Australia Post gears up for electronic delivery

While over half of Australia Post’s revenue is still comprised of traditional letter delivery, growth was marginal for the 2004/05 financial year at 1.2 per cent with profits from letter deliveries falling by $56.9 million.

In response to these changes, Australia Post is currently investigating the possibility of introducing an Electronic Bill Payment (EBP) system that would provide consumers with an ‘e-letterbox’, eliminating the need for companies to send printed statements via the traditional mail system.

Allan Robinson, group manager of letters at Australia Post, says it is currently in talks with local technology providers to determine how such a platform, or others like it, could be added to its suite of services.

“It is possible that for some of our customers such a service would have an appeal as it could assist them in reducing their transaction costs and (allow for) their customers to be electronically connected,” says Robinson.

But while concepts like electronic bill payment will likely have a place in the future business mix of Australia Post, it insists that paper-based bills and statements are set to have a great deal of longevity. Robinson says consumers favour mail for the delivery of important messages and any business that ignores this preference does so at its own risk.

“Nine out of ten people surveyed prefer mail, and a good number of them say they would consider switching suppliers if their preferences are ignored. Businesses need to remember that it is the 'value equation' that counts at the bottom line, not merely the costs of printing and delivery,” says Robinson.

Invoicing is emphasised as a valuable point of contact between a business and a customer, not merely a cost but also an opportunity to enhance relationships, reinforce branding, offer services and promote new products. There is room for all channels, but customers should always be given the choice between electronic delivery and paper-based bills and statements.

“It is important to recognise that there will always be Australians who are not connected to the internet or do not wish to, or cannot afford to use a computer,” says Robinson. “A complete migration to electronic delivery of bills and statements is unrealistic.

“Letters are preferred because they do not cost the consumer anything, they are tangible and less easily overlooked, can be easily retained for taxation and other records and are easily shared with other household members.”

It is estimated that it currently costs companies between $1.50 and $3 to send a single printed bill.