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Mark Harrison - A New Strategic Role for Postal Operators: Digital Services and Cross Border Marketing

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  • 1. A new strategic role for postaloperators: digital services andcross border marketingMark HarrisonHead of MarketsEuropean Marketing Dynamics Summit25 November 2011© IPC, 2011 EMDS, Brussels, 25 November 2011 1
  • 2. IPC• 24 postal operators• 80% of the world’s mail volume• €290bn annual revenue• 2.2 million employees• Work with 130 postal administrationswww.ipc.be© IPC, 2011 EMDS, Brussels, 25 November 2011 2
  • 3. Agenda• Mark Harrison, Head of Markets, IPC – Overview of the communication market, the new role of postal operators within the current marketing dynamics and their strategic focus• Antoine Brégeon, Director Marketing Solutions – New innovative strategies from Le Groupe La Poste – Affideo© IPC, 2011 EMDS, Brussels, 25 November 2011 3
  • 4. Revenue Composition 2010Magnitude by Line of Business© IPC, 2011 EMDS, Brussels, 25 November 2011 4
  • 5. Postal Mail Volume Evolution byProduct for 2010Based on 2010 published volume data from a selection of 35 postal operators in developed markets© IPC, 2011 EMDS, Brussels, 25 November 2011 5
  • 6. eCommerce ForecastsDouble Digit Growth ($B)© IPC, 2011 EMDS, Brussels, 25 November 2011 6
  • 7. Global Trends Affecting PostalIndustry Source: eBay, IPC Stanford Global Supply Chain Management Forum, February 2011© IPC, 2011 EMDS, Brussels, 25 November 2011 7
  • 8. Strategic Focus • Addressed AdMail Direct Marketing • Unaddressed AdMail • Domestic Parcels E-Commerce • Cross-Border Parcels • E-Box solutions Digital Business • Hybrid mail solutions • Global Postal Sector Sustainability Environment Report • EMMS© IPC, 2011 EMDS, Brussels, 25 November 2011 8
  • 9. Direct Marketing© IPC, 2011 EMDS, Brussels, 25 November 2011 9
  • 10. The Value Chain for Direct MailExternal Cost Breakdown• Overall, distribution accounts for highest share of external costs• In the highly competitive market structure of NL, advertisers perceive lower distribution costs for direct mail External costs for Direct Mail (in bn €) 43.91 3.56 4.20 0.59 1.44 0.63 8.00Data: All values in %Base: All companies with a turnover of at least € 0.25m /year and using Direct Mail advertising© IPC, 2011 EMDS, Brussels, 25 November 2011 10
  • 11. Mail vs. Online Advertising ExpenditureShare of addressed direct mail expenditure is highest in the US. Online expenditure ona par with direct mail in mature internet markets such as UK and SE Internet penetration per population * 72% 68% 58% 77% 53% 88% 64% US UK FR SE BE NL DE * Source: www.internetworldstats.com (updated June 2008)Data: All values in %Base: All companies with a turnover of at least €0.25 m /year and which are doing direct marketing© IPC, 2011 EMDS, Brussels, 25 November 2011 11
  • 12. Future of Direct Marketing “Direct mail will become a premium medium with potentially smaller volumes in some markets” Offline direct marketing “More and more of consumer Classic retail and travel purchases will be made online.” advertising Online direct marketing “Internet will overtake TV “The dominance of traditional as a leading format” agencies will wane. Specialized agencies within direct marketing, event “Search marketing is the marketing, web and PR are killer application for growing.” acquisition marketing” All quotes are from Anders Kasberg, CEO of SWEDMA, used with his kind permission© IPC, 2011 EMDS, Brussels, 25 November 2011 12
  • 13. QR codes and Mail© IPC, 2011 EMDS, Brussels, 25 November 2011 13
  • 14. Augmented Reality and Mail© IPC, 2011 EMDS, Brussels, 25 November 2011 14
  • 15. E-Commerce© IPC, 2011 EMDS, Brussels, 25 November 2011 15
  • 16. Current Cross-Border OpportunityIncidences in Europe Total Population UK DE FR DK NL BE Broadband internet Access at home* 62% 55% 57% 74% 74% 60% Purchase goods for physical delivery in 58% 49% 49% 61% 65% 38% past 12 months Online Population UK DE FR DK NL BE Base: Individuals with internet access at home (n=1080) (n=1101) (n=948) (n=1023) (n=1247) (n=1183) No online purchases 5% 10% 12% 13% 10% 24% Purchase Online in past 12 months 95% 90% 88% 87% 90% 76% Purchase goods for physical delivery in past 12 months 93% 89% 86% 83% 88% 64% Cross-Border Purchases 36% 29% 33% 51% 27% 40% No Cross-Border Purchases 57% 60% 53% 32% 61% 24% * Source: Households with broadband access – 2008 (OECD)© IPC, 2011 EMDS, Brussels, 25 November 2011 16
  • 17. Online Shopping BehaviourExperience & Frequency 5 years The more the experience, the more frequently consumers shops online. DEExperience in Years UK 4 NL years DK FR BE 3 years Light Medium Heavy Frequency of PurchaseBase: Individuals with internet access at home who purchased goods for physical delivery in past 12 monthsQ1.1 & Q1.2© IPC, 2011 EMDS, Brussels, 25 November 2011 17
  • 18. Online Shopping BehaviourCross-border 5 years Cross-border shoppers are even more experienced and buy online more frequently. DE-cb UK-cb DEExperience in Years NL-cb UK FR-cb 4 DK-cb years NL DK FR BE-cb BE 3 years Light Medium Heavy Frequency of PurchaseBase: Individuals with internet access at home who purchased goods for physical delivery in past 12 monthsQ1.1 & Q1.2 * cb – Cross-border© IPC, 2011 EMDS, Brussels, 25 November 2011 18
  • 19. Online PurchasesTop 10 goods for physical delivery UK DE FR DK NL BE (n=635) (n=602) (n=608) (n=606) (n=625) (n=611) Average # 7.1 7.8 5.9 6.0 5.4 4.5 Books, CDs & DVDs Clothes & shoes Computer software / games Electronic equip. & devices Toys & hobbies Small domestic appliances Beauty Computer hardware Office supplies Sports goodsBase: Individuals with internet access at home who purchased goods for physical delivery in past 12 monthsQ2.1 & Q2.1A, Q2.2© IPC, 2011 EMDS, Brussels, 25 November 2011 19
  • 20. Return Services Incidence and methods of return UK DE FR DK NL BE % Ever returned goods 61% 76% 52% 51% 61% 44% Average number of returns 3.2 6.6 2.9 4.0 4.8 4.0 (n=389) (n=457) (n=319) (n=307) (n=381) (n=269)Take to a post office/collection point Organise a specific pick up Take it back to the store Return immediately at moment of delivery Base: Individuals with internet access at home who purchased goods for physical delivery in past 12 monts and EVER RETURNED goods © IPC, 2011 EMDS, Brussels, 25 November 2011 20
  • 21. Inspiration From Outside theIndustry • bpost • Deutsche Post DHL • Le Groupe La Poste • Royal Mail • PostNL • Easy Returns Solution (ERS) • Easy Collect Solution (ECS)© IPC, 2011 EMDS, Brussels, 25 November 2011 21
  • 22. Delivery Company Case StudyYamato© IPC, 2011 EMDS, Brussels, 25 November 2011 22
  • 23. YamatoDelivery Network and Access to Customers© IPC, 2011 EMDS, Brussels, 25 November 2011 23
  • 24. YamatoParcel Home Delivery Volume in Japan© IPC, 2011 EMDS, Brussels, 25 November 2011 24
  • 25. E-Merchant Examples© IPC, 2011 EMDS, Brussels, 25 November 2011 25
  • 26. Zappos.com© IPC, 2011 EMDS, Brussels, 25 November 2011 26
  • 27. Amazon© IPC, 2011 EMDS, Brussels, 25 November 2011 27
  • 28. Amazon© IPC, 2011 EMDS, Brussels, 25 November 2011 28
  • 29. eCommerceCustomer Needs• Simplicity and ease of use• Visibility• Delivery expectation management and standardisation• Returns• Shipping costs aligned with value of merchandise© IPC, 2011 EMDS, Brussels, 25 November 2011 29
  • 30. Digital Business© IPC, 2011 EMDS, Brussels, 25 November 2011 30
  • 31. Secure Digital to DigitalCommunication Closed Systems Open Systems Digital Street Address Alternatives Face-to-face authentication Other authenticationInformation correct as of April 2011 © IPC, 2011 EMDS, Brussels, 25 November 2011 31
  • 32. The Impact of Social Media onDirect Marketing and E-Commerce© IPC, 2011 EMDS, Brussels, 25 November 2011 32
  • 33. Social Media© IPC, 2011 EMDS, Brussels, 25 November 2011 33
  • 34. Twitter • Twitter was launched in 2006 • Twitter rapidly gained worldwide popularity, with 200 million users as of 2011, generating over 200 million tweets and handling over 1.6 billion search queries per day. • Open, informed and engaged – a changing communication landscape© IPC, 2011 EMDS, Brussels, 25 November 2011 34
  • 35. Biz Stone, Co Founder, Twitter© IPC, 2011 EMDS, Brussels, 25 November 2011 35
  • 36. Facebook Empowering Consumers • 800,000,000 Facebook users • 48% Americans have a Facebook account • 50% of users are active logging daily • Half of users access Facebook through their mobiles phones • On average each user has 130 friends • 30 billion pieces of content are shared each month© IPC, 2011 EMDS, Brussels, 25 November 2011 36
  • 37. Facebook 100 million likes happen every day Customers Customer Business Friends How do you inspire the consumer to talk about your business?© IPC, 2011 EMDS, Brussels, 25 November 2011 37
  • 38. Facebook© IPC, 2011 EMDS, Brussels, 25 November 2011 38
  • 39. Vail’s EpicMix mobile app© IPC, 2011 EMDS, Brussels, 25 November 2011 39
  • 40. Vail’s EpicMix mobile app© IPC, 2011 EMDS, Brussels, 25 November 2011 40
  • 41. Orabrush© IPC, 2011 EMDS, Brussels, 25 November 2011 41
  • 42. Orabrush http://www.youtube.com/watch?v=N1kVNi- 3JhA&feature=BFa&list=SPB73276F91DD26C78&lf=list_related© IPC, 2011 EMDS, Brussels, 25 November 2011 42
  • 43. Strategic Focus • Addressed AdMail Direct Marketing • Unaddressed AdMail • Domestic Parcels E-Commerce • Cross-Border Parcels • E-Box solutions Digital Business • Hybrid mail solutions • Global Postal Sector Sustainability Environment Report • EMMS© IPC, 2011 EMDS, Brussels, 25 November 2011 43
  • 44. Postal Mail Volume Evolution byProduct for 2010Based on 2010 published volume data from a selection of 35 postal operators in developed markets© IPC, 2011 EMDS, Brussels, 25 November 2011 44
  • 45. Global Trends Affecting PostalIndustry Source: eBay, IPC Stanford Global Supply Chain Management Forum, February 2011© IPC, 2011 EMDS, Brussels, 25 November 2011 45
  • 46. IPC Annual Conference 2012Shanghai Confirmed speakers Daniel Zhang CEO Taobao Mall© IPC, 2011 EMDS, Brussels, 25 November 2011 46
  • 47. Agenda• Mark Harrison, Head of Markets, IPC – Overview of the communication market, the new role of postal operators within the current marketing dynamics and their strategic focus• Antoine Brégeon, Director Marketing Solutions – New innovative strategies from Le Groupe La Poste – Affideo© IPC, 2011 EMDS, Brussels, 25 November 2011 47
  • 48. Thank Youmark.harrison@ipc.bewww.ipc.be© IPC, 2011 EMDS, Brussels, 25 November 2011 48