Breaking Barriers to Online Growth
Consumers say they can imagine making nearly 75% of their purchases online. To turn that vision into reality, retailers, carriers, and others will need to meet those buyers’ exacting expectations.Read the article
Government-owned postal organizations are being challenged to transform their traditional role as domestic mail carriers into preferred e-commerce shipping partners, and in some instances to become global parcel operators. At the same time, the rapid emergence of e-commerce is boosting parcel volumes and opening an opportunity for traditional postal operators to reinvent themselves as preferred parcel vendors due to the density, reach, and low-cost nature of their networks.
Based on business transformation research and best practices, here’s a three-step approach for a long-term postal transformation plan:
Postal leaders from across Europe shared these insights about how their organizations tackle transformation.
Reducing costs in corporate and other indirect functions first will give business leaders the credibility they need to begin taking out costs from overall operations.
During a transformation, postal operators need to hit their service levels, both for their universal-service obligations and for new businesses.
A postal transformation is not a one-off project. Expect to make big operational changes every three to five years.
While no aspect of transformation is easy, some parts are harder than others and have long lead times—and those should be tackled first. Labor reform, redefined service levels, pricing freedom, and other tough issues need to be targeted in the early stages of transformation.
In a multichannel world, consumers have high expectations for sales, service, and fulfillment. Companies that meet these expectations will cement relationships with their consumers and generate long-term growth in online and overall sales. These guidelines can help retailers develop a comprehensive approach for expanding online sales:
Retailers need to decide which products and consumers matter most in the online channel; they then must focus on understanding what is preventing those products from selling and those consumers from buying online.
Organizations can be their own worst enemies when it comes to improving the online sales and fulfillment experiences. Without fixing the root cause of consumers’ dissatisfaction, retailers can waste resources by blindly chasing online sales.
Retailers, carriers, financial institutions, and logistics and fulfillment providers all have important roles in improving the online shopping experience. Retailers will need to reach out to their partners in order to remove many of the important barriers, especially those related to delivery and return.