21 August 2001

Triangle’s parcels survey confirms consolidation of the UK express distribution sector

Following the recent consolidation of the UK express industry through the closure of Fastrack, Panic Link and Lynx’s Red Star service, Triangle’s latest survey into the views and opinions of the industry’s customers has shown that major users are increasingly looking for individual carriers to take care of all their UK express parcels delivery needs.

More than half the sample (54%) interviewed for Triangle’s “UK Domestic Parcels Distribution Survey”, had used just one express parcels carrier for UK delivery over the last twelve months, representing an increase of 12% over last year’s result.  In spite of this, results also confirm that the UK market remains very fragmented with a large number of carriers vying for the business of a limited number of customers.  With 15 different carriers having been used over the last 12 months by at least 5% of the sample group, it is little surprise that customers are demanding improvements in quality and customer service, and a more complete range of services.

Now in its third phase, “The UK Domestic Parcels Distribution Survey” is a survey of more than 300 key users of express parcels services, each sending a minimum of 100 parcels a month to UK addresses.  By interviewing in depth and at the appropriate level, Triangle has been able to ascertain not only data pertaining to the patterns of usage of express parcels carriers, but also customer perceptions of the levels of performance of the carriers they choose to use.

The fact that different customers have different requirements of their express carriers provides opportunity for service differentiation between competing parcels companies.  Indeed, the survey found that the most widely used carriers were not necessarily the most reliable or customer oriented and that the companies whose users rated them highest for service or image were not perceived to be the cheapest.

Given the very high investment required to acquire new customers, it is obviously of key importance for parcels carriers to hold on to these won accounts.  To investigate this Triangle specifically asked the sample about their decisions to stop using express carriers.  Overall, 17% of respondents had deliberately stopped using one or more carriers in the last year and the average customer churn for individual carriers was found to be 12%.

Reliability issues were discovered to be the cause of most of these defections although the survey also identified that one in three users would change carrier to take advantage of a reduction in price of 15% or less.

The UK Domestic Parcels Distribution Survey is available to purchase as an 85 page report in paper format.  Using its sophisticated data analysis tools and drawing on two previous years of reporting Triangle can also provide trend analysis for specific groups of users according to, for example, carriers used or number of parcels sent.

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For full details of the study and to discuss individual requirements please contact: Sue Cornwall
Email: Sue.Cornwall@triangle.eu.com

Tel: +44 (0)870 950 7900
Fax: +44 (0)870 950 7910

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