In his FIPP presentation at the Axel Springer Journalisten Club, entitled ‘The False Economy of Cheap International Post’, Adam Sherman (pictured) outlined the various challenges being faced by the mailing industry through increasing postal rates. Escalating postal prices are being driven by currency, increased security measures, less airline capacity and subsequent increase in line-haul charges and domestic postal increases caused by declining volumes) and how those factors were contributing to distributors resorting to cheaper methods of delivery and absorbing costs to keep themselves competitive.
This however, Adam explained, was far too simplistic a solution, and more often than not, an ultimately self destructive one.
Using a combination of in depth research conducted by Dovetail in 2009 and data gathered from a mailing trial conducted by Air Business (complete with the unedited responses from pleased subscribers detailing the positive effects of timely delivery), Adam was able to show a hypothetical projection of the true impact of choosing cheaper less reliable services and how it had an negative effect upon renewal intention.
The figures derived from this specific weekly title case study, showed that by using inferior postal methods to send publications to subscribers globally that the loss of subscribers who were not satisfied with delivery would total 607 and revenue of £73k pa.
"Often publishers fall victim to the allure of services that offer possible savings, without understanding the repercussions of the long term value to subscribers. Better to choose quality from the outset and receive value added services that translate into the kind of delivery satisfaction that keep subscribers coming back.”
About Air Business
Air Business says: “In its 25th year, and owned by The Irish Post Office, Air Business is the leading force in the innovative distribution of the printed word and product on a global scale. Servicing all types of customers, it is focused on fast, efficient and consistent delivery whilst being great value for money.”
