Tag: Royal Mail

Postcomm hold open meeting on postal strikes (UK)

Posted by | May 19, 2008 | |

On 14 May, Postcomm held an open meeting ‘After the Postal Strikes’ to hear evidence on Royal Mail’s application for suspension of the ‘c factor’ adjustment (restrictions on the level by which Royal Mail can raise prices if service quality is not met) and the bulk mail compensation scheme, following industrial action last year.

Postwatch presented a number of areas in the application which Postcomm should investigate further, including whether:

– the whole of quarter 3 (from 3 Sept to 2 Dec) should be included in the application.
– recovery periods, following industrial action, within the application are reasonable.
– claims for unofficial industrial action should be included.

Postcomm have invited further written evidence by any interested parties on the impact of industrial action and Royal Mail’s application to be submitted by the end of May.

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Customers ready to pay for first class post (UK)

Posted by | May 19, 2008 | |

Residential customers would rather pay a premium for next-day postal delivery than see standards fall, according to Postwatch.

In its latest evidence to the independent review of the impact of competition on the postal market, the consumer watchdog said users were opposed to any move away from the one-price-goes-anywhere service.

Under the terms of the universal service obligation, Royal Mail has to offer one delivery a day to every address in the UK, six days a week. The way this is paid for became a pressing issue this month when Royal Mail estimated the service made a loss of about GBP 100m last year.

Postwatch chair Millie Banerjee said today: “Postwatch is a keen supporter of a sustainable universal postal service which meets the needs of senders and receivers.

“We are acutely aware that declining mail volumes and the recent announcement by the Royal Mail that the UPS has become loss making gives customers real cause for concern about the future of the service they value.”

Included in Postwatch’s submission are the results of research carried out on its behalf among residential customers, small businesses and bulk mailers.

The research found that while the existing universal service obligation met users’ needs, many said some areas could be improved, including reliability and speed of delivery. Residential customers wanted deliveries six days a week while businesses were unconcerned whether they were made five or six days a week.

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Royal Mail and Vialuna launch dialogue mail to help businesses develop deeper customer relationships

Posted by | May 19, 2008 | |

Royal Mail is continuing to support the direct marketing industry in an increasingly competitive advertising landscape by launching “Dialogue Mail”, an innovative customer relationship management solution combining traditional direct mail with digital media.

In partnership with dialogue marketing specialists, Vialuna, Royal Mail now offers an integrated solution that will enable brands to have more in-depth and engaging conversations with prospects or existing customers.

Dialogue Mail capitalises on the power of direct mail to drive customers online. Recent Royal Mail research revealed that over half (55 per cent) of consumers prefer to be contacted by a combination of DM and online and that integrating digital advertising with direct mail campaigns can increase customer spend by almost 25 per cent.

The Dialogue Mail journey begins with an intrigue-based mailshot designed to pique recipients’ interest and direct them online. Vialuna’s technology creates personalised URLs, meaning the campaign is individually tailored to each customer. The interactive microsites can be designed to allow customers to share their preferences, request specific products or information and fundamentally direct their overall customer journey.

Crucially, all interaction is captured allowing the brand to learn more about individual’s behaviour and shape future communications to make them more relevant. Vialuna’s Dialog Engine tracks campaign responses and delivers lead alerts directly to sales teams in real-time.

Dialogue Mail is the latest concept in a series of innovative direct mail solutions from Royal Mail designed to help businesses win customers, build loyalty and enhance their brand through the post. The CRM-focused proposition complements Personalised Integrated Media and Sensory Mail, both launched last year, to make direct communications more engaging.

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Postcomm recommends privatisation of Royal Mail (UK)

Posted by | May 19, 2008 | |

Postcomm, the UK postal regulator, has said that it has proposed to an independent review committee on postal services, to partly privatize Royal Mail to bail it out from financial deterioration.

The BBC News has quoted Nigel Stapleton, Chairman of Postcomm, as saying: “Postcomm wants to see the government and Royal Mail embrace a partnership approach with the private sector to secure a universal service.”

Postcomm has said that Royal Mail required capital to restructure itself and become profitable. Mr Stapleton has said that Royal Mail may require a subsidy if the government decides against privatisation.

Royal Mail was the only mail service in the UK till 2006, when the gates were opened for private players to deliver mails. But it still controls 90% of market share, the BBC News has said.

Postcomm has also proposed that the controller of post office network, Post Offices, be separated from Royal Mail.

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Sell-off of Royal Mail 'doomed'

Posted by | May 18, 2008 | |

A plan by regulator Postcomm to partly privatise Royal Mail will fail because of the company’s huge and growing pension deficit, according to a leading independent consultant.

John Ralfe said Royal Mail was technically insolvent with a GBP 3bn pension hole. ‘No trade or equity investor would even consider taking a stake unless Royal Mail could be shorn of its pensions,’ he said in a research note for RBC Capital Markets.

Ralfe said that even if the Government, Royal Mail’s owner, could be persuaded to run the pension scheme, it would be illegal because it would be a clear breach of the EU Treaty that bans anti-competitive state aid.

Postcomm’s suggestion that Britain should follow the lead of the Danish and Swedish postal services in allowing partial privatisation was not valid because neither had to cope with such huge pension liabilities.

The Postcomm plan has run into further opposition, with the Communication Workers Union, the main postal workers’ union, suggesting that the proposals overstepped the regulator’s remit.

And the Government would face opposition from its own MPs with close links to the CWU. Royal Mail announced last week that it made a GBP 279m loss in the year to March. And the company has two new and emerging problems.

First, mail volumes are starting to decline. And second, Royal Mail has been forced to open up its business post services to competition.

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