Australia Post’s Parcel Delivery Experience Transformation Team (PDET) raised NPS by 27% and Saved $1.7m in Cost Savings
A key initiative of Australia Post’s Parcel Delivery Experience Transformation Team (PDET) is the “Text Your Choice” program, which allows customers ease in choosing their preferred method of parcel delivery.
Text Your Choice has significantly raised NPS and customer experience satisfaction levels. Its customer-led design approach has driven considerable customer, operational and financial benefit, with 80% (previously 10%) of customers choosing their personalised delivery options.
Need for Change Becomes Apparent as Industry Expectations Rise
Australia Post knew that it had to improve the customer experience of parcel delivery services. Disruptive technology driven by companies like Amazon and Uber have raised expectations for friction-less service, whilst the growth of eCommerce has driven a rapid expansion in parcel deliveries.
In a world where consumers increasingly expect choice, convenience and getting what they want, when they want it, Australia Post’s incumbent system had to be overhauled.
Introducing the “Text Your Choice” Initiative
The Parcel Delivery Experience Transformation (PDET) team was established in 2017 with the goal to deliver a better parcel receiver experience, remit to reduce carding from 15% of street delivered parcels to 11%, and to improve parcel receiver NPS.
To achieve these goals, the PDET launched a number of initiatives focused on increasing safe drop and more delivery choices for customers.
They also focused on and increasing communications with receivers’ in flight, so they could tell Australia Post how they choose to have their parcel delivered.
A customer experience review of the end to end parcel delivery experience was undertaken and delivered a journey map, “Deliveries That Make You Smile.” The PDET team was chartered to implement and manage projects that would deliver on this inspirational customer journey.
Key to improving the journey was the ‘Text Your Choice’ initiative. It originated from an outbound call centre making calls after delivery to see if customers wanted options other than “collect at post office.” While the customers didn’t choose other options, they really liked being given a choice.
This insight led to the adoption of an entirely new customer-lead design approach to “Text Your Choice.” It incorporated direct input into the design by measuring customer responses to high-fidelity trials of the solution, through both CX design and operational innovations.
The trial was highly manual but from a customer view, it was authentic, and they didn’t know until post- delivery that it was a trial. This meant information on how customers would behave in production could be gathered.
The resulting service established an innovative method for 2-way communication with parcel receivers in real time via text message. This greatly improved the response rate of customers choosing how they wanted their parcels delivered.
The Spectacular Impact of “Text Your Choice”
The results of Text Your Choice demonstrated significant financial and NPS benefits to Australia Post, including:
- Increased NPS for carded articles where requested by a customer by 27% by giving customers delivery choices
- Improved two key KPIs for the enterprise – First Time Delivery (successful delivery first time, without re-handling, according to the customers’ choice) and Carded (a measure of what % of all parcels are taken to the post office for collection after failed delivery attempt)
- Reduction in the number of customers being carded (articles taken to the post office when not available for delivery) by 1.548m
- Increased the number of customers actively choosing their own delivery options from ~10% of known customers, to >80% by providing an easy to use, safe (no click through required) and timely notification
- Reduction in the operational costs associated with carding of $1.7m
- Project pay back in year 0
As a result of all initiatives (of which Text Your Choice was key) under the Parcel Delivery Experience Transformation team, Parcel receiver NPS improved by 25% and calls to the customer contact centre went down significantly.
Similarly, the carding of street delivered parcels was reduced to 10.8% while first time delivery improved to 91%.
The customer-centric design approach has also been incorporated into many projects with the team responsible for ‘Text Your Choice’ being consulted for input to ensure a customer lens is applied in future product design.
Australia Post’s Innovative Initiatives are More to Come
After seeing actionable insights from increased customer communication channels, the Parcel Delivery Experience Transformation Team (PEDT) are always actively searching for opportunities where new solutions can be created and implemented.
Led by customer insight that keeps them in-tune with industry demands, the Australian Post will continue allowing feedback to take the wheel and steer them wherever the “Choice” of their customer will take them.
Overview of Results:
- 7m in operational cost reduction
- NPS increase of 27%
- 91% first time parcel delivery
- Project pay back in Year 0