POL00458012
POL00458012
Purpose, Strategy and Growth
CEO catch-up
7 January 2020
POL00458012
POL00458012
Contents
Purpose
PSG update
Next steps
POL00458012
POL00458012
Recap: key purpose themes were observed across all stakeholders...
External Internal
@ POL colleagues view the brand
as the key source of trust,
customers the enduring
relationship of the post office,
Reliability (Quality of
Access
other themes with postmasters
B . — access rather is the dominant
Quality of service
Customers : Postmasters H Partners POL colleagues and postmasters their
! i relationship as the driving force
Trust Community Trust Trust Community is an
: : overwhelmingly top theme with
. 3] fl . [3] postmasters, and important for
Convenience Trust H Convenience Access partners but not present in top
' five for other groups
Makes tings acs} ! Care Quality of service Care ec : an
i onvenience is a dominan
! 3) theme amongst partners and
Consistency (quality I . . POL colleagues, and
of service) Quality of service Community Convenience consumers but secondary to
service)
theme
@.
POL00458012
POL00458012
Recap: ..leading to the overarching purpose principles for Post Office
What it means
How we will do this: short/medium term
We are dependable — customers know we will “always
be around”
Our staff and postmasters can be trusted
Our products and services are consistent, reliable and of
good quality and don’t offer any surprises
Our postmasters build deep relationships with the
members of the communities they serve
We choose high quality suppliers and partners
We run a sustainable business that adapts to the
Easy to access
Everyone has access to us: we are convenient to reach
Our products and services are simple and easy to use
Large physical network of branch locations maintained
across the country
Strong online/omni offer across services
Hours that match customer working and lifestyles
Everyday
services
Vital services for consumers and core products for small
business
Daily “life admin”
These services make our customers’ lives easier
Cash and banking — for consumers and SMEs
Mails and parcels — letters, PUDO, etc.
Bill pay and government services
Simple FS products
What is not included:
* Community: Purpose statement has focus on the enduring benefits needed by the community rather than community itself. This reflects the
information that community itself is recognised by consumers, but not driving behaviour. Serving the community is an outcome of delivering our
purpose.
® Care: We will understand and care about our consumers needs in order to purpose promises of trust, ease, access and to provide the right
services: the areas that our consumers are asking for
S dren vi Resity,
@.
POL00458012
POL00458012
Emerging Post Office purpose statement PRELIMINARY
Making it easy to access everyday services you can trust
@.
POL00458012
POL00458012
DP aLUMig
a) Sumpter .
yyivi tHe Mert wre so _ 7 Soy btu buon
. fun > Tan,
Making it easy to access everyday services you can trust > ERECIMINARY
This means we will.. Qala g
Convenient locations, convenient acgeSs Q_ Reliably trustworthy services and products
Make customers across the UK Ky
lives easier by
promising... & An always “easy” experience X
nWennw
a In store services needed by communities Q_ Reliable and trustworthy products for
Geen our Post across the UK 27 consumers and SMEs
asters
BisHagier ©, Support to make access a’ d_care’easy: vy
Wa) simple products, simple prosesses
a In store, everyday services needed by QO Reliably trustworthy services and products
KY
Partner with customers across the UK
retailers to offer... Support to make access and care easy:
& simple products, simple processes
Deliver ie Services needed by communities across Q_ Reliable and trustworthy products for
Government the UK K27 consumers and SMEs
Priorities by
delivering...
@.
POL00458012
POL00458012
Contents
Purpose
PSG update
Next steps
POL00458012
POL00458012
We are well underway with our engagement deliverables, but still have more work to do
What we have achieved so far working with the POL team
What we aim to accomplish within the next 5 weeks
Purpose &
Strategy
Org
Provided external market views on the Mails & Parcels, Financial Services, Cash &
Banking and Identity markets, as well as on potential adjacencies
Designed and conducted a customer insight survey, analysed the results and fed
insights into relevant PSG workstreams
Analysed product and channel profitability
Ideated a long list of Big Bets, quantified their financials and feasibility, short-
listed the bests and compiled them in potential Big Bet portfolios of sequenced
initiatives
Gathered perspectives on the Post Office Purpose from internal and external
stakeholders, identified emerging commercial and social purpose themes and
crystallised into draft purpose statements
Started bringing together all the above in a future Post Office strategy that
prioritises Parcels and Cash & Banking / Financial Services as the two main
Getto engines
= Finalise Big Bet portfolio
* Integrate Big Bet portfolio into the 5 year financial plan
= Finalise Purpose statement and plan to embed into all
relevant dimensions of the Post Office
= Finalise Customer Insight survey analysis
= Refine and syndicate the articulation of the future
strategy, and implications on what to do and not to do
= Draw a digital & analytics use case value map
Conducted an oe -wide OHI survey, analysed the results and developed
emerging recommendations for interventions alongside Leadership Counsel
Build a detailed organisational baseline of the Product & Serer, functions
Tech
Syndication
Identified the most pressing ees issue to solve
perecbed a oa to address Horizon pain points
= NIA
Engaged 30+ POL ay 100+ Postmasters in person (through * ‘curry nights"
and other activities) and ~900 online (through a Postmaster survey), 3 multiples and
other key external stakeholders (BEIS, UKGI...)
= Align findings and recommendations with UKGI, BEIS,
Board and other key stakeholders
" Define the asks of HMG
@.
POL00458012
POL00458012
We will continue working closely with POL colleagues to achieve those deliverables
Topic POL colleagues we have worked closely with Topic POL colleagues we have worked closely with
- = Mark Siviter = Nick Beal
Malls sinarce = Tom Wasilewski = Amanda Jones
—— <i vacate = Amber Kelly
Insurance * Ed Dutton * Andy Kingham
POT PET pilatiataindicit ult Didi were = “ = Martine Munby
"Nigel Bascombe * Karl Oliver
= Amanda Jones = Rina Patel
( = " Tracy Marshall
Reataghgict, Male o Cathy Mayor Area Managers and Regional Managers:
+ Julie Thomas Postmaster * Victoria Allsop
= Lisa Watkins experience = Graeme Bower
-—- a a "Nick Carroll
a . = Chrysanthy Pispinis = Adam France
Gap senieay * Kathryn Sherratt = Shaun Kerrison
a ~ ~ eee = Jason Lawrence
Cash & Banking * Martin Kearsley = Deb Mickleborough
= — : _ = Mick Norman
identity = Martin Edwards: = Kelli Organ
. = coon . _ = Andy Parker
= Benjamin Cooke = Cristina Scaramella
= Shikha Hornsey os
= Tony Jowett
= Alistair Roman . i
Teese + Jeff Smyth pss = Deve Jerking
= Lie Lie Sung-Morarji
= Gary Walker — oe
= Rob Wilkins
— = — — = Mick Di Stazio
* Lisa Cherry = Andrew Ellis
= Jack Foden Customer insights * Keith Maple
OHI = Amber Kelly = Ruth Moyer
= Isabella Liu » Emma Springham
Ceri Price .
COMMERCIAL IN CONFIDENCE 9
POL00458012
POL00458012
We engaged a range of stakeholders outside the Post Office to understand attitudes
towards the organisation’s purpose
Focus Stakeholder Initiative’ Detail Reach
Consumer research Qualitative and scaled quantitative insights into consumer sentiment, 4,000+ consumers, ~1000
iGonsuniare! needs, preferences SMEs
SMEs Social media buzz Understand tone/ sentiment towards POL through social media and online 4,700+ social comments
analytics
“Curry nights” focus Interactive sessions around the country to hear directly from postmasters 7 curry nights
groups 90 postmasters
External Postmaster survey Scaled quantitative and qualitative insights from an email list of ~6k 890 postmasters?
Post- postmasters
mesiers NFSP purpose Interactive session to hear NFSP’s perception and input on POL’s purpose 7 board members
workshop
High performing one- In-depth personal interviews with high performing postmasters from 5 postmasters
on-ones around the country
Pails Multiples partners Interactive sessions with partners’ leadership (e.g., Coop, WHSmith) to 3 partners
workshops hear perception and input on POL’s purpose
1 Initiatives and full results are detailed in the appendix.
2.890 total responses; 740 full, 150 partial; 6,000 sent option to participate
3 1,770 employees represents a 74% response rate across the organisation (excluding DMBs) @
10
POL00458012
POL00458012
REMINDER: Meetings in January, by date and topic
Jan
Date 06 07 08 09 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 31
A A A A
Board Meeting Meeting Board Customers
wi Tim w/ Tom Cooper papers due Purpose
Parker (TBC) Big Bets & Financials
* Technology
General update
A A A
Big Bets = Purpose statements = Purpose
Sr CUP) * Big Bets & financials communication
* Customer survey: SME * Close off on Bets
+ Asks from HMG & Financials
A
C
Leadership council OMG Seed COR
POL00458012
POL00458012
Quick points to address
1. Technology
" Site visit on the 23": confirm date and attendees
= FJ meeting and contract
* Meeting with BranchHub team member
2. CMO role moving forward
3. Amendments to PSG engagement contract
" McKinsey to work with Dan to ensure engagement contract reflect latest
conversations on prioritised deliverables
4. NFSP
* Upcoming Jan meeting: confirm attendees
5. Mails contract & strategy
POL00458012
POL00458012
Contents
Purpose
PSG update
Next steps
POL00458012
POL00458012
Next steps
* Session this afternoon with GE sub-group: Focus on Big Bet portfolio review
= Consumer Insight survey: Finalise SME result analysis
* Purpose: Start planning on how to embed into all relevant dimensions of the Post Office
POL00458012
POL00458012
Backup
We engaged a range of stak
POL00458012
POL00458012
eholders across the Post Office to understand attitudes
. . ’
towards the organisation’s purpose
Focus Stakeholder Initiative’ Detail Reach (>)
Consumer Qualitative and scaled quantitative insights into consumer 4,000+ consumers i
Consu- esearch sentiment, needs, preferences
mers/ sion = oe ells NSE an .
SMEs Social media buzz Understand tone/ sentiment towards POL through social 4,700+ social Qualitative ata:
analytics media and online comments " Rich insights about user
oe caneitahlsthi os s behaviours
“Curry nights” Interactive sessions around the country to hear directly from 7 curry nights " Detailed understanding
sceue groupe ___posimasters wn 0 postmastons of the postmaster
Postmaster survey Scaled quantitative and qualitative insights from an email list 890 postmasters? epouence)
Post. of ~6k postmasters = Powerful quotes and
———s a noes, ee, ee eee 7 — personal stories
masters FSP purpose Interactive session to hear NFSP’s Perception and input on 7 board members
workshop POL's purpose I
eeairinta a re “pons I Quantitative data:
High performing In-depth personal interviews with high performing 5 postmasters = Top and bottom
_one-on-ones _ _Postmasters from around the countrys . ee 7 . performing purpose
Fables Multiples partners Interactive sessions with partners’ leadership (e, ., Coop, 3 partners Statement themes
workshops WHSnith) to hear perception and in ut on POL’s purpose * Ranked and rated draft
WIN cade Loadorshin coor enna Purpose statements
Leader- Leadership council Interactive session to hear leadership's views on Perception 35+ people
i ; ship Purpose workshop _ fro; 'y Stakeholders and thoughts on POL’s Purpose
ernal antennae TO OM elated en
Employ- OHI survey, A purpose-related question on the OHI survey to gather 1,770 employees?
ees Purpose question scaled insights from entire employee population and DMBs 500+ DMBs
1 Initiatives and full results are detailed in the appendix.
2 890 total responses; 740 full, 150 Partial; 6,000 sent option to Participate.
3 1,770 employees represents a 74% response rate across the organisation (excluding DMBs)
@.
POL00458012
POL00458012
1 Trust, convenience and consistency are all Critical drivers for
Parcels (sent and
received) usage and convenience, along with habit
Drivers of Drivers of
Consideration NPS
N= 1,609
Drivers are derived based on the providers
users consider and who they score highly
for NPS respectively. These are indicators
for usage/potential for ‘switching and of
loyalty
Makes me fee! hrough them
Top 5
@ Trust and consistency are critical drivers
It is easy to drop off the parcel ith them
Easy of use and convenience also rank
highly
! can easily talk with human being if necessary
Is easy to deal with
Importantly for purpose, community is not a
top driver of either metric
& Low scores for web and digital service is
Have short queues in branches potentially down to limited provision: these
are not yet offered at the scale and quality
Has useful technology that helps me get in out and out Has useful tech that helps get in/out of branch quickly to influence behavior
of branch quickly (e.g. self-service machine)
Offers to print our label for me in branch
Has a great loyalty scheme
Has a great loyalty scheme
Offers collection from home Offers collection from home
POL00458012
POL00458012
1 And the Post Office currently scores well vs. competition for these metrics
Drivers
Is a brand I have been using forever _
1s a brand I trust
{s for people like me 1
Is easy to deal with
Plays a role in my community that i value
Category Customers’ perception of Post Office performance Parcels*
Reputation
9
loyal
Offers wide range of services that [need/use
Delivers parcels quickly
‘Willleave parcels in safe place
Always delivers parcels without damage
‘Always delivers parcels on time
vest prices for sending parcels
Has branch close to my home/otfice
0,10 0,18 0,20 0,25 0,30 0,35 0,40 0,45 0,50 0,55 0,60 0,65 0,70 0,75 0,80 0,85 0,90
1 Question worded: Please indicate how much you agree or disagree with the statements below, aboutt the following providers (Strongly disagree to Strongly agree)
Includes participants’ perception scores for both parcels sent and parcels received
Top 5 driver of consideration or NPS
Wl Post Office N= 760
§® Max competitor (of Hermes, Collect +, UK mail, DPD, Parcel Force) N= 342
= Within parcels, Post Office performs
strongly relative to other providers when
considered across all customers:
@ Reputation: with real strength in
trust, relevance, easy to deal with
and habit
Service is also comparable with the
best of the competition across
many metrics
Convenient location is a huge
strength
©
@
= Royal Mail not included in the
competitor score because customers’
perceptions of POL and Royal Mail were
very closely aligned with both
performing similarly vs other
competitors
POL00458012
POL00458012
5 Four drivers of consideration feature strongly across FS products: (1) perceived
expertise, (2) price — rates and incentives, (3) making services easy (4) brand habit
(i Expertise [J Rate [lJ Making services easier J Habit
Travel
Parcels" nexeo INSurance? , Credit cards veao Personalloans — ,.,,, Savings -«, Investments ree
s a brand I have been s a brand Has a great loyalty
ising forever S reve using fo scheme
Has a branch close to my Is for people like me expel late Grapallliralet Is an expert in the
home/office e category
© Makes me feel secure Gives me the confidence I Makes m ng es managing Offers wide range of Makes managing my
2 sending in parcels will be covered financially financ
I
services that I need/use
finances easier
a ae Allewsiyou ta getiniand Treats me like a valued Plays a role in my
customer community that I value
I can easily talk with
Is an expert in the Is an expert in the a eeaeine
human being if necessary easy to understand category category pecbiely
Offers products that are
Website is easy to Is an expert in the Offers products that Has clean and well-cared Has clean and well-cared
navigate and use category d
sy to understand
Has useful tech that helps
for branches for branches get in/out of branch quickly
Has tech that helps me get ' Staff are very Has a great loyalty Has clean and well cared
2 in/out of branch quickly Bas relgcenice ice) titer nee] WP ko it) knowledgeable scheme for branches
i} Itis easy to use way of Has useful tech that helps Is reliable - it doesn’t make Allows you to get in and Offers consistent exper- \s reliable - it doesn't make
8 buying postage digitally get in/out of branch quickly mistakes out of branch quickly ience online/in branch mistakes
Has a great loyalty Going to their branches is
Has clean and well-cared Is can easily talk with
human being if necessary
scheme
Delivers consistently good
an enjoyable experience
service
I can easily talk with
for branches human being if necessary
Offers collection from Have short queues in
: Allows you to get in and
ee panes Is easy to deal with
out of a branch quickly
Note: Drivers of consideration are calculated using t-test statistics with conversion from familiarity to consideration being a dependent variable and brand attributes being independent variable
Excludes participants who had not have a choice on which service provider to use when they last sent/received a parcel. Scoring weighted 92% towards parcels — sent, and ~8% towards parcels — received @
2. Drivers of purchase shown, rather than drivers of consideration as such a low consideration category that features lacked statistical significance 19
Has convenient opening
hours.
POL00458012
POL00458012
5 Price/value and consistency/reliability are the top drivers of NPS for FS products
I Consistency/reliability EE Rate/Value
Travel
Parcels! vero INSurance nes Credit cards eas Personal loans news Savings n-so INVestments me
igectaR Gee Delivers consistently good Makes managing my Delivers consistently good Treats me like a valued od value fo
service finances easier ervice customer mone
tston people like me 's reliable - it doesn't make Treats me like a valued Détivers consistently good !s an expert in the
mistakes customer service category
» Makes me feel secure Offers products with no " 's reliable - it doesn't make Makes managing my
& sending parcels with them hidden payments/charges 's for people like me mistakes finances easier 's for people like me
& . 5
Staff are always friendly Detivers consistently good Delivers consistently good
Is easy to deal with and Relea sais 's a brand I trust aes
Del consistently good a Is an expert in the Makes managing my i
I Ne lik
Is easy to deal with caiesay ietescece, is for people like me
Have short queues in Plays a role in my Have short queues in Offers products that are Their website is easy to
branches community that I value
Has branch close to my
branches easy to understand navigate and use
Has useful tech that helps
home/office
Is a brand I have been Offers products that are Has clean and well-cared Has branch close to my Their website is easy to
Fs get in/out of branch quickly using forever easy to understand for branches home/office navigate and use
2° Offers to print our label for Has convenient opening Plays a role in my Allows you to get in and I can easily talk with Has a convenient and
= me in branch hours community that I value out of branch quickly human being if necessary user-friendly mobile app
a Has a great loyalty Has branch close to my
Has clean and well-cared
for branches
Has useful tech that helps
scheme
home/office Get in/out of branch quickly
Has convenient opening
Has convenient opening
hours.
hours
Offers collection from
Has a great loyalty
home
Has branch close to my
scheme
Has branch close to my
home/office
Offers a variety of ways I
home/office
Has useful tech that helps
can get in touch
get in/out of branch quickly
Note: Drivers of consideration are calculated Using t-test statistics with conversion from familiarity to Consideration being a dependent variable and brand attributes being independent variable
+ Excludes participants who had not have a choice on which Service provider to use when they last sent/received a Parcel. Scoring weighted 92% towards parcels — sent, and ~8% towards parcels — received 20
POL00458012
POL00458012
many metrics
Top 5 driver of purchase or NPS, travel insurance
Category Drivers Customers’ perception of Post Office performance ~ Travel Insurance B Post Office N= 426
\sabrandinuet TS ____ Sustomers' pere SS penormance=Travel insurance
's a brand trust ,
Gieinaeena i tbe edit = 2 z e Competitor Average
Plays a role in my community that I value : © Max competitor (Admiral, Aviva, Tesco, Sainsburys, Churchill)
's easy to deal with Z N=4s7
's for people ike me 2
{sa brand I have been using forever
Treats me like a valued customer
" On the top 5 drivers of purchase, the
POL falls between the average and
max
(A) POL underperforms the competitor
average across many measures of
assortment — Specifically at being an
expert in the category and having a
great loyalty scheme
ervices that I can only get there
= ®pot performs much stronger than the
asy to navigate - - a - aaa next strongest competitor in terms of
makes every dey tasks easier having convenient branch locations
close to customers’ homes/
Has branch close to my home/office
BE Has convenient opening hours
Offers consistent experience oni
POL00458012
POL00458012
6 However, it is more mixed on credit cards and loans, struggling with perceived
expertise, ease of use and rate Perception Top 5 driver of consideration and NPS, loans &
credit cards
Category i Customers’ perception of performance in Credit cards and Personal Loans* Post Office nee
a 3. - a
= a © Competitor Avg w= 906
Pays a roe in my community that = z © Max Competitor (NatWest, Barclays, =353
{5 for people ike me Tescos, Sainsbury's, Lloyds)
‘Treats me like a valued customer
1s a brand I have been using forever
1 tak with human being i necessary ~ > * POL has more mixed performance
Sia a ahays nay and in credit cards and loans:
! , ;
Pe peepemitans “i ® POL does well in brand
‘Aways has staff availble inthe branchvcallcantre to help me cuicky attributes, service, and overall
{s reliable - it doesn't make mistakes value for money
fers a variety of ways I can getn touch (eg caer, ve chet . .
ismvespetintecaeges mee cone tect . © POL struggled with perception
yalty of expertise, perception of
that are easy to understand -
tere wide erge hacer — = - - - : rates, and ability to make
finances easier. This may be
because...
© POL performs badly across all
online drivers under
“convenience/ease of use”
Offers products with no hidden paymentscharges -
Offers good value for money
onsite experience onine adn the branch
fs moder and uptodate
Going to their branches i an enjoyable experience
Have short queues in branches
1 Q: Please indicate how much you agree or disagree with the statements below, about the following providers. Top 2 box - % of respondents n> agreelstrongly ie: 22
POL00458012
POL00458012
Category Drivers
Customers’ perception of pert ‘on Savings and Investments! ; i
aba Se perception of perfomance on Savings and SNe Top § driver of consideration or NPS, savings and
- ‘ = investments
Plays a roe in my communi - - esky aw
Is easy to deal with ("~"---<-. . Post Office hesry
1s for people like me © Competitor Avg =1,008
's a brand I have been using forever © Max Competitor (NatWest, Barclays, Tescos, Sainsbury's, Lloyds)
Treats me like a valued customer N= 306
a _ -_— —
I can easily tak with human being t necessary
ae mmngpoe ; ; i ; I ® Po. largely performs well on trust
Delivers consistenty good service a rr Sera 1 and community...
ae arma he banvealcoweie heb ne ay ‘+¢—___ A ee
Isreal - it doesnt make miners (B) ® ... butless SO on personal
nee ety of way an getin och (9 cl-cone
pepper ae ee Ts a 5 Raia relevance
Has a great loyalty scheme I are
SS _ —= (B) However, it is below average on
Otlers wide range of services ‘ a 3 almost all service drivers,
fe expertise and making finances
€asier, and being modern and up-
to-date
y that helps 27d out of branch a Z = aw : 7 -9 6 As with Credit cards, online
Sree weeny nobis wnhsatsenre
elias Ofer rods with no hissenpamentsenese Performance perceptions are low
Offers good value for money
— Has the best interest rates = ne
Has
Has Convenient opening hours
Has lean and welicaredor ranches
monet merece andi arch
Is moder and up to date i i -
oi their branches isan erjoyabe experience
Have short queues in branches 7
020 “9, 038 040 045 050 O55 2.60 065 070
1 Q: Please indicate how much you agree or disagree with the Statements below, about the following provid P 2 box - % of respondents whe = 9-.. gly Sore 23
POL00458012
POL00458012
Themes of trust, community, and conve
nience topped Surveys and quantitative
analyses with Postmasters
™ Top and bottom 5 Performing
t themes on survey
Postmaster survey (N=890)
Senin oe a =e
I Serving our communities T 35 G Convenient access
Atrusted brand} =] Trusted
a - tus
I Part of the social fabric in our Communities ! Connecting people
I Care for our customers _ et Community —
(Consistent, friendly service { Consistent
Access for everyone eres i Everyday Pe cs
Make our customers’ lives easier I I Helping businesses grow
_ Best network
ity Products and services.
‘ Enabling lives
The UK's best network
Connecting people
Presence at every comer
Everything our customers need —_
Breadth of essential products
:
G
I
it » =
eat oo ay
1 Enabling lives and businesses to move forwafd 166 Serving our communities
Value for pag tO move forwatd a
I Value for money
a Middle 10 ranked themes -
a v— 1 — Se ree =
Helping businesses grow I Moving the UK forward ee
Ping busines gow —— ———_____ Re
I Convenient online presence I Helping business . i
Noe Presence
‘Moving the UK forward 7
Access for everyone _ a in
1 Survey question asked respondents to select top and bottom themes from a list of 48, Themes that received lropped. Product-specific themes were excluded
from top and bottom five (e.9., "All of Our customers parcels needs") for a Product-agnostic and future-proof, Purpose statement.
2 Themes presented during exercises at Curry nights with postmasters were modified mid w:
B, the themes matched the th
ay through the engagement based on earlier feedback and to test new/ different themes. In version
lemes presented in the Postmasters ‘survey,
POL00458012
POL00458012
Detail What we heard
Postmasters have strong « View themselves as an integral part of the communities they serve
relationship with community ff Fiercely dedicated to their job and comi
Positive [Femmes .
‘A Sentiments
with broad
agreement
mitted to local community
Cash and banking services
= Banks Closing high street brat
are increasingly important " Flexible cas}
“Trust is Critical. Everyone uses us
because they trust us.”
usiness to the Post Office
'ssary in some areas
inches is bringing more bi
+h access still nece:
Demand for convenient
Products and services
“Most of the banks around us have
closed... Lloyds, Barclays; they’re all
Drop and go, banking services offer convenience to ecol
" More Opportunities to deli
~ " si gone. The banking services and
mmerce sellers and SMBs access to cash are a lifeline to
very New products and Convenient services to Customers People.”
Inconsistent services Rete "Internal branch format classifications are not known
branches is con:
to end customers
Online branch finder ne
Negative
B Sentiments
with broad
agreement
eds improvement for a better
stomer awareness is low
“At least one
est in with a bios
Person per week comes
metric form, but we don’t
do that service.”
Quality of some third party
Services is poor
Poor quality reflects negatively on the Post Office brand and Postmasters
Lack of dedicated in-branch Support is a paint point for postmasters
Infrastructure for
. “Three month:
Postmasters is not robust
's in I had lost close to
£1,000. I alm
lost gave up on the Post
Office.”
- ‘The SSK takes up too much Space,
Digital and automation Customer experience 5 Es
reception widely mixed ™ ne and I lose the Opportunity to upsell.
roposition is not clear to some Postmaster:
opics j ie aS: Sellen «I still fee! proud of providing the Post
ares Postmaster Priority shifting " Postmasters have differing views on priority of Post Office vs their retail business, : te
Cc itive of ff toward retail focus with a trend toward the latter and expect POL to drive footfall
pinion = = Ruralp
Office service, but it’s not sustainable,
I make more sell; g a Mars bar than
especially those operating outreach bran from someone making a £5k deposit.”
Most important role for the Post Office
Urban Postmasters expect convenience and fast service for their
demand innovative products.
Rural Postmasters,
Vital services as the
Regional needs vary ur riapenarae
ches, view access to
“We're going to get left behind if we
don't innovate.”
; McKinsey analysis @ 25
POL00458012
POL00458012
Strategic multiples Partners’ high-level] view on POL Purpose
Strong alignment with Post Office I" Feel POL Plays an important role
' POL is an anchor on the high
community mission I in Society I Street; valuable footfall driver
" Trusted brand with a long I " Recognise face-to-face po. Very bullish On automation as a
heritage I interactions are vital to i Means to maintain POL Viability
Maintaining a functioning, healthy
" Cash and banking business, Growth in Online returns and
Online returns very strong business banking Services
. Opportunity to simplify Product fo. Unsure about relevance of POL. Post Office adds Complexity; cash
and service Offering I in the future — Operating in I on hand adds risk
" Significant management j Structurally declining markets ba Living wage ang rising costs
Overhead with Post Office -* Do not see value in POL approach I making PO unsustainable
" Biggest threat to POLismoving I to automation * Want to expand PUDO, but
too slowly; inability to innovate po Training burden is Significant / exclusivity is a burden
SOURCE: Notes from direct Conversations with multiples partners’ leadership; McKinsey analysis @ 26
OHI analysis: Purpose theme ranking exercise!
— bend
Fi A trusted brand
[Access fora
{—__Alllour customers"
ing the best deals ——__
Bring the best eae to our La lind
All Our customers’ communication needs
I Proudly British =
1 Present at very corner
ing technology to oar =—<——_.
I Bring technology to Our customers
POL00458012
POL00458012
= Top and bottom 5
Performing content
POL00458012
POL00458012
Word and phrase cloud!
Free text responses: top unigrams
customer
wo services
Hy online Presence needs
£ banking Provide Services community
5 i
2 stop shoptrusted bran Pathe
=] 1 . = excellent Customer service ;
3 Dusiness Service _financial'services pide,
ao - business
& .,. Products igh street people
4 . brand
o banking
‘Products services =
S% staff
S a il
one stop shop ie
f competitive
‘s 2 SiOM< Ss musta
Customers pivice ell
9cal communities
com
[=e Postmasters
- § Servi CES customer iscah
8 brani CUStomer SEIVICE .@ Phisical presence support
o brand ‘2 value money
Ss online ONe stop need 8 ea Py
if
Service customers is digit 68
Community Presence high street focus 67
Services customers help (3165