Australia Post, the government owned postal service operating within Australia, is
expanding its business into insurance. Starting with car and later home insurance, Australia post will use its outlets and distribution network to launch its entry into the financial services sector.
The bid to enter new markets is not new for Australia Post, nor for postal services globally. Australian post offices already sell everything from children's books to printers. Other services include electronic bill payment, the taking of passport photos and soon, identity-proving. Australia Post cites other postal services globally that have made a successful entrance into the insurance sector.
With the rise of email and other forms of electronic fulfillment, traditional "snail" mail is no longer paying the bills.
Rather than growing new heads, I wonder if Australia Post and other postal services worldwide should consider innovation within their core business. Like the mainstream news media, music and content publishers, it is difficult to imagine a less proactive and more reactive approach to the opportunities - and the increased, agile competition - posed by the digital world.
Here are some ideas - off the cuff - for innovating in the postal industry in a valuable (and therefore monetisable) way.
Digitise the mail. Postal services largely missed the boat on electronic mail (you have to wonder how) but there is still is still ample opportunity to provide a gateway service to the digital world. Swiss Post has already established a service (
Swiss Postbox) that, for a fee, will scan the outside of your mail and provide you with an online interface to determine which items actually get delivered or scanned and delivered electronically. The rest - whether it is junk mail or letters from your local politician- gets usefully recycled.
This is win for all parties. The post company can digitise closer to the source and save distribution costs while it earns a (currently premium) fee in the process. The end user finds out about mail sooner and more securely, and can receive their mail with much greater flexibility in the storage and backup. Do not forget the environment; removing the environmental costs of distribution and redirecting mail in bulk quantities to recycling is beneficial there as well.
Virtualise the Address. I find it astounding to think that to send something to me you need to know my current physical address. I am still receiving mail for occupants of my house that have not lived here for 3 years. Their physical address has changed, but the hundreds of records held by companies about them have obviously not. When I go overseas in a few weeks I will have the same problem with my own mail. It is also a concern for privacy; I may want to allow a business to send mail to me, but do I have to disclose where I physically reside?
A virtual address would resemble a post office box address, but would be delivered not to a physical box but to the physical address on file or an electronic account if the mail service is digital. The virtual address could have a suburb like a post office address - this would form the basis of postage for the sender, with the recipient paying any additional amounts required to ship to a different post or zip code. The recipient could manage their physical address online, changing it for all of their future mail with a few clicks.
Despite the extreme convenience of this feature for consumers, businesses and even the wider economy will benefit as more mail reaches the intended recipient. Virtual addressing may begin at a premium price, but ultimately I believe it should become very low in price or free.
Sell registered email services. Email is in widespread use but is frequently abused. Phishing attacks and spam mail frequently spoof other mail senders and are so common that both mail clients and recipients need more ways the verify the actual sender. Postal services could offer registered email services at a low price (say, 1 cent per email) that use best practices for mail server authentication including reverse DNS servers, SPF records and signing with DKIM or DomainKeys.
Confidentiality in email is likewise hard to achieve with mass emailings, but postal services could also offer encryption gateways (PGP or otherwise) or even host confidential messages for users to access over secure (SSL/TLS) protocols. Such a service could also provide confirmation of the receipt of the message.
Host electronic forms. In Australia at least the semi-local Post Office is also a source and submission point of paper forms for various postal and government services. When written forms are received, they are painstakingly entered into computer systems (sometimes via optical character recognition, but many times manually). For consumers paper form submission often means lunchtime excursions to busy post offices with a long wait in line either to get the form or to submit it.
Electronic forms are not new. Adobe PDF supports them natively (ever wondered why the Adobe Reader installation was so huge?) and many web sites offer form and survey services. The biggest challenge for official forms is authentication - are you who you say you are?
Offering an electronic forms facility - first for postal services, later for other government sectors - would be a key convenience the postal service could offer. Best of all, offering electronic form submission would pay for itself in reducing the man power required at post offices.
These are just a few ideas, but the hopefully they demonstrate that postal services do not need to look outside their core business to find new revenue streams and in the process improve the service they provide to consumers. Rather than being victims of technology a company can choose innovation and instead be a leader of their industry. This requires re-examining many of the assumptions that underly the current business model and asking what the market actually wants.
The postal service is a good example of an industry that has barely changed in the last one hundred years but which will need a shake up to remain relevant in the new digital world. The moves by companies like Swiss Post seem a step in the right direction. There is more that can be done.