Royal Mail to up B2B marketing drive

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Royal Mail is to step up efforts to push its B2B products and services later this year in the wake of a steep decline in revenue from its letters business.


It is believed that activity to launch later this year will focus on the services such as database management and data cleaning services it currently offers companies including Tesco not currently widely promoted.

The parcel delivery service it offers online retailers will also be highlighted.

It is thought that Royal Mail chiefs hope that the campaigns will shift perceptions that that the firm is just a letter delivery service.

Royal Mail declined to comment.

The activity follow losses from its core letters business resulting in a need to boost revenue from areas with growth potential.

Revenue declined to £9.2bn in the financial year 2010/11, down from £9.3bn a year earlier. The loss was blamed on a 4% fall in core mail volumes.

The postal service’s UK letters, parcel and international business swung to a £120m loss from a £20m profit in 2009/10.

The company said in June that it would be looking to bolster the media and data services it offers to offset the losses, and make it more attractive to potential suitors.

In June, MPs paved the way for a full or part sell-off of Royal Mail by passing the Postal Services Bill.

Last week, Royal Mail was forced to delay plans to introduce a “delivered by….” mark on direct mail after being inundated with complaints from direct marketers concerned that the change would reduce response rates from DM packs.

It is believed that Royal Mail will now consult with industry bodies such as Direct Marketing Association before preceding.

Royal Mail recently appointed Beta to handle creative work.