Postal Agencies Diversify to Fight Volume Decline
MADRID, Spain; March 13, 2013 – Faced with a nearly 50-billion piece decline in global mail volume over the past three years, rising employee pension costs and increasing competition from private, commercial postal operators, the world’s postal agencies are fighting back by diversifying services and leveraging technology, according to a new study from Accenture (NYSE:ACN).
- Digital mail: No postal operator has seen real value or positive financial impact from the expansion of digital mail. None of the digital solutions currently in the market have resulted in significant profit nor achieved broad adoption.
- Parcels and logistics: Postal agencies, driven by continuing eCommerce growth, have grown their parcel delivery capabilities and diversified services to move into logistics to meet demand. This growth also is creating more opportunities for private carriers.
- Retail diversification: While some postal operators are questioning how to leverage their retail outlets, high-performing posts are branching out beyond stationery, office supplies and greeting cards into convenience products that include bill payment centers, motor vehicle registration, passports and other government services.
- Pricing and product innovation: Using technology to add value to traditional mail and taking advantage of pricing flexibility are having a positive impact on the industry, driving revenue growth an average of 1.5 percent annually.
- Cross-border eCommerce: Posts are starting to take advantage of this new trend, expanding beyond domestic delivery to surrounding countries and regions, and developing solutions for this new market
- Consumer focus: Postal agencies are creating new services that focus on the recipient – and not the sender – of mail, including narrower windows of delivery or the ability to redirect a parcel delivery to a new location. These services are giving consumers more control over package deliveries and providing postal agencies with a new revenue source.
- Canada Post Corp.’s new online service, Precision Targeter, is a self-service tool that is used to prepare and send unaddressed advertising mail.
- Itella’s NetPosti, which sends digital scans of printed mail to its customers in Finland, grew volume 700 percent between 2005 and 2010.
- Correios Brasileiros (Brazil Post) partnered with Banco do Brasil to provide financial services. Six thousand post offices are connected to the internet and offer financial services.
- U.S. Postal Service Every Door Direct Mail allows small businesses to target mail by neighborhood, ZIP Code or city instead of specific addresses. The program generated $153 million in new revenue in the first eight months and is projected to reach $1 billion by 2016.
- Australia Post leverages its 4,500 retail outlets across the country by offering bill payments and passport applications, and accepts payment for government services that include motor vehicle registrations and fishing licenses.
- Poste Italiane (Italy) offers financial services, telecommunications services and expanded retail products through its outlets.
- bpost’s (Belgium) RelatioMail has increased the value of transactional mail to consumers through redesign of the mail piece.