TECHNOLOGY 103                                                                                                            ...
104 TECHNOLOGY   InPost’s easyPack   24/7 – automated   parcel terminals   with a multitude of   benefits   “The solution ...
TECHNOLOGY 105more is spent online after recommendations.It is therefore vital for companies and         “All activities s...
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Rafal Brzoska: Mail change


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What are the benefits to posts of becoming active in e-commerce, social commerce and mobile commerce? and hoW can they do it?

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Rafal Brzoska: Mail change

  1. 1. TECHNOLOGY 103 Rafał Brzoska, InPostMail changeWhat are the benefits to posts of becoming active in e-commerce,social commerce and mobile commerce? and hoW can they do it? In 2010 107 trillion emails were sentcompared with 438.5 billion physical mailitems.1 Mail is no longer the main means ofcorrespondence, as it was years ago. Withnew technologies being developed peopleare now more likely to use their computersand the internet, as well as mobile devicesto spread the news and keep in social andbusiness contact . What is the future for thepostal industry and which areas should becarefully investigated by posts?Beginnings of InPost How is the businessenvironment changing and how can postsbenefit from new opportunities thattechnologies are bringing? InPost, whichhas just recently won three World MailAwards for Growth, Innovation andE‑commerce, was founded by the author 11years ago while a student of economics.Beginning with distribution of unaddressedmail, the company entered the addressedmail businesses five years ago. Althoughdistribution of catalogues and letters is stilla cash cow for the organisation (10 percentmarket share of addressed mail and 30percent of unaddressed mail in Poland) a the machines (both hardware and software) demanding and they are no longer willingfew years ago we decided to enter the but also about working with our partners to queue at post offices or arrange ae‑commerce and social commerce markets (e‑retailers and other companies generating meeting with a courier to collect their– using the popularity of Facebook – and parcels) to win customers. We keep it parcels. It takes only 17 seconds to collect amobile commerce – with our own MVNO simple, considering the needs of the parcel from easyPack. Once the parcel isproviding mobile phone services. customer at all times. All our products and delivered to the box, the customer receives E‑commerce is currently worth US$686.6 services are aimed at simplicity of use and an email and SMS notification. Fifty‑onebillion worldwide. According to Invesp the interaction with the company. percent of our customers collect the parcelmarket will grow to US$1,400 billion by The same thinking governed the within six hours of notification.2015. Having made the decision to enter development of the easyPack 24/7 solution, The system also has a great number ofthat market, InPost decided to create its which we wanted to be easy and benefits for operators, whether a postalown automated parcel terminals. easyPack convenient to use for our customers. Our operator or express carrier. They include:24/7 is currently operating not only in outdoor solution allows customers to • Lower last mile costs by up to 80 percent;Poland but also in Estonia and will shortly collect their parcels 24 hours a day, seven • Elimination of the problem of failedbe available for customers in the Czech days a week. It is not just a slogan as 37.45 deliveries to 0.036 percent;Republic, Slovakia, Spain and Russia. percent of the parcels are being collected • Increased range and market penetration. Having developed the solution from between 18:00 and 08:00. With greater How many couriers do you need toscratch, we know that it is not only about speed of life people are becoming more deliver 500 parcels a day? One courier can 2012
  2. 2. 104 TECHNOLOGY InPost’s easyPack 24/7 – automated parcel terminals with a multitude of benefits “The solution also confers flexibility of special gifts worth US$8.70 and US$15.70 for customers who spent more than delivery as it can be fed with parcels US$17.50 and US$35 respectively. The campaign was communicated using any time of day and night” marketing banners, e-mailings and posts on Facebook, and resulted in 56 percent growth in the use of easyPack delivery. In normally deliver 50 to 70 parcels a day, so organisations slash the cost and time of addition the easyPack delivery channel was it would take between seven and 10 logistics, simultaneously increasing chosen for 18 percent of all orders during couriers. With 80 boxes in each machine customer satisfaction. the campaign and after the action by 23 and just seven stops a day, InPost can • Couriers and postal operators can benefit percent of all customers of This deliver over 500 parcels with just one from the infrastructure and make savings illustrates how important it is to work person. That allows us to reduce the cost of on part of their deliveries, eliminate failed closely with e-retailers to meet customers’ the last mile by 80 percent. delivery attempts or extend collection time needs. One of the biggest and most expensive to 24/7. problems for courier companies is failed The world’s third largest country If all deliveries, which usually range between 12 The machine is not enough With over two Facebook users were a country it would be and 20 percent. The problem does not years of experience operating the business the third largest in the world. There are apply with self-service automated parcel in Poland and having already achieved the currently over 750 million users and it is machines, where the parcel waits for the operational break-even point, it is still growing. Interestingly 30 percent of customer and not the other way round. The important to say that possessing only the users access Facebook through their mobile solution also confers flexibility of delivery machines will not be enough. What we devices. The majority of users are between as it can be fed with parcels any time of day think is important and makes the business 18 and 34 years old and 50 percent of them and night. successful is tight cooperation with our log in every day and use the platform for at The solution is designed for the partners. InPost is working hard with its least 20 minutes a day. On average each following segments: e-commerce partners to boost sales for user is connected to 130 friends and • E-commerce players (e-retailers, internet them and to generate traffic to easyPack acquaintances.2 auction sites) can offer a more cost-effective 24/7 machines. Those numbers cannot be overlooked by and convenient delivery option on their For example in June 2011 InPost, with marketers. Wired magazine has reported goods. the online store, which sells that 90 percent of all purchases are subject • Mail-order and multilevel marketing cosmetics and beauty accessories for to social influence and a similar result was companies benefit from convenience and women, undertook a campaign aimed at found by The Nielsen Company, which has lower costs of distribution for their creating awareness of the easyPack 24/7 said that 90 percent of consumers trust customer and consultants. delivery channel and increasing sales recommendations from people they know. • Electronic equipment service through that channel. prepared states that 67 percent 2012
  3. 3. TECHNOLOGY 105more is spent online after recommendations.It is therefore vital for companies and “All activities should be totally customerbrands to be present in social media. It isnow ‘the place’ where people are spending driven and the customer should be at thehuge amounts of their free time. Mark Zuckerberg, CEO of Facebook, forefront of everything the business does”once said: “If I had to guess, socialcommerce is next to blow up.” Booz & displayed on the device’s screen. ThisCompany predicts that US$30 billion will enables successful geo-targeted campaigns,be spent on the social commerce market in so InPost can offer a good target group for2015. In August 2010 Groupon teamed up companies, be they Procter & Gamble andwith GAP and sold 440,000 coupons worth Unilever, supermarket chains or brandsmore than US$11 million just in one day. such as McDonald’s or Levi’s.In March 2010 Procter & Gamble sold The first results are based on the ‘free1,000 disposable diapers via its Facebook minutes for shopping’ model andstore in just one hour. ‘view2surf’ advertising: With the growing importance of social • A 15 percent bigger shopping basketmedia and group sales, InPost decided to when using ‘free minutes for shopping’;enter that business in Autumn 2010. We • A 10 percent increase in demand forhave developed our own Facebook selected products in targeted marketingapplication called InFlavo. It enables promotions;companies and individuals to sell their • Over 100 percent higher rate of viewingproducts via the popular social network mobile ads using view2surf technology;platform. The solution is already integrated • High satisfaction rate for full-screenwith payment and delivery options. One of mobile advertisements.InPost’s goals is to drive parcel traffic toeasyPack 24/7 machines from purchases Summary The postal market is currentlycompleted via Facebook. undergoing a lot of changes. Trust, which InPost has also launched InFlavo has been a major ally, is helpful but will notCulture, the purpose of which is to reap the be sufficient to enable a post to survive incommercial potential of the fan pages of the current business climate. The world ismusicians, celebrities, writers, etc. moving fast and therefore fast decision-Programme participants are able to sell making processes and quick times tomusic in electronic form, tickets to cultural market are vital to success. All activitiesevents or concerts, activity related gadgets, should be totally customer driven and theclothes, publications, paintings, etc. The InPost’s InFlavo Facebook application customer should be at the forefront ofpotential is really huge. everything the business does. US$12 billion in 2014 whereas mobile In every business it is important toIn mobile we believe It is an interesting commerce is set to reach US$119 billion.4 understand the profile of your targetparadox that historically posts were often Mobiles can be used in m-commerce, m- customers. InPost recommends the fulllinked with telecommunications under a ticketing and m-coupons. potential from exploiting the opportunitiessingle company. Starting around 20 years What is InPost’s response to that? One is now available through new technologiesago it became common for the two to be to offer a mobile version of InFlavo. Last and social media. It is not an easy field andsplit. However there are now some postal year the company purchased an MVNO it is changing all the time, but with aorganisations that are looking into the from Carrefour and now is offering two proper marketing strategy and tailoredtelecommunications businesses again. services: Carrefour MOVA, targeted to approach the company can achieve success.Examples are Poste Italiane and CTT customers of that retail chain and FreeM, Out-of-the-box thinking and looking atCorreios with their MVNOs. InPost entered targeted at the youth market. The idea is things from the consumer’s perspectivethat market in 2010 with its InMobile very simple. Carrefour MOVA is based on a always helps. ■subsidiary. loyalty programme where customers Why is there such interest in the mobile shopping at the supermarket chain 1. Business Insider and UPUcommunications market for posts? There Carrefour receive free minutes according to 2. Facebook, already over 5.28 billion mobile cellular how much they spend shopping. FreeM is info.php?statisticssubscriptions globally. Interestingly only targeted at the younger generation, 3. International Telecommunication Union,1.19 billion also have fixed telephone enabling them to browse internet pages for October 2010lines.3 Mobile retail is expected to reach free. Every 30 minutes an advert is 4. 2012