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Royal Mail announces £70 million initiative to improve the value of business mail through barcode technology

Royal Mail today announced the £70 million investment in a major initiative that will see barcodes added to letters so that large companies can track their mail through the postal network.

  • Royal Mail believes the initiative will increase the value of mail to businesses by providing them with the ability to track bulk mail consignments through to delivery round.
  • The investment is part of Royal Mail Group’s strategy to manage structural changes in the letters market, which will continue to be an important source of revenue for the business. Our core letters business is key to our financial success, generating almost £4.8 billion in reported revenue during the 2012-13 financial year. Our letter revenue increased by three per cent on a like-for-like basis.
  • It means business customers will know when customers’ statements and business mail will be delivered. Previously, this information had only been available through higher cost tracked services.
  • Large mail users will be able to improve their efficiency and customer service by staffing operations, such as call centres, based on the exact date customers receive statements or business mail. It will also enable them to improve the effectiveness of marketing mail campaigns and more accurately link associated communications activities, for example, a text message, with delivery of their mail.
  • Initially, 47 companies, organisations and mailing houses that collectively send more than eight million items of mail a day, including the DVLA and retailer N Brown Group, are taking part in the initiative which will launch in early 2014. Royal Mail expects it will be further rolled out to all business contract customers over the following two years.

 

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