Editorial: Royal Mail stance is no real shock

by Noelle McElhatton, editor, Marketing Direct, Marketing Direct 01-May-07

At first glance, Royal Mail's decision to pull its support of mailing house accreditation scheme QMP (see news, page 11) deservedly raises a few eyebrows. After all, the company still has a large monopoly on postal delivery in the UK and therefore, some would argue, still has a duty of care to support initiatives in direct marketing sectors that require quality standards.

But we really shouldn't be surprised that Royal Mail wants a pared-down
version of QMP that serves its own needs. The gloves are coming off as
the company feels the pressure of a competitive market and evaluates its

financial support of DM industry causes with a more ruthless eye.

Royal Mail's withdrawal from QMP follows the introduction last year of
pricing-in-proportion and its plans to introduce zonal pricing (see news
analysis, page 21). But the indignant reaction from some quarters to its
step-back from QMP begs the question: at what point will the DM industry
get real and stop expecting Royal Mail's former largesse to continue? We
should instead expect a further diminishing of Royal Mail's contribution
to DM causes as it prepares for the time when downstream access really
starts to hit its coffers.

Who'd have thought it? Rumours of UK contact centres' demise have been
somewhat exaggerated as the sector shows signs of surviving the damage
that an inflated Telephone Preference Service has inflicted. Marketing
Direct's annual survey of the telemarketing sector, which was held in
conjunction with sister title Marketing magazine (see feature, page 37),
reflects an industry that is restructuring and adapting to changing
market conditions. True, the pace of consolidation among suppliers
appears to have quickened and signs are that the players in this year's
league are engaged in a game of survival of the fittest.

But survive they will, as long as they stick to their chosen formula of
reducing their dependence on outbound telesales and a continued emphasis
on agent training.

Most of the top 10 suppliers in our survey are focused on in-bound
activity. At the same time, many have made huge efforts to convince
clients that cheapest, ie offshore, isn't necessarily best and that
investment in agent training is a win-win scenario for all
concerned.

That's because consumer irritation with silent calls is almost matched
by their disillusionment with overseas call centres - visit BBC Radio
1's forum about Powergen's decision last year to switch from Indian to
UK-based suppliers (www.bbc.co.uk/radio1/news/newsbeat) and witness the
frustration of consumers having to deal with poorly trained and no doubt
underpaid overseas agents.

It's all evidence that the UK call centre sector is doing something
right and could, ultimately, prove the doom merchants wrong.

noelle.mcelhatton@haymarket.com.