Tag: Royal Mail

Royal Mail's proposals for zonal business post pricing comes under fire

Royal Mail last week called for changes to its pricing structure, which would include dropping its obligation to offer a single price to deliver franked business post to any address in the UK.

But the Periodical Publishers’ Association (PPA) said the proposals would increase the cost of magazine delivery in London by 2.5%, on top of a 10% hike already due in April this year.
The organisation passed Royal Mail’s proposal off as “benefiting no-one but Royal Mail, and hugely damaging the magazine industry.”

The proposals, which include a 6p rise in the cost of a first-class stamp, have also been lambasted by PostComm, but have met with some sympathy from direct mail printers.

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Direct marketers get Royal Mail 'boost'

It has been suggested that the new pricing plans unveiled by Royal Mail could have a significant benefit for the direct marketing sector.

According to economist Ian Senior, the direct marketing industry could gain from the proposed changes, which would see business post charges reduced while domestic postal charges would be increased.

He explained to the Telegraph that the changes will mean companies will be able to afford more mail shots.

However, another important way for a firm to increase its value for money from a direct marketing campaign is to employ data cleansing processes so that it can reduce any losses caused by dirty data.

By carrying out data cleansing processes, a firm can get rid of any dirty data from its systems, thereby providing a high standard of data quality and ensuring that mail shots are not sent to old or incorrect addresses.

As Mr Senior himself pointed out when referring to the potential postal changes, “it is all about keeping costs down”, and the same benefits can be found in a data cleansing exercise.

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MPs warn competitive pressures threaten ability to cross-subsidise

Competitive pressures on Royal Mail are threatening its ability to cross-subsidise unprofitable activities, MPs will today warn, in a report highlighting concerns about the government’s plans for the loss-making Post Office network.

The trade and industry committee is likely to examine the impact of existing price controls on the state-owned postal operator, its chairman told the Financial Times. “There may well be a case for looking again at the regulatory regime,” Peter Luff said. His committee’s report cites a number of state contracts Royal Mail has lost to rivals since the postal market was opened fully to competition last year. Royal Mail’s loss of profits is “inevitably threatening the cross-subsidisation of its unprofitable elements, including the post office network”, the report states.

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Nearly all post on time

Nearly 95% of first class mail posted in Notts reaches its UK destination the next working day, according to new figures.

The Royal Mail figures put performance in the NG postcode area second only to Derby in the Midlands.

Postwatch, the watchdog for postal services, welcomed Royal Mail’s latest quality of service results.

Across the Midlands in the first nine months of this financial year, Royal Mail achieved the minimum target of delivering 91.5% of first class post the next working day in all of the region’s 16 postcode areas.

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Royal Mail chooses DQM to manage Home Movers mailing service

Royal Mail has chosen DQM Group to manage and deliver its Home Movers mailing service.

The service allows brands to send promotions within a Royal Mail branded re-direction envelope to people who tell Royal Mail they are moving home. According to Royal Mail around 100,000 people move home each month.

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