CIM Digital Summit 2015 - The Post Office: Pete Markey's Presentation

The realities (and opportunities) of digitaldisruption

The Post OfficePete MarkeyChief Marketing Officer

September 2015

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What is your perception of the Post Office?

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Does it conjure up images such as this?

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Or this?

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So how big a job do we have?

The Post Office by numbers

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We have huge scale and reach

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• 17-18m customers visit our branches every week

• 45m online visits per year

• 3m passport renewals per year

• 132 products we can sell… but our 4m ‘active’ customers have average product holding of 1.2

• 2nd most trusted UK brand

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Lots of customer touch points

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Digital disruption is an opportunity and a challenge

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• Online postage

• Multi channel experiences

• Customer perceptions of other brands

© 2015 KPMG Nunwood Investments Limited is a subsidiary of KPMG Holdings Limited, a subsidiary of KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom.10

The Six Pillars of customer excellence

PersonalisationUsing individualised attention to drive an emotional connection

ExpectationsManaging, meeting and exceeding customer expectations

Time & EffortMinimising customer effort and creating frictionless processes

IntegrityBeing trustworthy and engendering trust

EmpathyAchieving an understanding of the customer’s circumstances to drive deep rapport

ResolutionTurning a poor experience into a great one

Five years of research shows that every outstanding customer relationship has a universal

set of qualities: The Six Pillars™.

© 2015 KPMG Nunwood Investments Limited is a subsidiary of KPMG Holdings Limited, a subsidiary of KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom.11

The UK CEE 2015 Leaders

© 2015 KPMG Nunwood Investments Limited is a subsidiary of KPMG Holdings Limited, a subsidiary of KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. Printed in the United Kingdom.12

Defining the New Era

Customer

experience is

the new

branding

We enter a new

era of business

Omnichannel

is everything

Digital must be

integrated, not

isolated

Re-

humanising

the

experience

Emotionally

engaging with

customers

Knowledge

management

ensures

success

Superior insight

distributed to

many

UK Plc is

outperformed

globally

Many customer

programmes fail

to deliver value

2015 UK customer experience themes

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How we’re responding to this opportunity

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We’re in the middle of the biggest retail transformation in the UK

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Transforming our branches

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Changing perceptions through the lens of brand

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We have a customer brand promise to provide focus and direction

CONSISTENCYCONVENIENCE

COMFORTCONFIDENCE

We help youget the important things

in life done

There’s nothing that beats the buzz of achieving the

important stuff in your life (your dream home, a new business, even a holiday!). And yet, accomplishing the

important stuff in life can be fraught with complexity,

which costs time, effort and stress

The Post Office is the home of the important stuff in life. We’re here

to help you sort it simply, quickly and easily

The Post Office. We help you get the

important things in life done

Simple but universallyrecognised truth

Brand Truth Customer promise

We’re listening to our customers

We tested a number of potential positionings using neuroscientificresearch (capturing memory encoding, attention, engagement, emotional intensity and approach/ withdrawal)

The findings:Post Office is a facilitator – it helps you get all those important things on your ‘To Do’ list sorted

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Transforming our digital experiences

We’ve listened and launched a new site inline with life stage needs

You’ll be surprised what we offer

Improving the online experience

• Re engineered key pain points in the online customer experience• Improved SEO and PPC strategy • Introduced Next Best Action (NBA) capability to key pages of the site

We’re constantly listening

We have started using Lithium which is a customer service tool which allows us to see different streams of customer questions by product area, ensuring we can react speedily and appropriately to our customers.

A buzz monitoring tool which allows us to get realtime customer insight as well as social monitoring.

We use it to help plan campaigns, obtaining social insights, run activity reacting to the moment and measure the impact of a campaign post activity.

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Listening and adding value to the conversation…

Last Posting Dates Gift Wrapping Ideas

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We’re getting our message out first

Tweet

drove 7000

website

visits

1000+

shares

…tapping into culturally relevant conversations

…being first to market to break news of key changes affecting our customers

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…and also tapping into the nations love for dogs!

200+ dog

photos

submitted

in 24 hours

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Showing we

care, by

proactively

checking up

on customers

Being

positively

surprising at

the right

moments

Having a 1-2-1 connection with customers in a way that cannot be achieved via traditional formats

Mortgage calculator and response

Through Zoopla

Partnership with Last Minute.com to drive sales of Post Office travel

Products e.g. travel insurance and travel money. Dynamic creative

Used to drive response

For example:

Forging great strategic partnerships

For example:

Reunited 10 lucky families for Christmas, using a campaign

that fused social and radio. Fully mobile optimised

experience Generated 3,000 competition entries

10 different questions over 10 days, which shaped the

Ultimate Holiday. We gave away the Ultimate Holiday

experience (Australia) to 1 lucky participant. More

than 23,000 entries and 36% opted in to marketing

comms (data capture) with 55% increase in Facebook

Fans

With other great brands

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Personalising the experience across channels

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Personalised

Counter experience

2.

Personalised

communications

3.

Personalised

Digital experience

Personalising the the entire digital journey

To personalise

each component

Page relevant

to product holding

Journey relevant to customer persona

including product holding.

Relevant x-sells are made along the journey.

Move from one

size fits all

To personalising entire

pages across the site

To personalising the

entire journey

Listening to the needs of our customer base

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UK Pulse panel is a regular online feedback and discussion tool. It gives

customers and colleagues the opportunity to provide their opinion on

various issues at the Post Office

Currently 4,000 customers and over 850 colleagues are signed up to the panel

and this is continually refreshed

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Enhance the customer experience in branch

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Take more of the customer experience

online

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Use data to inform better designs

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Visual Collaborative Insight DrivenDedicated space

Drive a more agile way of working

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In summary

- The Post Office is on a journey

- Digital disruption is a real opportunity for our business

- We have a fantastic opportunity as a trusted brand and multiple customer touch points to build a stronger relationship with our customers

- Our new brand promise helps provide direction for business change and our go forward digital & data strategy

- There is opportunity to do more

This is just the start…