In a previous blog, I offered some thoughts on the possible digital future for AusPost. In response, I have been contacted by one of their social media consultants, drawing my attention to the “National Conversation“.
First, I acknowledge that AusPost is attempting to have an “open” conversation with customers, but I don’t see how this is really helping, other than generating a range of (conflicting) opinions, with little cohesion around the key issues. Participation rates in the Topics to date has been very erratic (in terms of numbers, and geographic distribution).
Second, I have read CEO Ahmed Fahour’s latest address, and frankly it did not inspire me. Basically, it was a whinge about the decline in letter volume, and the “challenges” of the Internet (which, as he says, has been with us for 25 years…. hardly a new event!) I also think there are some factual inaccuracies in Mr Fahour’s assumptions: I don’t believe that Australians are any less digital citizens than their OECD counterparts – they have always been reasonably early adopters of new technology (as evidenced by the number of smart phones and tablets). Where they have been slow is in moving to online services, but this is in large part due to poor Internet services (notoriously slow connection speeds and restricted bandwidth, and exorbitant access fees), coupled with a paucity of reliable online platforms – which is ironic given the push towards eGovernment, eCommerce and the digital economy around 1999-2001.
Third, and staying on the topic of eCommerce, the one recurring theme that does emerge from the National Conversation so far is the high cost of sending small parcels. I agree with some of the feedback that it is often cheaper (and quicker!) to order consumer items from overseas online retailers. Shouldn’t Australian consumers expect to benefit from the economies of scale to be achieved from a growing parcel business?
Finally, my previous blog suggested that digital transactions are the future for AusPost (while acknowledging the need to maintain its statutory obligations for letter delivery) – but apart from e-mail and bill payments, Mr Fahour’s address was rather silent on this point. That scares me, as it suggests a lack of vision for an integrated digital strategy. After almost 5 years in the job, you’d think a few more ideas would have emerged by now.
(Afterthought: maybe AusPost should check out what Shomi is doing – a local start-up with some smarts in linking the physical and digital worlds.)
Post Script (no pun intended…)
After posting this article, I was challenged by one of my readers to say what I really think about AusPost. It’s a good question, and I think the jury is still out, on whether AusPost has the right strategic direction to embrace a digital future:
On the one hand, Letter Delivery is an essential service – a protected monopoly with speciifc community service obligations – but challenged by a declining business model.
On the other, Parcel Deliveries are going gangbusters thanks to online shopping – but it’s hard to generate margins without added value services.
AusPost has access to some great customer data, strong core capabilities around logistics and transactional processes, and huge brand recognition – but the technology has not kept pace, and they struggle to commercialise their assets.
But their social marketing consultants are reading what I write…..