aiia : voice of the digital economy

‘How to get online and manage a new channel to market’

Lisa TobinRetail Services General Manager, Technology

for Australia Post

KEEPING AUSTRALIA CONNECTED

KEEPING AUSTRALIA CONNECTED

Lisa TobinGeneral Manager IT, Retail Services

KEEPING AUSTRALIA CONNECTED

AUSTRALIA POST – THE FACTS

Australia’s most extensive delivery and retail network:

One of Australia’s most

trusted brands.

Excerpt from RepTrak™

Report Feb 2012.

4,400+ postal outlets including around 2,500 outlets in rural and remote areas

Founded in1809Australia’s oldest continually operating organisation

Delivering

100 million mail

items to

10.9 million

address across

Australia every

week

Providing access to

government

and business services (e.g. bill payments, day-to-day banking transactions, money transfers or passport applications)

Apple Australia

Australia Post

JB HI-FI

Toyota Motor Corporation

Nestle Australia

77.85

76.26

76.09

75.17

74.35

KEEPING AUSTRALIA CONNECTED

WE HAVE TWO VERY DIFFERENT BUSINESSES

>Letters volume in decline

>Price constrained

>High fixed costs

>Profitable opportunities

>Profit needed to fund major investment in eCommerce, Parcels and digital growth

<250g 1,900 metro outlets

ParcelseCommerce

Digital communications

Super storesBusiness Hubs

Multi-channeltrusted

services

RegulatedRegulated Non-RegulatedNon-Regulated

Transport Regional & Remote

2,500 outlets

KEEPING AUSTRALIA CONNECTED

AUSTRALIA’S COMMUNICATION NEEDS ARE CHANGING

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

4400

4600

4800

5000

5200

5400

5600

0

2

4

6

8

10

12

letter Volumes Delivery Points

• 2009/10 Australians sent

27 billion text messages

and 400 billion e-mails.

• Globally 140 million tweets per day

and 900 million Facebook accounts.

• Online spending is predicted to grow by at least 10

per cent annually through to 2020.

• 70 per cent of Australia Post’s parcel deliveries

now generated by an online transaction.(m

) (m)

Impact on our network

KEEPING AUSTRALIA CONNECTED

Build a sustainable communications business physically and digitally.

1

Embed business efficiency and service quality.

Embed culture and behaviours, build capabilities and foster engagement.

WE’RE TRANSFORMING OUR BUSINESS

Build a world-class parcels business with excellence in service performance.

2

Build a multi-channel trusted services offer for consumers.

3

4

5

KEEPING AUSTRALIA CONNECTED

WE’RE ENSURING THE ONGOING RELEVANCE OF OUR RETAIL NETWORK

7

• Tailoring store formats to customer demographics.

• New superstores opening across the country.

• 24/7 parcel lockers and

self-service zones.

• In-store online shopping.

• Creating new product categories, eg Travel.

• Multi-channel delivery of core products & services.

• Optimising supply chain.

KEEPING AUSTRALIA CONNECTED

WE’RE GETTING IN TOUCH WITH OUR CUSTOMERS

• New customer experience program “retailCX” to capture the “voice of the customer” and measure the true customer experience.

• Customers asked to provide feedback on their in-store experience.

• Around 110,000 responses received over three weeks.

• 72% of responses provided online.

• Survey takes around 4 minutes.

• Prize of $1,000 worth of gift cards on offer as an incentive.

• Each post office receives a weekly report with their feedback.

KEEPING AUSTRALIA CONNECTED

WE’RE ADAPTING TO CHANGING CUSTOMER PREFERENCES

10

Australia Post Digital Mailbox Launch Q4 2012

What it means for:

• Post: A new platform/channel in our digital suite.

• Business: A cost-effective new channel to

communicate with

and market to customers.

• Government: Opportunity for trusted, secure

communication with Australians.

• Consumers: A new tool to manage day-to-day

life.

KEEPING AUSTRALIA CONNECTED

WE’RE HELPING CONSUMERS & BUSINESSES GET ONLINE

Delivery Choices

Providing more convenience & choice

New processes

New International Products

Low cost satchels and boxes

New products, competitive pricing & home delivery service

Farmhouse Direct

Online services

Upgraded business hubs

Supporting consumers & Australian retailers get online

Superstores & extended hours

24/7 access & Parcel Lockers

KEEPING AUSTRALIA CONNECTED

OUR LEARNINGS

• Online will continue to grow – it’s something you can’t ignore.

• Online doesn’t have to be at the expense of bricks and mortar retailing – you can help customers adapt to transacting online.

• Start small – build your online presence with a limited product set to gauge demand.

• Leverage proven payment solutions that already exist to get on line faster. Don’t create your own.

• Get to know your customers’ needs in detail – listen and respond to them.

• Expand the way customers can engage with you (mobile App, website, social media, digital marketing) and be responsive to changing needs.

aiia : voice of the digital economy