2004-05 Annual Report - Australia Post

profitability in the letters business.
This presents a real challenge for
our business. The good news is
that research continues to show
that consumers prefer to receive
information from businesses in
writing – and on paper. Whether
it be transactional information
or promotional messages, this
consumer preference for paper
gives us confidence that letters
will be a highly valued form of
messaging well into the future.
Our strategy in letters involves
repositioning mail as the most
effective way for businesses
to communicate with (and sell
to) their customers. We have
been actively doing this for
several years now by engaging
the advertising industry and
developing new products,
services and tools to suit the
needs of business. A significant
initiative this year was the launch
of our Impact Mail service,
which gives advertisers almost
complete freedom and flexibility
in the design of their promotional
mail campaigns (see p. 22).
Our challenge is to demonstrate
that promotional mail is highly
effective and easy to use, so that
businesses consistently include
letters in their advertising and
customer relationship campaigns.
Retail and agency services
As the nation’s largest physical
retail network, our 4,474
Post outlets are an essential
commercial and social hub for
communities across Australia.
Our research shows that our
customers are satisfied with
their experience in Post outlets
because they get helpful, efficient
service, in a convenient location,
from a real person.
The geographic spread of our
outlets combined with consumer
trust in our brand are terrific
assets that have enabled us
to position the network as
a community-based agency
where Australians can transact
with banks, business and
government. While we are known
as a destination for agency-based
banking and bill-payment services,
we also enhanced our reputation
this year as a destination for 100point
identity checks, international
money transfers and travellers’
cheques (see p. 27). Over the
coming year, we will re-brand
giroPost as Bank@Post, and offer
people living in rural and remote
areas of Australia even greater
access to banking services. We
will also broaden the range of
agency services we offer and
build recognition of these services
by marketing our retail network as
the nation’s trusted intermediary.
We know that 90 per cent of our
retail customers come to our
outlets because they want to do
one of four things: lodge mail,
buy packaging, buy philatelic
products or use our agency
services. Our ongoing challenge
in retail is to refine the mix of
products and agency services
in our outlets to ensure that
they complement our core offer,
reflect local customer demand
and maximise our return.
Parcels and logistics
Our most significant aspiration is
to develop Australia Post into a
major parcels distribution provider
for Australian business. In
particular, we see strong growth
opportunities as a provider of
reliable, competitively priced
parcel services between big
business and small business.
This year, many of our initiatives
in parcels and logistics were
aimed at improving our systems,
expertise and flexibility so that
more business customers will
entrust a greater share of their
supply chain to us. For example,
we developed more sophisticated
tracking and reporting systems
to improve our handling of parcel
consignments. We know that our
business customers prefer to deal
with one distribution provider,
which is why we now offer a suite
of parcel handling and distribution
services, including express,
logistics, fulfilment and courier
services (see p. 30–35).
We also recognise that many
of our business customers are
increasingly trading in the Asia–
Pacific region, so this year we
laid the foundation for a logistics
presence in the region (through
our alliance with China Post).
We also launched an exciting
new international express service,
Express Courier International,
which is founded on guaranteed
end-to-end international delivery
standards with our long-standing
postal partners in the region
(see p. 32).
Thank you
This year’s results show what
can be achieved with a wellarticulated
business strategy,
strong leadership and staff
who are committed to the
success of our business. I would
particularly like to acknowledge
the outstanding leadership of
Managing Director Graeme John,
who in 12 years at the helm of
our business has brought a sharp
focus to improving our customer
service standards and financial
returns. I would also like to thank
my fellow board members, as
well as the management team
and staff, for their contribution
to this year’s great results.
Linda B Nicholls
Chairman
Australia Post Annual Report 2004/05 Report of Operations Chairman’s report
| 7 |