A new strategic role for postaloperators: digital services andcross border marketingMark HarrisonHead of MarketsEuropean M...
IPC•    24 postal operators•    80% of the world’s mail volume•    €290bn annual revenue•    2.2 million employees•    Wor...
Agenda• Mark Harrison, Head of Markets, IPC       – Overview of the communication market, the new         role of postal o...
Revenue Composition 2010Magnitude by Line of Business© IPC, 2011   EMDS, Brussels, 25 November 2011   4
Postal Mail Volume Evolution byProduct for 2010Based on 2010 published volume data from a selection of 35 postal operators...
eCommerce ForecastsDouble Digit Growth                        ($B)© IPC, 2011   EMDS, Brussels, 25 November 2011   6
Global Trends Affecting PostalIndustry      Source: eBay, IPC Stanford Global Supply Chain Management Forum, February 2011...
Strategic Focus                                     • Addressed AdMail    Direct Marketing                 • Unaddressed A...
Direct Marketing© IPC, 2011   EMDS, Brussels, 25 November 2011   9
The Value Chain for Direct MailExternal Cost Breakdown• Overall, distribution accounts for highest share of external costs...
Mail vs. Online Advertising ExpenditureShare of addressed direct mail expenditure is highest in the US. Online expenditure...
Future of Direct Marketing                                        “Direct mail will become a                              ...
QR codes and Mail© IPC, 2011   EMDS, Brussels, 25 November 2011   13
Augmented Reality and Mail© IPC, 2011   EMDS, Brussels, 25 November 2011   14
E-Commerce© IPC, 2011   EMDS, Brussels, 25 November 2011   15
Current Cross-Border OpportunityIncidences in Europe   Total Population                                        UK         ...
Online Shopping BehaviourExperience & Frequency                         5                      years                      ...
Online Shopping BehaviourCross-border                         5                      years                                ...
Online PurchasesTop 10 goods for physical delivery                                       UK                  DE           ...
Return Services      Incidence and methods of return                                               UK                DE   ...
Inspiration From Outside theIndustry                                                 • bpost                              ...
Delivery Company Case StudyYamato© IPC, 2011   EMDS, Brussels, 25 November 2011   22
YamatoDelivery Network and Access to Customers© IPC, 2011   EMDS, Brussels, 25 November 2011   23
YamatoParcel Home Delivery Volume in Japan© IPC, 2011   EMDS, Brussels, 25 November 2011   24
E-Merchant Examples© IPC, 2011   EMDS, Brussels, 25 November 2011   25
Zappos.com© IPC, 2011   EMDS, Brussels, 25 November 2011   26
Amazon© IPC, 2011   EMDS, Brussels, 25 November 2011   27
Amazon© IPC, 2011   EMDS, Brussels, 25 November 2011   28
eCommerceCustomer Needs• Simplicity and ease of use• Visibility• Delivery expectation management and  standardisation• Ret...
Digital Business© IPC, 2011   EMDS, Brussels, 25 November 2011   30
Secure Digital to DigitalCommunication      Closed Systems                            Open Systems              Digital St...
The Impact of Social Media onDirect Marketing and E-Commerce© IPC, 2011   EMDS, Brussels, 25 November 2011   32
Social Media© IPC, 2011   EMDS, Brussels, 25 November 2011   33
Twitter • Twitter was launched in 2006 • Twitter rapidly gained worldwide popularity, with   200 million users as of 2011,...
Biz Stone, Co Founder, Twitter© IPC, 2011   EMDS, Brussels, 25 November 2011   35
Facebook Empowering Consumers • 800,000,000 Facebook users • 48% Americans have a Facebook account • 50% of users are acti...
Facebook                 100 million likes happen every day              Customers                                        ...
Facebook© IPC, 2011   EMDS, Brussels, 25 November 2011   38
Vail’s EpicMix mobile app© IPC, 2011   EMDS, Brussels, 25 November 2011   39
Vail’s EpicMix mobile app© IPC, 2011   EMDS, Brussels, 25 November 2011   40
Orabrush© IPC, 2011   EMDS, Brussels, 25 November 2011   41
Orabrush              http://www.youtube.com/watch?v=N1kVNi-              3JhA&feature=BFa&list=SPB73276F91DD26C78&lf=list...
Strategic Focus                                     • Addressed AdMail    Direct Marketing                 • Unaddressed A...
Postal Mail Volume Evolution byProduct for 2010Based on 2010 published volume data from a selection of 35 postal operators...
Global Trends Affecting PostalIndustry      Source: eBay, IPC Stanford Global Supply Chain Management Forum, February 2011...
IPC Annual Conference 2012Shanghai              Confirmed speakers                     Daniel Zhang                     CE...
Agenda• Mark Harrison, Head of Markets, IPC       – Overview of the communication market, the new         role of postal o...
Thank Youmark.harrison@ipc.bewww.ipc.be© IPC, 2011   EMDS, Brussels, 25 November 2011   48
Upcoming SlideShare
Loading in …5
×

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

711 views

Published on

Published in: Business, News & Politics
  • Be the first to comment

  • Be the first to like this

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

  1. 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. 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. 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. 4. Revenue Composition 2010Magnitude by Line of Business© IPC, 2011 EMDS, Brussels, 25 November 2011 4
  5. 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. 6. eCommerce ForecastsDouble Digit Growth ($B)© IPC, 2011 EMDS, Brussels, 25 November 2011 6
  7. 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. 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. 9. Direct Marketing© IPC, 2011 EMDS, Brussels, 25 November 2011 9
  10. 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. 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. 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. 13. QR codes and Mail© IPC, 2011 EMDS, Brussels, 25 November 2011 13
  14. 14. Augmented Reality and Mail© IPC, 2011 EMDS, Brussels, 25 November 2011 14
  15. 15. E-Commerce© IPC, 2011 EMDS, Brussels, 25 November 2011 15
  16. 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. 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. 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. 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. 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. 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. 22. Delivery Company Case StudyYamato© IPC, 2011 EMDS, Brussels, 25 November 2011 22
  23. 23. YamatoDelivery Network and Access to Customers© IPC, 2011 EMDS, Brussels, 25 November 2011 23
  24. 24. YamatoParcel Home Delivery Volume in Japan© IPC, 2011 EMDS, Brussels, 25 November 2011 24
  25. 25. E-Merchant Examples© IPC, 2011 EMDS, Brussels, 25 November 2011 25
  26. 26. Zappos.com© IPC, 2011 EMDS, Brussels, 25 November 2011 26
  27. 27. Amazon© IPC, 2011 EMDS, Brussels, 25 November 2011 27
  28. 28. Amazon© IPC, 2011 EMDS, Brussels, 25 November 2011 28
  29. 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. 30. Digital Business© IPC, 2011 EMDS, Brussels, 25 November 2011 30
  31. 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. 32. The Impact of Social Media onDirect Marketing and E-Commerce© IPC, 2011 EMDS, Brussels, 25 November 2011 32
  33. 33. Social Media© IPC, 2011 EMDS, Brussels, 25 November 2011 33
  34. 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. 35. Biz Stone, Co Founder, Twitter© IPC, 2011 EMDS, Brussels, 25 November 2011 35
  36. 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. 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. 38. Facebook© IPC, 2011 EMDS, Brussels, 25 November 2011 38
  39. 39. Vail’s EpicMix mobile app© IPC, 2011 EMDS, Brussels, 25 November 2011 39
  40. 40. Vail’s EpicMix mobile app© IPC, 2011 EMDS, Brussels, 25 November 2011 40
  41. 41. Orabrush© IPC, 2011 EMDS, Brussels, 25 November 2011 41
  42. 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. 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. 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. 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. 46. IPC Annual Conference 2012Shanghai Confirmed speakers Daniel Zhang CEO Taobao Mall© IPC, 2011 EMDS, Brussels, 25 November 2011 46
  47. 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. 48. Thank Youmark.harrison@ipc.bewww.ipc.be© IPC, 2011 EMDS, Brussels, 25 November 2011 48

×