The gloves are off, or should we say the letter has been delivered in Ofcom’s annual post monitoring report.
Ofcom is the regulator for the communications services and postal industry in the UK. Its annual post monitoring report has put the 2023-2024 period into focus.
In recent months, Locate2u has been keeping a close eye on the postal industry. Companies like Royal Mail, Yodel, and Evri have been making changes, like investing in electric vehicles, and drones trials, for example.
Customer service falls short in parcel delivery
The report shows satisfaction with parcel delivery is generally high, but customer service remains an area needing improvement. Here’s a breakdown:
- Low satisfaction with support: Only 44% of customers who reached out to a delivery company were satisfied with their contact experience. Complaint handling and issue resolution also scored low, with just 45% happy with staff interactions and 48% satisfied with how issues were resolved.
- Phone contact challenges: Over half (53%) of dissatisfied customers cited the lack of telephone support as a key frustration.
Performance varied significantly across providers. Amazon and DHL led in customer service satisfaction, while Evri and Yodel scored lower than average despite some improvements.
Disabled and limited-mobility customers faced additional challenges, with 71% encountering delivery issues compared to 63% of other customers.
Postal Services: A lifeline for staying connected
Despite the rise of digital communication, postal services remain a valued channel for many consumers.
- Essential communication: 64% of consumers consider postal services an important way to stay in touch with friends and family, though this has dropped from 75% two years ago.
- Used only when necessary: Half of residential consumers say they only use postal services when no alternative is available.
- Regular senders: About 72% of consumers have sent at least one item in the past month, a steady figure from last year.
- Always a need for post: 82% say there will always be items they need to send by post.
- A sense of connection: 56% would feel isolated without postal services, with older adults and residents in Scotland (especially the Highlands and Islands) feeling this most strongly.
Royal Mail missed delivery targets again
Royal Mail’s quality of service is falling short. In the 2023-24 period, the company’s service quality continued to lag behind set targets, with First Class deliveries meeting only 74.5% of the 93% target, a marginal improvement from 73.7% in 2022/23.
Second Class deliveries also underperformed, reaching 92.4% against a target of 98.5%, up slightly from 90.7% in the previous year.
Following this trend, an investigation was launched in May 2024 to review Royal Mail’s compliance with First and Second Class delivery targets, as delayed mail remains the most commonly reported issue, affecting 25% of residential users.
Delivery delays top customer complaints
In the year under review, Royal Mail struggled to meet delivery targets, with 45% of customers reporting issues with sending or receiving letters.
The main problems were delays (25%) and mis-delivered mail (19%). Among those who lodged complaints, 60% were satisfied with how their complaint was handled, and 56% were pleased with the resolution.
‘Green’ delivery matters, but price still rules
There has been an effort in recent months by postal services to go green. But how is sustainability fairing?
- Parcel sending habits: Four in ten consumers sent a parcel in the past month, with 54% using Royal Mail over the last year, but many also chose other providers.
- Sustainability matters, but not most: While sustainability influences choice, other factors remain more important for most consumers when selecting a parcel provider.
- Willing to wait for ‘green’ options: Nearly half (46%) would choose eco-friendly delivery, even if it took longer.
- Less willing to pay more: Only 35% would pay extra for environmentally sustainable delivery, showing limited appetite for added costs.
- Youth leading the ‘green’ charge: Younger consumers and those in higher socio-economic groups are more inclined toward paying for sustainable options.
Parcel satisfaction high, but delivery issues persist
Most consumers (78%) are satisfied with their parcel delivery services overall.
However, two-thirds (67%) reported problems in the past six months, including delays, misplacement, failed deliveries, or incorrect tracking details.
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
