cost companies pay to communicate with their customers through printed bills and statements.

The next step is to look at the documents themselves and strive to make them more effective. Help companies benefit more from the money they spend on printed and mailed transactional documents with increased personalization and better targeting. Use implicit variables to ensure every document that comes off a press and goes into an envelope is optimized to communicate one-to-one with the individual receiving it.

Mike Porter at Print/Mail Consultants creates content that helps attract and retain customers for companies in the document industry and assists companies as they integrate new technology. Learn more about his services at www.pmccontentservices.com. Follow @PMCmike on X, or send him a connection request on LinkedIn.