Connecting with Customers

Parcels

PARCELS AREN’T JUST FOR SENDING BIRTHDAY PRESENTS ANY MORE. IN RECENT YEARS, ONLINE SHOPPING HAS CHANGED THE CONSUMER LANDSCAPE, AS SHOPPERS MOVE FROM CROWDED SUBURBAN MALLS TO BUSY VIRTUAL ONES, WHERE THEY DEPEND ON DELIVERY AGENTS TO SHIP THEIR PURCHASES.

This market is growing – shipping and delivery has suddenly become a fast-paced and highly competitive business in Canada.

With our national network that reaches every household in the country, no one is better equipped to offer reliable shipping and delivery services than Canada Post. In 2007, revenues from our Parcels line of business totalled more than $1 billion, and together with our Purolator subsidiary we led the market. But our parcel volumes were lower than expected, and our competitors are multinational firms with higher marketing budgets and comparatively low operating costs. To maintain our lead in this competitive market, we must build business by providing the high-quality service customers are looking for.

Our business customers need to satisfy their own customers, and what they want above all is consistent, on-time delivery. In 2007, Canada Post introduced measures to improve operational efficiency in our key Toronto and Montréal parcel processing facilities, and to measure our service performance across all product lines. Because customers also want to track the progress of their deliveries, we improved our parcel scanning capabilities – among our core products, all parcels are now bar-coded, and delivery personnel carry hand-held scanners.

We launched several new products in 2007 as well, to ensure more customers can find a delivery option well suited to their specific needs. The new Light Packet™ product, for example, is attractively priced and just the right size for many eBay shippers. In addition, we introduced various measures to improve our customer service, including a simplified claims process and a billing adjustment process to give commercial customers their money back when they overestimate the weight of their parcel.

Our goal is to provide reliable service through a range of parcel products that are quick, easy and convenient to use. The response from customers has been positive – our research last year showed an increase in their loyalty to Canada Post. That’s the measure that counts most, as we continue to grow with our customers in a fast-changing market.