Canadian post hit hard by drops in mail volume
Marketers using address validation software to send their direct mail marketing campaigns to Canadian clients might want to know the country's postal service lost money last year.
According to the Canada Post's 2012 Annual Report, the accelerated declines in mail volume are posing issues. In 2011, the drop rate was at 3.4 percent, while last year the agency saw that rate reach 6.4 percent, causing a 3.8 percent change year-over-year. In total, around 1 million fewer pieces of mail were delivered last year than in 2006 and 23.6 percent fewer mail pieces per address were delivered than in 2008. Even though many of the Canada Posts's other services are doing well, and parcels have increased in volume by 6.7 percent, however, the agency estimates large financial losses by the end of the year.
To counteract the decline in revenue, Canada Post has stopped wage increases and changed pension eligibility for new staff, among other cost-cutting measures it pursued. At the same time, the Canada Post is increasing its online retail network to better serve Canadians and any Americans sending direct mail through the service. The agency hopes that a rise in service options will make up for the decrease in the volume of mail.
The agency said in a statement that it will seek new opportunities to serve the Canadian public and adjust its labor needs accordingly.
"To remain financially self-sufficient, Canada Post must make more fundamental changes to transform its business," the agency said. "In doing so, it intends to continue to meet its public policy obligations, such as the need to serve every Canadian address, including those in rural and northern Canada."
Companies trying to reach Canadian consumers might want to invest in address validation software to make sure customers will receive marketing materials without incident.