Market intelligence at La Poste - HOME

Market intelligence
at La Poste
November 29th
Topics
The Post’s challenges
The Post Strategic Axes
Market intelligence at La Poste – some examples
Conclusion
13 December 2005
2
Topics
The Post’s challenges
The Post Strategic Axes
Market intelligence at La Poste – some examples
Conclusion
13 December 2005
3
Challenge 1 - E-substitution
Domestic Mail Revenue vs. GDP (at market prices)
(Domestic Mail Revenue without Invoice to the State)
140
130
E-substitution
120
110
100
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
GDP (inflation incl. – Base 100 = 1995)
Post Domestic Mail revenue (Base 100 = 1995)
Source:
Annual Financial Report of The Post SA 1993 – 2003, BNB, Federal Office of Plan, Ministry of
Economic Affairs
13 December 2005
4
Challenge 2 – Market Deregulation
Market liberalization will lead to more competitors
2003 : Already 30% of the revenue is open to competition
2006 : 40% of the revenue will be open to competition
2009 : Next steps toward full market liberalization?
(European rules)
Mail
2003
Areas
under monopoly
2004
2005
2006
2007
2008
2009
<100gr………………….<50gr………………………?
13 December 2005
5
Challenge 3 - Competition is growing
Launched a new subsidiary in Belgium in June 2004
Aims at 2-3% of international mail market
Attacks our most important customers with an
important Direct Mail campaign
Launched a price war on unaddressed mail to defend
its 75% market share
Launched distribution of addressed mail > 100g
Launched a new offer (D+2, T&T, 2 presentations) in
the parcel market
Offers an alternative distribution network for parcels
through gas stations and large retailers
Conquered estimated 7% of the standard parcel
market
13 December 2005
6
Challenge 4 - Increasing Costs
Operational Costs at Domestic Mail
Average
Annual
Cost
per
FTE
(€ ‘000)
Average Annual
Cost
per FTE
unit
(! '000)
40
11%
Growth:
4,9%
2,7%
3,3%
2002A
2003A
2004E
39
38
37
Operating Costs
Personnel Costs
36
35
34
33
89%
Personnel Costs
weight as 89% of
the overall
operational costs of
Domestic Mail
2001A
Average personnel
cost per FTE has
increased at an
average rate of
3.6% a year
Without action, profitability of Domestic Mail Business Unit would be squeezed
between decreasing revenues and increasing personnel costs, leading
eventually to losses.
13 December 2005
7
Topics
The Post’s challenges
The Post’s Strategic Axes
Market intelligence at La Poste – some examples
Conclusion
13 December 2005
8
The Post’s strengths:
A trusted partner in a complex industry
40.000 people
1.352 post offices, generating
more than 100 millions customer
contacts a year
3,7 billion mail pieces per year
= 16.800.000 per day.
12.000 postal rounds serving 5
million postboxes per day
(private + business)
Over 2 billion euro turnover
Long-lasting relationship with
the top companies
13 December 2005
9
The Post’s Strategic axes
The Post strategy relies on
3 fundamental axes:
Increase perceived quality
Increase Revenue
Right price for our services
Reengineer existing loss-making services
Launch new products & services
13 December 2005
Beat quality objectives
for Prior and Non Prior
Manage waiting queue
more efficiently
Simplify service offering
Work more efficiently
Reengineer our processes
Develop information systems
and automation
10
First results are booked:
All company projects are done at the end of 2004 in time
Georoute, Poststation, Taxipost,….
FTE decrease….
Revenue is up by 2,8% in 2004
Profit is back (36 mio € EAT)
Absenteism is down
Quality is up: +3% d+1 priority letters
13 December 2005
11
Topics
The Post’s challenges
The Post’s Strategic Axes
Market intelligence at La Poste – some examples
Conclusion
13 December 2005
12
Overview of the market information
management process
Understanding
the market
Identifying
threats and
opportunities
13 December 2005
Quantifying
opportunities
Quantifying
Prioritizing
Define focus
Assessing
our actions
Feedback on our
actions
13
Stage 1: Understanding the market (1/2)
Understanding
the market
Quantifying
opportunities
Assessing
our actions
What are the consumer insights / general trends ?
What is our reason for being ?
13 December 2005
14
13 December 2005
15
Consumer insight panel discussion:
methodology
2 discussion groups (N=16)
N=40 in depth interviews + diaries
N=40 semi-qualitative interviews (graduates 20-35
years)
13 December 2005
16
“I’ve got mail, so I exist”
My postbox shows that I exist
Without any physical adress (letterbox) one cannot prove
that one really exists
The box is something we share within the family
whereas telephone, email, sms are individualized…
“Wat in mijn brievenbus komt, is van mij”
This mail comes physically in my private home. At that
point everything is under my control …
Physical mail “hits” in a
privileged environment
at a privileged moment
13 December 2005
17
Each household receives weekly about 25
pieces in his postbox
• Greeting & holiday cards
• Free local press
• Leaflets
• Free catalogues
• Invitations
• Letters
Private
mail
• Newspapers
• Magazines
• Communities
Subscriptions
Unaddressed
ad
“Official”
documents
•
•
•
•
Mail Order
Catalogues
Loyalty magazines
Offerings
13 December 2005
Addressed
ad
•
•
•
•
•
•
•
Bills & statements
Taxes, Government
Utilities
Health care
Banking, insurance
Credit card companies
Clubs, organisations
18
Stage 1: Understanding the market (2/2)
Understanding
the market
Quantifying
opportunities
Assessing
our actions
How satisfied are your customers ?
What could help increasing this satisfaction rate ?
13 December 2005
19
Why monitoring customer satisfaction ?
Knowing our customer is crucial to
Understand the key leverage to influence overall satisfaction
Maintain & develop customer loyalty
Develop a strong brand positioning
Fulfilling the management contract with the
government
Changing the priorities in the company
13 December 2005
20
Sampling: first wave (2003)
N= 1000 Residentials
Representative sample for
the population in Belgium
15 years +
Ad random sample, face-toface in home interviews
N= 1315 Business customers
Stratified sample
Face-to-face interviews with
decision makers or people with
operational responsibility for
postal activities
Key accounts
55
Large companies
160
Small & medium
companies
747
Soho’s
353
(+ Ad random,
representative)
E.g. sampling 2003
13 December 2005
21
Sampling: next waves
2004 Sampling:
May-june
July-aug.
Sept.
Oct.
Nov-dec.
TOTAL 2004
N consumer
N business
(representative)
(stratified)
250
150
200
200
200
1000
250
150
200
200
200
1000
Same quota in every wave
From 2005 on: MAT monthly
13 December 2005
22
Method
Satisfaction scores on +/- 100 indicators:
7
6
5
very satisfied
= enthousiast
satisfied
rather satisfied
4
nor satisfied, nor dissatisfied
3
2
1
rather dissatisfied
dissatisfied
very dissatisfied
= satisfied
= dissatisfied
Satisfaction Index = Weighted average of
indicators
Weight = impact on overall satisfaction
13 December 2005
23
Overall customer satisfaction
End 2004, % enthousiast customers is significantly
higher than 2003
70
60
50
% Enthousiast (6-7)
54
52
59
55
63
62
Residential
Business
Avg
2004
57%
55%
50
48
40
30
20
% Unsatisfied (1-3)
10
10
9
11
9
13 Business
8
7
Residential
9%
8%
0
avr.-may
2003
may-june
2004
13 December 2005
jul.-oct. 2004
nov.-dec
2004
24
Key priorities: the model
Performance consumers ( %satisfaction 6+7)
100%
90%
80%
70%
60%
Mean
Satisfaction: 54%
50%
40%
30%
Tariffs
Postman
20%
10%
0%
0,00
Daily correspondence
Post office: products & services
Post office: Information
Post office: Staff & delivery
Post office: accessibility & arrangement
0,05
0,10
0,15
0,20
0,25
0,30
0,35
0,40
0,45
0,50
0,55
0,60
13 December
2005 importance for satisfaction private customers
Indirect
0,65
0,70
25
Key priorities: the result
6 key drivers of Customer Satisfaction identified in the
previous multivariate analysis …
Speed & efficiency of Mail and Retail operations,
Clarity and simplicity of information on our products, services and
tariffs,
Customer-friendly procedures,
Integrity of tangible goods,
Accessibility of Mail products,
External communication.
Not important is what already OK is, eg:
Distance to red post boxes (collect)
Distance to the post office
Back sending (retours)
Friendlyness of postman
….
13 December 2005
26
Stage 2: Quantifying opportunities and
threats (1/2)
Understanding
the market
Quantifying
opportunities
Assessing
our actions
In which market segments should we push
Direct Mail volume ?
13 December 2005
27
In Direct Mail, there is no “Belgian deficit” in
comparison with other countries
Marketing expenditures: Direct Mail share
in Belgium is in the upper group (34%)
Volume per capita:
Belgium also scoring well
Marketing expenditure Belgium
(mio euro, 2000)
Per capita direct mail volume (2001)
120
# items addressed mails
Euro
UK
F
D
NL
Fin
NL
B
90
A
G
F
B
0%
20%
Direct Mail
40%
60%
Interactive advertising
80%
100%
Advertising
60
0
400
800
# items unaddressed mails
However a slight ‘Natural growth’ is expected when considering
(1): the reference of US market (320 per capita)
(2): the global trend towards ‘Direct Mass Marketing’
13 December 2005
28
However there is discrepancy between low
and high users and a lack of prospect mail
Low – Medium users could
increase their usage
Lack of prospect
data sales (and
prospect mail)
Prospect Data sold / yr.
Prospect mail / yr.
V alue share
Top 20 % Mailers
Next 80 % mailers
€
3.95
70
60
50
40
30
20
10
0
34
mailings
Belgium
UK
Belgium
€
6.77
75
mailings
UK
13 December 2005
29
And large discrepancy within some sectors
# 1. Identifying DM potential across the players of the market
Potential DM
4,00%
5.000.000
2,00%
0
0,00%
Turnover DM Post 2002
% Rev DM vs. Advertising
13 December 2005
Al
co
pa
(M
m
Fi
at
Be
he
r
La
nd
Ja
gu
a
BM
Da
i
Ni
s
Pe
ug
e
Advertising budget 2002
Ho
nd
a
10.000.000
an
oo
rk
en
s)
6,00%
Ro
ve
r
15.000.000
r
8,00%
W
20.000.000
Fo
rd
10,00%
Re
na
m
ul
le
t
rC
hr
ys
le
r
To
yo
ta
D'
Ie
te
re
n
Ci
tro
ën
25.000.000
sa
n
12,00%
ot
30.000.000
O
pe
l
EURO MARKETING BUDGET
HIGH
0-4%
Share DM turnover Post vs. advertising
MEDIUM
4% - 8%
LOW: DM
> 8%
Automotive Groups
Check DM figures
30
Leading to some significant volume growth
potential
13 December 2005
31
Leading to some significant volume growth
potential: example retail
D
A
B
C
D
E
D
B,C
D
A
13 December 2005
32
Stage 2: Quantifying opportunities and
threats (2/2)
Understanding
the market
Quantifying
opportunities
Assess
our actions
Evaluate best perceived and accepted sales channel ?
13 December 2005
33
Intention to use alternative distribution
formats - Bank
Q16
Base: Total sample 2004
"Image that beside the Post Office you could also buy products and services of De
Post in other locations. Could you then indicated for each of the locations how
likely it is you would buy products and services of De Post there."
100
80
10
9
11
10
9
20
22
20
18
20
11
21
9
15
18
21
60
25
29
23
40
24
30
21
22
21
25
22
25
24
21
22
21
19
20
23
20
22
2004
(n=1090)
<35 (n=354)
35-54
(n=398)
28
25
20
26
22
Satisfied
(n=619)
Dissatisfied
(n=87)
0
Certainly not
Probably not
13 December 2005
55-75
(n=338)
Dutch
(n=619)
Maybe
French
(n=471)
Probably
Certainly
34
Intention to use alternative distribution
formats - Supermarket
Q16
Base: Total sample 2004
"Image that beside the Post Office you could also buy products and services of De
Post in other locations. Could you then indicated for each of the locations how
likely it is you would buy products and services of De Post there."
100
25
28
27
20
20
22
30
38
80
22
60
27
31
27
31
23
29
22
21
40
21
19
19
20
15
13
18
20
15
14
14
14
17
Dutch
(n=619)
French
(n=471)
Satisfied
(n=619)
11
17
14
21
14
19
9
12
<35 (n=354)
35-54
(n=398)
16
17
12
0
2004
(n=1090)
Certainly not
Probably not
13 December 2005
55-75
(n=338)
Maybe
Probably
Dissatisfied
(n=87)
Certainly
35
Intention to use alternative distribution
formats - Press shop
Q16
Base: Total sample 2004
"Image that beside the Post Office you could also buy products and services of De
Post in other locations. Could you then indicate for each of the locations how likely
it is you would buy products and services of De Post there."
100
80
36
42
35
31
35
38
32
41
60
29
31
32
22
18
19
4
3
2004
(n=1090)
<35 (n=354)
Certainly not
13
9
9
6
9
8
6
4
8
9
3
35-54
(n=398)
55-75
(n=338)
Dutch
(n=619)
French
(n=471)
Satisfied
(n=619)
Dissatisfied
(n=87)
10
6
21
18
20
17
8
0
33
33
40
20
30
30
32
Probably not
13 December 2005
Maybe
9
Probably
Certainly
36
Stage 3: Assessing and monitoring our
actions
Understanding
the market
Quantify
opportunities
Assess
our actions
Assess global effect of your communication (f. i. Mass
communication – unaddressed magazine) ?
13 December 2005
37
Enquête sur l’effet du Poste magazine 2
1.
Objectifs
2.
Méthodologie
3.
Résultats
4.
Conclusions
13 December 2005
38
Objectifs
Background:
Distribution toutes-boîtes du POSTE magazine – POST magazine 2’ avec :
° Série de services et produits de La Poste
° Dossier spécial vente par correspondance
Problématique de La Poste – De Post:
Efficacité du magazine (médium) et les communications individuelles = ?
13 December 2005
39
Enquête sur l’effet du Poste magazine 2
1.
Objectifs
2.
Méthodologie
3.
Résultats
4.
Conclusions
13 December 2005
40
Méthodologie
1.003 interviews CATI - conditions :
•
Âge : 18 ans ou plus;
•
Le répondant doit normalement vider la boîte à lettre et examiner le
courrier;
•
Il ne peut pas y avoir d’autocollant ‘Pas de publicité SVP – Geen
reclame AUB’ apposé sur la boîte à lettres.
Méthode: échantillon sur base de quotas (N/F = 50/50%); répartition géographique
aléatoire et proportionnelle i.f.d. répartition des ménages dans les villes et
communes.
Base de données: Pages blanches Belgacom-Promedia
Distribution de la brochure : (à partir de) semaine du 13 septembre
Field research: vendredi 17 – mardi 28 septembre
13 December 2005
41
Échantillon, e.f.d. age et langue
Magazine 2
Magazine 1
100%
27,3
28,5
25,8
80%
60+
30,9
51-60
60%
19,3
19,6
20,8
14,9
41-50
40%
23
22
21
22
31-40
20%
22
18
20
16
8
12
9
10
Néerlandophone
Francophone
Néerlandophone
Francophone
18-30
0%
(n=502)
13 December 2005
(n=501)
(n=530)
(n=544)
42
Echantillon, e.f.d. taille du ménage et langue
Magazine 2
Magazine 1
100%
11,6
11,6
10,5
13,5
5 personnes ou plus
80%
20,5
17,8
18,6
18
4 personnes
60%
18
18
19
3 personnes
40%
37
37
33
16
15
17
Néerlandophone
Francophone
Néerlandophone
Francophone
(n=502)
(n=501)
(n=530)
(n=544)
38
2 personnes
20%
12
isolé(e)
0%
13 December 2005
43
ECHANTILLON, e.f.d. fréquentation du bureau de poste
Magazine 2
Magazine 1
100%
17,4
18
28,5
80%
34,4
moins d'une fois tous
les 3-4 mois
19
60%
au mois une fois tous
les 3-4 mois
24
22
41
40%
41
au mois une fois le
mois
34
28
20%
23
10
22
au moins une fois la
semaine
14
0%
éerlandophone
Francophone
Néerlandophone
(n=502)
(n=501)
(n=530)
13 December 2005
Francophone
(n=544)
44
Résumé - 1
1.
1/3 de tous les répondants se souviennent du magazine.
2.
50% d’entre eux ont lu ou consulté le magazine.
3.
1/3 de ceux qui se souviennent du magazine l’ont mis de côté.
13 December 2005
45
Résumé - 2
4.
8/10 des lecteurs trouvent que c’est une bonne initiative.
5.
1/4 des lecteurs trouvent que ce magazine offrent des avantages
seulement des produits postaux.
6.
1/3 trouvent que ce magazine leur ont appris quelque chose
seulement sur les produits postaux
13 December 2005
46
Résumé - 3
Le Poste magazine 2 obtient un score moins bon que le Poste
magazine 1
1.
Souvenir plus bas, moins de lecteurs et de conservation.
2.
Pour beaucoup de répondants, il n’est pas clair qu’une
bonne partie de ce magazine traite de vente par
correspondance; ainsi, il est perçu par un bon nombre
d’entre eux comme réclame ou une feuille de pubs.
Conclusion : le Poste magazine est un bon véhicule de communication
des services et produits de La Poste et il a le potentiel de servir de
véhicule aux clients externes de La Poste, à condition que :
1. il soit clair qu’il s’agisse d’un magazine de La Poste;
2. ce magazine communique le thème et les clients comme
un service de La Poste et qu’il essaie ce faisant d’éviter le
plus possible qu’il s’agisse d’une tantième feuille de
pubs dit magazine.
13 December 2005
47
Topics
The Post’s challenges
The Post’s Strategic Axes
Market intelligence at La Poste – some examples
Conclusion
13 December 2005
48
Conclusions:
Marketing is about making choices !
Factual information is crucial to assess
options
Methodology is important to insure
objectivity and representativity
Garbage in / garbage out !
13 December 2005
49
Do not miss the train !
“The computer world
market potential can be
assessed to max. 5.000
items”
IBM management in the 60’ies
13 December 2005
50
But do not be un-realistic !
“In 2005, Amazon.com
will be the largest book
retailer in the world ”
Financial press in the late 90’ies
13 December 2005
51