Lukasz Nowinski: easyPack 24/7: case study from Poland on last-mile delivery options
1. easyPack 24/7: case study from Poland
on last-mile delivery options
Łukasz Nowiński
Managing Director
InPost
2. Agenda
Company overview
How did we start?
Developing the service in Poland
Expansion to other countries
3. Listening to customers’ needs and
observing market trends
Distribution of Postal services Financial and insurance MVNO operator
unaddressed mail largest alternative postal
services
Services for Carrefour Mova
market leader in operator in Poland Offer for businesses and and new service Freem
distribution for supermarket
individuals launched in Autumn 2010
chains
Distribution of UDM in Automated parcel Logistics services
Ukraine terminals InFlavo
logistics support to Group’s
Services in over 300cities Sending and collecting Internet shops on
subsidiaries
parcels 24/ 7 Facebook
4. InPost – wavemaker from Poland
Listed on the Warsaw Stock Exchange
The largest private postal group
in Poland
World Mail Awards winner
Growth (2010),
Innovation (2011)
e-comerce (2011)
Business culture and Performance
reflected in earnings and recognised by
investors
2011
6. Year 2009
Growth potential for e-commerce in
poland
36.4% growth of e-commerce Wartość polskiego rynku e-commerce (w mln zł)
Sklepy internetowe Platformy aukcyjne
between 2008 / 2007 6480
4600 4530
3470
3000
7,000 active e-retailers 980 921
1300
1800 2000
152 180 328 410
48 60
2001 2002 2003 2004 2005 2006 2007 2008
6.9 mln Poles did online shopping
Bright future for e-commerce
globally
8. Year 2009
Parcel terminal answering needs
of customers
Important factors for customers: Decision to do it on
Speed of delivery our own
Low price
Easy ways for parcel collection
No focus on B2C customers
Bad quality postal services vs expensive
couriers
A few APT providers – all very expensive
9. Year 2011
420 machines in Poland
Number Max dimensions
Self-service pick-up points for Size
of boxes (in cm)
collecting and sending parcels
Size A 32 8 x 38 x 64 cm
SMS / email notification about the
Size B 32 19 x 38 x 64 cm
parcel in the machine
Size C 12 41 x 38 x 64 cm
User and producer of the machines
Machines already contracted to 9
countries: Estonia, Cyprus, Czech
Republic Lithuania, Latvia, Russia,
Slovakia, Spain, Ukraine
10. How it works
Additional functions of easyPack by InPost:
Credit card/cash acceptors
Returns based on barcodes
Sending of parcels directly from terminal
11. What we achieved in 2 years
420 machines in over 100 cities in Poland
8 countries contracted in 2011 … more to
come
Over 500 active e-retailers
New segments – MLM, return logistcs etc
Customer database:
>200.000 fans on Facebook
>300.000 customers used the service
(registered and non-registered users)
61% clients used easyPack 24/7 again
12. easyPack operating markets usage data
74% prefer easyPack vs
37.45% - collection between 18:00 – 8:00
courier delivery
51% parcels collected
within 6 hours
17 sec average time
needed to pick up a
parcel
97% of parcels
delivered next day
Source: CATI research 1Q 2011 Polish market, research sample 600 buyers, & own data
13. 77% of customers have easyPack
within 10km
Source: Own data collected from registered users
15. … We know how to make it work
Where to locate easyPack machines?
How to convince shops and business partners to offer the service?
How to attract customers?
How to track customers behaviour and stimulate frequency?
What may go wrong and how to avoid pitfals?
16. 16
What needs are satisfied?
Cheap and convenient delivery (Cheapest service – saving money)
But the most important are COMFORT and CONFIDENCE
Fastest option - 97% delivering day after posting
Availability - 24h access
Innovative service + modern solutions = unique experience
Comfort - „just when I want it and how I need it”
Security - Parcels are fully safe
No queues - saving time – average time of collecting a parcel is 17
seconds
18. 56% growth of easyPack deliveries
Paatal.pl customers soft roll out
56% growth of easyPack delivery after the
promotion (lack of materials for analysis before
the promotion- new shop)
During action percentage easyPack relative to
other delivery option is 18% and after action 23%.
Communication channels:
On-line activities: banners + subpage
E-mailings
Posts and graphics on facebook.com/paczkomaty
E-mailing statistics:
Database 97 463
Unique opens 18 499 – 18%
Unique click 274 – 0,2 %
Results:
over 127 participants received a special gift-
product
19. Groupon sales up to 97% products via easyPack!
Communication channels
Standard daily e-mailings of Groupon
On-line activities: banners + subpage
Groupon application for iPhone
Delivery options:
UPS
easyPack by InPost
Results:
Depending on the product that is offered
delivery option via easyPack goes from
37% up to 97%
Average share of deliveries to easyPack
75%
20. We do have clients and we ……………
make profit on it
The world’s most
chosen vendor in 2010
26-month Return on
Investment
4-month Time to market
22. „If I had to guess, social commerce is the next to
blow up” – Marc Zuckerberg, CEO of Facebook
Facebook Mobile
E-commerce
commerce commerce
E-shops on MVNO – free access
easyPack 24/7 Facebook to internet via phone
23. Thank you for your attention
visit our stand no 4073
Łukasz Nowiński
Managing Director