Postwatch: 2007/08: Customer expectations were not met

Royal Mail released its performance figures for 2007/08. As expected these show a substantial decline against the previous year’s record breaking performance and that the company failed to achieve 9 of the 12 minimum service targets in its licence. Royal Mail’s performance was severely affected by official and unofficial industrial action.

Millie Banerjee, Chair of Postwatch, commenting on Royal Mail’s performance said: “Royal Mail’s recovery was severely blown off course by last summer’s strikes. Figures released today confirm that customers received poor levels of service. Furthermore, the fourth quarter results show that Royal Mail’s recovery from the industrial action was in some respects disappointingly slow.

“What the figures do not reveal is what effect the strikes have had on the posting habits of social and business customers. Many of these customers had to find other ways to communicate. This will have reduced postal volumes, which will in turn damage Royal Mail’s financial stability for years to come. Average daily volumes are down from 84 million items to about 80 million. It looks like the start of a downward trend partly caused by customers being forced to find other ways to pay bills, receive statements, order goods or respond to enquiries.

“When Royal Mail published its report and accounts on 23 May, its Chairman Allan Leighton said:

“the group led by Adam and the team has consistently exceeded expectations and met all the targets set by the shareholder”.

“Because of strike action, customers for most of last summer could not post with any confidence. Customer expectations were definitely not exceeded – indeed, were not met. Royal Mail’s management team should focus on providing what customers want and need from them. “