Royal Mail must learn to put customers first or lose out

The Royal Mail's decision to apply a new stamped mark declaring 'Delivered by Royal Mail' on all bulk mail from mid-September has incensed the direct mail industry.

Royal Mail customers have been extremely critical of the plans, not least because of the short period of notice they have been given and the positioning of the proposed stamp. Should Royal Mail’s plans go ahead, then it will place its stamp in a position that’s currently reserved for its customers’ logos and promotional messages. Organisations will have just two months’ notice to change the creative on their envelopes to accommodate these changes, while the many companies that already have large stockpiles of printed envelopes will face the unsavoury prospect of either having their promotional marks overprinted or simply having to lose money by scrapping their existing stock.

Bulk mail customers have already found themselves at the receiving end of unprecedented price increases this year. These have prompted many to not just review how much mail they send, but to also consider whether to continue to use the medium at all. It is strange that Royal Mail seems intent on further alienating some of its best customers.

Unrealistic
A monopoly mentality clearly still exists at the Royal Mail. Little progress has been made to resolve the urgent need to be more customer-focused, a need highlighted by the government-commissioned Hooper Report. Taking the time to consult its largest customers and stakeholders would have shown Royal Mail that its proposal and timescales were unrealistic and would generate additional costs for its customers. This would be unacceptable even for an initiative that had only just been thought of, but we understand that Royal Mail’s new mark has been eight months in the planning.

Royal Mail is justifying the proposal on the grounds that 80% of their postal workers support it, as does their union. This again shows that Royal Mail considers its own internal issues more important than its customers. I understand that Royal Mail has likened their proposal to microchip manufacturer Intel’s famed ‘Intel inside’ campaign. Yet, there are crucial differences between the two. Firstly, Intel’s campaign was voluntary in that it was up to the PC OEM to agree to take part and apply the stickers. Secondly, Intel created a cooperative advertising fund to help promote their partners’ products.

But there is another reason why the DMA is opposing this proposal, and it’s a matter of principle. We believe that it’s important to establish who ‘owns’ the envelope. Royal Mail shouldn’t have the right to overprint anything on its customers’ mail that isn’t specifically designed for more effective processing or delivery of mail. This could set a worrying precedent; remember that from early next year we could see a privatised Royal Mail. If this isn’t challenged, then it opens the door to allowing Royal Mail to overprint whatever they like, wherever they like, on their customers’ mail without seeking permission.

Alex Walsh is head of postal and environmental affairs at the DMA