DM DEVELOPMENT THE POSTAL SERVICE: LEADER OR FOLLOWER

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DM DEVELOPMENT THE POSTAL SERVICE LEADER OR
FOLLOWER
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CONTENTS

• WEGENER GROUP
• THE MAIL VALUE CHAIN
• THE LINK "UPSTREAM / DOWNSTREAM"
• Impact of DATA knowledge on distribution
• Case study Newspapers
• THE ROLE OF THE POSTAL SERVICE
• CASE STUDY CHANGE OF ADDRESS / ALLIAGE
• POSSIBLE SCENARIOS
• THE POSTAL SERVICE only in distribution
• THE POSTAL SERVICE as integrator
• THE POSTAL SERVICE as unifying force

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ACTIVITIES BY WEGENER

• Wegener
• Dutch group,
• Listed on the stock market
• 8000 employees / 1 billion in turnover

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WEGENER DIRECT MARKETING

• Belgium
• Holland
• UK
• Republic of Ireland
• France
• Spain
• Portugal
• Italy
• Greece

• Germany
• Australia
• Switzerland
• Denmark
• Sweden
• Norway
• Finland

W
1500 EMPLOYEES / 150 MILLION TURNOVER
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WEGENER DIRECT MARKETING

• PASSION IS THE REAL DRIVER OF SUCCCESS
• WE ARE PASSIONATE ABOUT THE BUSINESS OF DIRECT
  MARKETING
• WE BRING THIS PASSION TO THE WAY WE SERVE OUR
  CUSTOMER AND OUR BUSINESS PARTNERSHIPS

OUR MISSION To create and use data to enable
our customers to find, manage and reach their
consumers in EUROPE.
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WEGENER DIRECT MARKETING FRANCE

• DATA CAPTURE
• RENTAL OF BEHAVIOURAL DATA ON AND OFF LINE
• PROCESSING AND ENHANCEMENT OF DATA
• DATA HOSTING

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MAIL VALUE CHAIN
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VISION OF THE MARKET

• Separate markets (DM and CRM) which are moving
  closer together

Contacts direct customers
DM
Business development
call centers web sites face to face
Loyalty
Actions DM customers
CRM analytical
CRM
Analysis customers
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BUSINESS DEVELOPMENT AND LOYALTY
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We need to work together
Value Return on investment for advertisers What
Drives Value Simplicity, Speed, Efficiency,
Reliability If we dont work together,
advertisers dont get the value they need
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DM VALUE CHAIN

• THE DM CHAIN is complex
• The players are fragmented
• The trade unions are not unified
• DM suffers from low esteem from marketing
  managers
• The Cost of postage is often considered as an
  inhibiting factor on development
• ? HOW TO OPTIMISE THE CHAIN TO DEVELOP BUSINESS
  AND HELP ADVERTISERS TO INCREASE THE QUALITY OF
  THEIR CUSTOMER RELATIONSHIP?

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CASE STUDY THE LINK UPSTREAM/DOWNSTREAM
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IMPACT OF DATA ON DISTRIBUTION

• The DATABASE is often made for the internal
  requirements of the contractor (marketing,
  management, etc.)
• Postal sorting can be carried out throughout the
  chain (DB/Routers/Postal sorting office/Postal
  delivery office)
• Addressing is becoming increasingly subtle, and
  allows preparatory sorting in the DB
• The quality of a DB (nixies/duplicates, etc.)
  enables cost-cutting
• ? The DATABASE must take account of the
  arrangements for distribution of the distribution
  company/companies in its design.

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EXAMPLE Distribution of NEWSPAPERS

• How to cut the costs of dispatching and delivery
  of newspapers?
• How to improve the quality of distribution?
• How to create competition in this segment?

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Our proposal

• Design a solution to facilitate and improve the
  logistics
• Without changing the current process of
  individual subscriptions
• By enabling total optimisation of the production
  process
• Envelope-filling
• Deposit
• Transport
• Delivery to a list or addressees
• Nixies
• By incorporating possibility of diversifying
  distribution
• By providing participants with complementary
  services

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Our proposal
Systems Owners
Distrib A
Management of the distribution area to match the
distributors Delivery by area Mixed distribution
( list and adressees) Grouping of
households Sequencing of the delivery
round Qualification of the address Management of
returns
Distrib B
LOGISTICS DB
DistribC
Services
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ROLE OF THE POSTAL SERVICE
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LA POSTE - PARTNER OF THE PRIVATE SECTOR

• in France National Address Service
• Creation of a database of people who have moved
  compiled from change of address forms.
• Update of this database by the NAS
• Marketing via a network of partners
• Running of this network and educational work with
  customers and partners
• Results
• In three years, increase from 0 to 10 million
  addresses sold of people who moved
• 25 reduction in nixies
• Positioning of LA POSTE as a player facilitating
  the development of the DM market
• Limitations
• Difficulty of making the market change to
  innovative solutions (problem of investment in
  often small companies)
• Some business sectors more distant from DM not
  covered

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LA POSTE, PARTNER FOR ITS CUSTOMERS

• in France The ALLIAGE service
• Dematerialisation of nixies of large customers
• Results
• Over 8 million nixies dematerialised
• Charge made for service, pricing leads to win /
  win
• Loyalty of large customers

Customer database
1 DAY
BP
25 to 30 DAYS
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POSSIBLE SCENARIOS
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THE POSTAL SERVICE ONLY IN DISTRIBUTION

• THE POSTAL SERVICE leaves the competition to run
  the market upstream (data / print / routers)
• THE POSTAL SERVICE focuses on its core business
  of distributing the mail to become an
  indispensable player for this link of the chain
• Specialisation and concentration of resources
  allowing a dominant position in its core business
  
• The competition will set up in business anyway,
  and the absence of a link with the market
  upstream will handicap THE POSTAL SERVICE.

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THE POSTAL SERVICE INTEGRATOR

• THE POSTAL SERVICE is positioning itself on all
  links in the chain, and is in competition with
  all the players in the "upstream" market
• Possibility of offering integrated range of
  products and services to its customers
• The players in the "upstream" market will tend to
  compete even more with THE POSTAL SERVICE in its
  traditional business

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THE POSTAL SERVICE UNIFYING FORCE

• THE POSTAL SERVICE positions itself as a leader
  in the DM chain by creating partnerships with
  "upstream" players, and by offering its customers
  integration of services supplied by other
  players.
• Possibility of offering integrated services
• No competition with upstream
• Development of the market by development of each
  link in the chain
• The limit is the will and the ability of the
  players in the "upstream" market to invest

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WHAT ADVERTISERS CAN DO

• Convince your THE POSTAL SERVICE we are in this
  together
• Show you are interested in more that just prices
• Learn to talk about the magic multipliers
• if this is good for me, it is probably good
  for a dozen other companies
• for every new customer I get, you get another
  40-50 mailings
• thats a lot of extra business

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WHAT THE POSTAL SERVICES CAN DO

• Listen and Learn
• Ask your customers what they need
• List to what is behind their complaints
• Leverage
• Use your position to work for the whole of direct
  marketing
• If direct marketing is a strong media, your
  customers will be happier and your business will
  grow
• Lead
• Proactive vs. Reactive
• Do something
• Do something today
• Remember Great strategies are built by hard work
  and trial and error, not grand plans

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WORKING TOGETHER

• Whatever the future may bring. We are in this
  boat together We will succeed if we
  work together to build value for THE CONSUMERS