Market research into customers' needs from the postal service and analysis of the net cost of aspects of the current universal service (UK)
Postcomm has today published some important research findings to help inform the debate that was started in its Strategy Review issued in August 2007 about what sort of universal service would meet the needs of today’s customers. Publication coincides with Postcomm’s second submission of evidence to the Independent Review Panel.
This research was undertaken to help inform Postcomm’s policy making; none of the research represents policy proposals as such.
Postcomm’s research covers two important areas:
1. Market research carried out in 2007 into customers’ needs from the postal service in the UK. This adds to the body of research carried out jointly by Postcomm, Postwatch and Royal Mail in 2006 and to research that Postwatch plans to publish shortly. This work was commissioned by Postcomm because Royal Mail have little recent and detailed information about what customers need from a universal service.
2. Econometric modelling to estimate the impact of changes to some aspects of the current universal service on Royal Mail’s costs and revenues. This work was commissioned by Postcomm because Royal Mail’s own costing system was not designed to produce any information of this nature. Royal Mail has co-operated with the research and analysis, providing data and participating in discussions on the methodology used and the validity of many of the underlying assumptions.
Postcomm believes that the research is based on the soundest possible approach in terms of econometric modelling, cost derivation and the use of consumer research. However, as with all research, there are limitations and these are explained fully in the reports.
Postcomm has today published some important research findings to help inform the debate that was started in its Strategy Review issued in August 2007 about what sort of universal service would meet the needs of today’s customers. Publication coincides with Postcomm’s second submission of evidence to the Independent Review Panel.
This research was undertaken to help inform Postcomm’s policy making; none of the research represents policy proposals as such.
Postcomm’s research covers two important areas:
1. Market research carried out in 2007 into customers’ needs from the postal service in the UK. This adds to the body of research carried out jointly by Postcomm, Postwatch and Royal Mail in 2006 and to research that Postwatch plans to publish shortly. This work was commissioned by Postcomm because Royal Mail have little recent and detailed information about what customers need from a universal service.
2. Econometric modelling to estimate the impact of changes to some aspects of the current universal service on Royal Mail’s costs and revenues. This work was commissioned by Postcomm because Royal Mail’s own costing system was not designed to produce any information of this nature. Royal Mail has co-operated with the research and analysis, providing data and participating in discussions on the methodology used and the validity of many of the underlying assumptions.
Postcomm believes that the research is based on the soundest possible approach in terms of econometric modelling, cost derivation and the use of consumer research. However, as with all research, there are limitations and these are explained fully in the reports.
Postcomm will be undertaking further research on a number of aspects of the universal service. In the submission to the Independent Review Panel, Postcomm has said that without a radical transformation of Royal Mail to increase both its efficiency and pace of innovation, it is most unlikely that the universal service can be provided on a basis where revenues fully covers the costs. Postcomm’s evidence makes a number of proposals that are designed to promote such a radical transformation over the next few years, but it is not recommending any changes to the activities in the universal service.
