Canada Post losing ground, service reaches out for input
Drops in mail volume for Canada Post are set to continue hurting the service well into 2020, according to a new report. Companies utilizing address standardization software to reach Canadian consumers can enter into the discussion about the future of the Canada Post by staying up to date on the service's operational goals and go online to be part of an ongoing public forum sponsored by Canada Post.
"The Future of Postal Service in Canada" report by the Conference Board of Canada found recent declines in volume may cause an annual operating loss of $1 billion by 2020. Commissioned by Canada Post last year, the report reviewed the needs of Canadian households and businesses, projected how expectations may evolve within the next decade and determined a range of options for the service to remain self-sufficient. The report found ecommerce is helping Canada Post increase its postal volume, but the number of letters going through the service continues to decline.
David Stewart-Patterson, vice president of public policy on the board, said the report illustrates how Canada Post's operations should change to support the needs of Canadian consumers.
"Canadians recognize that the way they use mail is changing, but haven't yet fully understood how severely that is affecting Canada Post's business model," Stewart-Patterson said. "Canadians must consider what kind of postal service they really need in the years ahead."
The report suggested five ways for Canada Post to cut costs, but the most notable was eliminating door delivery for urban customers, which could result in savings of almost $576 million a year. According to the report, almost two-thirds of Canadians already receive their mail at centralized points and group mailboxes.
The Canada Post recently established an online public forum for Canadians to send in their thoughts about the service's future and what they would like to see. Companies using address verification software within direct mail campaigns can join the discussion by going online and watching for any future changes coming to the service.