POL00448405 - Branch formats presentation - Section one

Evidence on official site

POL00448405
POL00448405

Section 1:
Recap Future Branch Formats

Overview:

The subsequent pages provide an executive

summary, recapping key information shared

throughout the project. This section covers

project objectives, goals, and deliverables while

detailing the various data sources utilised to I
inform our strategic direction and guide the I
project's progress.
POL00448405
POL00448405

Post Office In The Market.

“UK's leading Banking & Travel

Money provider”

Branch Format Breakdown:

“UK's leading
l service provider”

EVRi gam

@

amazon
SA

Customers

3,298 4,211 1,869 268 1,909 10
Mains & DMBs Locals Legacy Drop & Collect Outreach Bank Hubs

Target Branch:

@ POL profitability versus Postmaster profitability

‘We're concemed about the 2,526 post offices that are profitable for POL,
‘who run them, the majority of these are small and medium Mi

LOW postmasiscroftab HIGH postmaster oroftabil vos
ee sta

ut not profitable for the postmasters
(the top left quadrant)

IIR Uorrottale for POL and /or agent
RE Marina profitable fr 0

. . I Free fr POL 8 agent

© Mains ee al

HIGH POL I ¢ Local

profitability I 5 Legacy

att

oon

‘over 1200/9 Leas is

Dee they need deseated sat

600-1200 the

LOW POL! . oh races st
prottabitty ion

'UNPROFITABLE for POL & postmasters (2,377 POs) 'NOT for POL (941 POs) x

We have used prof plato etemine whether a post offense Poftaleor POL and postmaster) versus low /not poate

Large Locals - 2 Positions

Strategic Partner Branches - WH Smiths & Co-op

[ Medium Mains - 3 Or 4 Position With Limited Retails

POL00448405
POL00448405

Retailer & POL requirements: Locals and Mains have narrow ‘sweetspots’ of
profitability for agents and POL, making it difficult to find hosts

‘Sweetspat by Model type for POL and agent: Profiabilty to POL and Agent of Locals and Main by Customer tessions per week

Te can ost ranenes tare,
(e- Paago sa).

aycint charges agent 10- £20
per weak ors tech ncuing tbat
rey ocation ie protabe

FPR or rttaie or Pox but
ad tarts to become changing
Seimei 07:02 foc some agents
On average Payor does 328
transaction per week, ering
‘eta €1600 commision a
ven the buses PyPoint 200i)
‘oud not have dead aft,
meaning commision al prof”

0-200

PayPoint

Agent break-even on a
Mawsis"1200 es

15600 es

I Locals A Fine Balance: Locals need to be busy enough to cover POL fixed costs, but not so busy that they require dediated seafing.
Growth in NLW & other cost wil put further pressure on the Sweetspot and could lead to increasing churn
"Mid-Range format must be cheaper to putin take-out be less work for the realer and never require dedlented staffing

POL00448405
POL00448405
g eT

Project Key Objectives:

any “Grow branch profitability and secure the future of
the network for both POL and partners”

a

9,
Z bal “Plan to support automation with mail, travel &
— banking services”

aw “Improve service levels and choice for our
@e® : : 5
@am customers through automation, design & format

7 “Create a format that is modular, future thinking
and attractive to our customers & partners”
POL00448405
POL00448405

“Create a format that is modular, future thinking
and attractive to our customers & partners"

Overarching Customer Journey concept which maximises the efficiency of the automation placed into branch

\ AW \t ES

Key branch layouts for small, medium and large formats. One for each to be provided

oe

Post Office Planning guide for new branches/modification of existing ones

Connecting Online & In Branch Experiences:

Bridging the Gap:

There are several things that the Post
Office do well from a customer
perspective.

The online experience is a great
example of what good looks like, but
then this is let down when “Online* is
translated to “In-Branch”.

Our aim is to co-create with the Post
Office an enhanced branch with
evolved touchpoints focused on
better serving the customers.

The 4 key areas of leverage that we

believe will best aid this evolution are:

- Queueing
- Signage

- Experience
- Service

QUEUEING

EXPERIENCE

con
Loe
oem!

THE
CUSTOMER

on.

SIGNAGE

wy

SERVICE

POL00448405
POL00448405

Online:
jomers who use
=s online only.

Target In Branch Areas
By targeting key areas of leverage in
branch we can better bridge the gap
from “Online” fo “In-Branch”

In Branch:

Giving custo y

reason to use branches more. @

POL00448405
POL00448405

Common Themes & Areas of Focus:

SIGNAGE EXPERIENCE

The Pain Points: The Pain Points: The Pain Point The Pain Points:

“Queueing across branches is unclear and “Signage in branches varies in terms of level of Branches currently feel as though they have “Current proposition in branch is lacking
does not aid the customer to define key Clarity for the customer, resulting in a poor been left behind by the evolving nature of flexibility to service individual needs of the
journeys.” experience. retail” customer.”

What Does Good Look Like? What Does Good Look Like? What Does Good Look Like? What Does Good Look Like?

Better aiding the customer with more defined A scalable and defined signage hierarchy across Better enabling branches to prioritise customer Added elements in branch that create further
journeys that meet and deliver on their chosen in branches, that guides customers through store experience with key “moments of delight” during value add for the customer, and enhance levels of
branch mission missions. specific in branch journeys. service in branch
+ Make it easy for the customers + Clear communication and tone of voice. + Make it easy for the customer. + Speed of service.

+ Segmentation of the queue. + Familiar look and feel across branches. + Add efficiency to time consuming tasks. + Online vs Offiine,
+ Make customers feel prioritised. + Obvious services proposition points. + Lifestyle lead experiences (gift wrapping). + Colleague Led.

“Grow Sessions, Market Share, SCALABLE
Renumeration and Profitability” APPROACH

“Apply Scalable Design Thinking
Throughout The Process.”