Royal Mail brand positioning needs work

[TrueBlueTerrier]

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Yesterday, Royal Mail (the UK postal service) implemented its annual stamp price rise. The cost of a First-class stamp for standard letters has increased by 12 per cent (inflation in UK is currently 4.4% – source: Office of National Statistics).

The move follows a ruling by Postcomm, UK’s independent postal regulator, that allowed Royal Mail to increase the price of individual stamped mail services by “up to 13%”.

At its simplest, then, Royal Mail took to the maximum allowable increase laid down by the regulator and implemented it. What’s wrong with that?

Well – it simply depends how you want to position yourself.

Moya Greene, Royal Mail’s Chief Executive Officer, said: “After these increases, we will continue providing value-for-money as our prices will still be among the lowest in Europe”. We’re sure that a set of statistics could be created to support this statement, but we couldn’t find one. Instead, we looked at what we believe UK consumers would consider as the most similar European markets – Germany, France, Italy and Spain. We found the typical 1st class stamp for a standard letter to be €0.55 or 46p, making Royal Mail’s price exactly average, rather than “amongst the lowest”. Nothing to be ashamed of, then, but why try to create an image of lowest price when you’re not?

Presumably because that’s what customers care most about? Not according to Postcomm’s own survey of Royal Mail customers, which reveals:

Residential customers send most of their mail (73%) via First Class, and yet only 8% of residents actually knew what the price of a 1st Class stamp was
The three top drivers of consumer satisfaction are
Reliability of delivery time
Number of days mail is delivered
Time of delivery
40 per cent of consumers very satisfied with Royal Mail and 44 per cent satisfied.
Overall, most residential customers continue to consider the postal service good value for money, with 82% rating it very good or good value for money for 1st Class mail
These findings told us that the price of the stamp didn’t seem to be the main issue for consumers – they wanted a consistent and reliable delivery each day – in short, something they could trust.

In Royal Mail’s most recent Annual Report, it states “a new age is dawning for Royal Mail as it modernises and builds on its reputation as the customers’ champion”.

We were a little surprised by this claim too, as it didn’t fit with our everyday experience of Royal Mail’s brand, nor was there anything in Postcomm’s survey to support it either. It’s a bold statement, and more in keeping with challenger brands like Virgin or Apple, i.e. those who fight near-monopolies or dominant legacy positions, rather than are one themselves !

None of the above makes a price rise wrong, as Royal Mail desperately needs to invest in its infrastructure and its staff training to improve its offer. But it should focus its brand positioning on what customers care about most, and make any statements about being a customer champion framed as an ambition, not a fact

[hubbahubba]

lets be honest,unless you are a large bulk poster,on a regular basis,RM couldn't care less what anyone thinks,least of all the general public...

[Judgee]

"These findings told us that the price of the stamp didn’t seem to be the main issue for consumers – they wanted a consistent and reliable delivery each day – in short, something they could trust."

Unfortunately this seems to be the main thing that RM management are set on destroying!

[steven100]

"These findings told us that the price of the stamp didn’t seem to be the main issue for consumers – they wanted a consistent and reliable delivery each day – in short, something they could trust."

Unfortunately this seems to be the main thing that RM management are set on destroying!

"RM management are set on destroying". Destroying, don't you mean destroyed. RM management at the very top are a disgrace and its about time some posties started to realise that they will soon be paid min wage soon and conditions will be piss poor.
I've heard the same old pish mortgage etc.....but how will you pay your mortgage on min wage. Time to back the union!!!!