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| This ad by Doddle keys in on Customer frustration on being out when a courier delivers |
City Link the parcel delivery business called in
administrators Ernst and Young (EY) on 24 December, but an announcement was not
made to the media until Christmas Day.
Allegedly a number of employees found out first through the
media. Some received their email from the company on Christmas Day.
Company's often boast how people are the most important
resource in a business. Yet in these circumstances it appears to not have been
played that way.
As for the people known as customers, they were naturally concerned about the goods that
City Link were due to deliver for them.
The Independent Newspaper quoted Mr Sumner-Rivers the founder of Parcel Hero who broker between
businesses
"no further deliveries will be
made" but "depots will open again on Monday for customers to collect
the estimated one million parcels stuck in its network".
He said City Link’s closure could have a major impact on the UK
parcel market. They suggest that there were now "serious concerns as to
how the carriers left in the market are going to be able to absorb the
estimated 76 million additional parcels City Link delivered each year".
"The companies will all require immediate service,
which will put a huge burden on every carrier's infrastructure, from the sales
department right through the network to the delivery couriers at the other
end," Mr Sumner-Rivers added.
This seems to contradict comments made by the administrators of an" over crowded market"
Pick Up and collect service
The administrators have advised customers who had handed over
parcels to City Link on Christmas Eve should go to a depot to retrieve them on
or after December 29.
More to this than meets the
eye
Rivals Royal Mail and DX had been approached about a rescue
of City Link.
Royal Mail were apparently interested in the John Lewis and
Mothercare contracts, DX were after a more comprehensive deal involving City
Link’s assets and are tipped to be active in parts of the company in
administration.
On City Link's website they also quote clients such as
On City Link's website they also quote clients such as
Rochford Garden Machinery, Van Duuren Districentres
Footlocker, IMG distribution, and MDA
Beware the perils of the “SEND”
button
In a Sky News report Saturday 27th Dec 2014 “sources
close to the situation” pointed to an email sent by one RMT official to members
on Christmas Eve which said - inaccurately - that the company had already
called in administrators that morning.
"This led to increasing pressure on the business and
given the level of rumour [there was a] risk of creditor action and thus the
company [had to be placed] into administration to give it protection,"
said an insider
Despite the recent explosion in the growth of online
shopping, the delivery sector is beset by excess capacity, with companies such
as Amazon developing their own delivery services
PEOPLE are one of the 7 Ps of a modern marketing mix . They are your employees that execute your service. From a marketing perspective this largely concerns the manner and skill in which they do so. Where a service is perceived as a commodity the People who perform the service offer are the differentiator.
Worthy as this is in theory PEOPLE can be looked over in
the toughest times of a business . The news of how City Link apparently broke
the news of there going into administration seems to indicate this. Although the message was apparently inaccurately relayed by an RMT member.
Certainly the breaking of the news on Christmas Eve seems to
raise questions of the decision from an emotional as well as rational standpoint.
The request by the RMT Union for talks with Business Minister Vince cable will
ensure that the whole business will become prominent on the news pages for a
few more days.
Clearly the business has assets like its properties but what
of the human assets it has? Are there lessons for us in the Sales and Marketing discipline?
Let’s just review the significance of PEOPLE in the
marketing mix
Anyone who comes into contact with your customers will make
an impression. This can have a deep effect; which can be positive or negative
on customer satisfaction.
The reputation of your brand rests in your people’s hands
from top to bottom. They must be appropriately trained, well motivated and the
right mental attitude.
Not all are suited to this kind of work. ( both at the customer front line as well as in the boardroom)
Many customers e.g. customers or end user parcel recipients don't really
separate in their mind the product from the service provided by your staff. Even for City link for example
subcontractor van driver will be seen as the service even though to the business they may view sub contractors as a money saving outsource solution. This shows the importance
of your people in a business.
The level of aftercare support and advice provided by your
business is also one way of adding value to your offer which can become
important as people use your service more and more.
The Chartered Institute of Marketing CIM suggests that we should regularly look at the products
that render the highest percentage of sales and consider whether the
relationship has become complacent. They ask whether there are opportunities for
enhanced support that could be employed without too much cost.
In the parcels’ market one of the frustrations of recipients
is the delivery of a note explaining an attempt to deliver and asking the
recipient to come and collect from a depot or request a new time to deliver.
Doddle have seen an opportunity here where deliveries can be
sent to a more convenient location such as a railway station where a commuter recipient
can say pick up their parcel after work.
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| Doddle's promotion at Waterloo Station December 2014 |
Time will tell
The City Link story will run for a few days up to the new year 2015
I noticed on the website under the announcement of the appointment of the EY administrators some sentences in very very small print. This might interest those concerned about Data Protection and Personal information. I have printed the words in a larger and more readable font
The affairs, business and property of City Link Limited are
being managed by the Joint Administrators, R H Kelly, C G J King and T Lukic,
who act as agents of City Link Limited only and without personal liability.
We may collect, use, transfer, store or otherwise process
(collectively, “Process”) information that can be linked to specific
individuals (“Personal Data”). We may Process Personal Data in various
jurisdictions in accordance with applicable law and professional regulations
including (without limitation) the Data Protection Act 1998.
This is probably legalise but to ordinary mortals the use of "may" has ambiguous overtones
May can mean
a)
Have permission to i..e. can , can, could , might
b)
Possibly i.e .
could , might
c)
In subjunctive I..e. might
There is a pecking order in insolvency some people ( creditors) are more equal than others as George Orwel said of the animals of Animal Farm.
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