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C09/2011




Brand

Reinventing the postal
system: how to build the
online positioning of a
paper company
                         How can you develop and strengthen, in a short space of time, the digital
                         positioning of an historic Spanish company such as Correos? How can you
                         transfer a technological and innovative image, close to customer needs, by
                         boosting a 2.0 digital identity linked to the revitalization and the repositioning of
                         the brand?

                         Correos is the Spanish public company which until       three centuries of history), an important number
                         recently held the monopoly for postal services in       of employees (more than 60,000) and a business
                         Spain, a market that was completely liberalized         model based on paper.
                         in 2011, in line with a process promoted in the
                         entire Union by the European Parliament. Even           A changing organization
                         so, Correos remains the main operator in Spain,         The letter and parcel market has declined for some
                         having started a gradual but constant process of        years since the emergence of the digital world,
                         modernization, repositioning and updating in the        emails and social networks. The new products
                         last decade.                                            currently offered by the company (personalized
                                                                                 stamps, urgent parcels or the sending of registered
                         About a year ago, the company’s Marketing managers      faxes with digital certificates by email, to name
                         decided to carry out a project, following the sales     a few) are not very well known by clients and
                         strategy for new products and parcel services, to       the market share in the parcels market in Spain
                         increase web site traffic and boost e-commerce          is only 7.5%.
                         trade, which are sales on the Internet.
                                                                                 The Correos Group has several specialized
                         The process has involved, at first, breaking a series   companies in different sectors at its disposal
                         of internal barriers in an organization that is still   (Correos for letters, Correos Telecom for
                         quite traditional, with a strong inertia (nearly        telecommunications, Chronoexpres for urgent


Document prepared by Corporate Excellence with reference to, among other sources, the intervention of Alfonso Prieto (Manager of the
Sales and Networks Area at Correos) and Salvador Suarez (Partner at Territorio Creativo) during the conference “Reinventing Correos:
online positioning of a paper company” organized by the EOI Business School on 3r November 2011 in Madrid.
Reinventing the       parcels or Exea for large-scale printing) and bases        communication structure, defining specific plans
 postal system: how    itself on 4 fundamental pillars:                           for each of the digital platforms and communities
 to build the online
 positioning of a                                                                 in the web, according to the media type (owned,
 paper company         1.	 Postal market: in decline.                             paid or earned) and using SEO (natural) and SEM
                       2.	 Telematic notifications: growing.                      (sponsored) positioning tactics.
                       3.	 Direct marketing: strong competition.
                       4.	 Parcels: strong competition.                           A blog was created for Correos about e-commerce
                                                                                  in which different elements of online commerce
                       Within the framework of the 2011-2014 business             were discussed: marketing, usability, after-sales
                       plan, the Spanish public company decided, as               relationship, legal and logistic aspects. Also, the
                       explained by Alfonso Prieto, Manager of the                first report in Spain about the state of commerce
                       Sales and Online Area at Correos, to gather its            within social networks was launched to gauge how
                       300 middle and senior managers (members of the             Spanish companies make use of the opportunities
                       Board) to present the new online strategy and find         that this business channel offers, as explained by
                       out what were the main obstacles, the main internal        Salvador Suarez, Partner at Territorio Creativo, the
                       resistance to this strategic change. Some of them          digital consultant that helped Correos design and
                       were as follows:                                           launch the project.

                       •	 Possible problems with unions.                          One of the more prominent dynamization actions
                       •	 A need and opportunity to be active online.             was the one developed at the OMExpo (Online
       ‘Brands         •	 How to interact and engage with clients online.
                                                                                  Marketing Expo) 2011 in Madrid with the launch
                                                                                  of the “I won’t follow you any more” video, in which
 that see the          •	 Reception and management of criticism                   a post box chases pedestrians asking them to follow
    web as an             outside traditional channels.                           him online.
                       •	 Comparison of other public companies
opportunity               within the sector that were online.                     The video reflects something that Suarez insists on:
      to repeat                                                                   the need to achieve ‘engagement’, the link of the
                                                                                  brand with the consumer.
          their        An important change with clear objectives
                       What were the main objectives initially posed by
   traditional         Correos a year ago when it launched the project?           ‘Engagement’, the new Advertising
  advertising                                                                     Brands that don’t bond with their communities
                                                                                  will disappear. The management of the Brand
                       They were mainly these:
actions only                                                                      Community is gaining ground against traditional

 gain fans in          •	 Reposition the brand, revitalize it.                    Corporate Communication or Advertising itself.
                                                                                  ‘Engagement’ with the user, with the client, is the
    the short-         •	 Steer traffic towards the web page.
                                                                                  new Advertising.
                       •	 Cultivate loyalty through social networks.
     term and          •	 Create the virtual community.                           And to achieve this, it is essential to have a
    attacks in         •	 Publicize new services.                                 regular relationship with communities, on a

the medium             •	 Listen and speak to clients.
                                                                                  daily basis, based on what we already know as
                                                                                  ‘Community Management’, but also on special
     and long-                                                                    stimulation or dynamization actions. Dynamize
                       The plan principally followed 6 consecutive phases:
         term.’                                                                   and vertebrate are the two keys that succeed in
                                                                                  generating a qualified community around a brand
                       1.	 Plan: following the objectives outlined above.         which allows it to converse, respond, link, listen
                       2.	 Analyze: the situation of Correos in the web,
                           department by department.
                       3.	 Define: the digital strategy and the online            Two pillars to grow a strong community
                           communication to develop.
                       4.	 Introduce: the management of communities to                                                                                                                    No. of fans
                                                                                                                                               Develop applications




                           link up.                                                                                                                                   Tools set-up
                                                                                                                                               Facebook adverts




                                                                                                                              Link
                                                                                  Dynamize




                       5.	 Launch:     special   actions     to   stimulate                  Re-tweet
                                                                                                                                                                             Campaign
                                                                                                                     Competition




                                                                                                                                                                      Read
                                                                                                                                                                                        Presents




                           communities.                                                       Converse
                                                                                                                                   Following
                                                                                                                                   Proactive


                                                                                                                                               Promote




                       6.	 Grow: the increase of interactions with the
                                                                                                         Discounts
                                                                                             PR 2.0




                           brand and the business.                                                                                                                       Listen
                                                                                                                                               Reply
                                                                                                      Generate content
                                                                                                                                                 Publish




                                                                                                                            Mark as favorite
                       In the opinion of the Sales and Online Area Manager,                             Create profiles on social networks
                       without the drive from the Chief Executive of the
                       company, it would have been impossible to bridge the                                          Vertebrate
                       gap and make Correos a wholly digital brand. The
                       first steps consisted in analyzing the sales and digital   Source: Territorio Creativo, 2011.




                                                                                                                                                                                             Cases   2
Reinventing the       and create the content that these communities                             from networks and forums to the web, and from the
 postal system: how    demand from brands.                                                       web to the point of sale, because ‘social media’ is
 to build the online
 positioning of a                                                                                not an independent channel, but forms part of the
 paper company         One can vertebrate without dynamizing, but one                            online environment as a whole, and this, in turn,
                       must never dynamize without vertebrating. Brands                          forms part of the company’s Brand, -Marketing and
                       that see the web as an opportunity to repeat their                        Communication strategy.
                       traditional advertising actions to gain followers,
                       without giving meaning and structure to the                               Finally, a fundamental factor is the capacity
                       community, only gain fans in the short-term which,                        that a brand such as Correos has in making users
                       sooner or later, will stop following the brand and, in                    recommend other users to become members (MGM,
                       some cases, in the medium and long-term, will end                         Member Gets Member), occasionally troubleshoot
                       up criticizing, or even attacking it.                                     problems with other members, or even publicly
                                                                                                 congratulate or thank the brand for its good service
                       In the Correos project, an analysis was carried out                       or efficiency in solving a problem.
                       of how the presence of the brand in social networks
                       affected each department, what “being online” in a                        Twitter, especially, is consolidating itself, in this
                       proactive and permanent way meant for Customer                            sense, as a platform that, on many occasions, is
                       Care and Loyalty, for Advertising, for Sales, Business                    substituting the traditional Customer Care service
                       Development or Communication.                                             (the Twitter user is especially consumer orientated,

   ‘The con-                                                                                     according to the majority of studies), as well as on
                                                                                                 a corporate level it is substituting the traditional
                       Overcoming the online/offline dichotomy
    versation          The key to managing links or ‘engagement’ is not                          channels such as telephones and emails when using

     with the          online or offline, it is both of these at the same time.                  them with the media.
                       The capacity of brand followers or fans to link with
 brand com-            it via interactions (vitality) or references (influence)                  Conclusion: the importance
    munities           is something that has always happened and still                           of the CEO’s support
                       happens in real life, although now it happens in
     does not          virtual life in a different way because the means, the
                                                                                                 If there is one essential lesson to be learned it is the
                                                                                                 importance of involving all departments within an
     begin or          channels and, therefore, the tone and development                         organization, but also, and primarily, the importance
                       of the conversation are different.
  end in the                                                                                     of its maximum executive to drive and realize such
                                                                                                 a strategic project as this one, especially in an
      web or           But the essence remains the same. Indeed, the                             historically traditional organization like Correos.
                       conversation with the brand communities does not
   outside it,         begin or end in the web or outside it, but can start                      Other important aspects to reinvent the brand were
but starts in          in one place, continue in another and return to                           the correct selection of the platforms in which to
                       the first place: the traffic is both ways, but always
   one place,          in the same direction, the link of brand community
                                                                                                 converse, understand the cultural change that
                                                                                                 the process entails, the speed of the new channel
   continues           through content.                                                          when gaining clients, the importance of quality and

  in another           For this reason, the strategy must be global, as is the
                                                                                                 community interest contents and the optimization
                                                                                                 of the channel for the Customer Service.
and returns            case with Correos; so that the success online can be
                       reasonably converted into the offline world, so that
  to the first         the attraction of traffic in the digital world translates
       place.’         into concrete results in the real world. Ultimately,


                       Community Management by KPIs

                                    -Backweets to URLs
                                    - acklinks
                                     B
                                    -Results                             Size
                                    -Clicks                              (fans)

                                                      Activity
                                                      (traffic)          -Users
                         Influencia            -Pages seen               -RSS subscriptors
                         (referencias)         -Unique visitors          -Followers on Twitter
                                               -Rebound rate             -Fans in Facebook
                                               -Permanence times         -Friends in other 2.0


                        - ommentaries: blogs and
                         C
                         forums
                        - ommentaries: I like it
                         C                                 Vitality
                         (Facebook) and favorites       (interactions)
                        - : Mentions on
                         @
                         Twitter


                       Source: Genbeta Social media, 2011.




                                                                                                                                              Cases    3
©2011, Corporate Excellence - Centre for Reputation Leadership
Business foundation created by large companies to professionalize the management of intangible assets and contribute to the development
of strong brands, with good reputation and able to compete in the global market. Its mission is to be the driver which leads and consolidates
the professional management of reputation as a strategic resource that guides and creates value for companies throughout the world.

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Reinventing the postal system how to build the online positioning of a paper company

  • 1. Cases Strategy Documents C09/2011 Brand Reinventing the postal system: how to build the online positioning of a paper company How can you develop and strengthen, in a short space of time, the digital positioning of an historic Spanish company such as Correos? How can you transfer a technological and innovative image, close to customer needs, by boosting a 2.0 digital identity linked to the revitalization and the repositioning of the brand? Correos is the Spanish public company which until three centuries of history), an important number recently held the monopoly for postal services in of employees (more than 60,000) and a business Spain, a market that was completely liberalized model based on paper. in 2011, in line with a process promoted in the entire Union by the European Parliament. Even A changing organization so, Correos remains the main operator in Spain, The letter and parcel market has declined for some having started a gradual but constant process of years since the emergence of the digital world, modernization, repositioning and updating in the emails and social networks. The new products last decade. currently offered by the company (personalized stamps, urgent parcels or the sending of registered About a year ago, the company’s Marketing managers faxes with digital certificates by email, to name decided to carry out a project, following the sales a few) are not very well known by clients and strategy for new products and parcel services, to the market share in the parcels market in Spain increase web site traffic and boost e-commerce is only 7.5%. trade, which are sales on the Internet. The Correos Group has several specialized The process has involved, at first, breaking a series companies in different sectors at its disposal of internal barriers in an organization that is still (Correos for letters, Correos Telecom for quite traditional, with a strong inertia (nearly telecommunications, Chronoexpres for urgent Document prepared by Corporate Excellence with reference to, among other sources, the intervention of Alfonso Prieto (Manager of the Sales and Networks Area at Correos) and Salvador Suarez (Partner at Territorio Creativo) during the conference “Reinventing Correos: online positioning of a paper company” organized by the EOI Business School on 3r November 2011 in Madrid.
  • 2. Reinventing the parcels or Exea for large-scale printing) and bases communication structure, defining specific plans postal system: how itself on 4 fundamental pillars: for each of the digital platforms and communities to build the online positioning of a in the web, according to the media type (owned, paper company 1. Postal market: in decline. paid or earned) and using SEO (natural) and SEM 2. Telematic notifications: growing. (sponsored) positioning tactics. 3. Direct marketing: strong competition. 4. Parcels: strong competition. A blog was created for Correos about e-commerce in which different elements of online commerce Within the framework of the 2011-2014 business were discussed: marketing, usability, after-sales plan, the Spanish public company decided, as relationship, legal and logistic aspects. Also, the explained by Alfonso Prieto, Manager of the first report in Spain about the state of commerce Sales and Online Area at Correos, to gather its within social networks was launched to gauge how 300 middle and senior managers (members of the Spanish companies make use of the opportunities Board) to present the new online strategy and find that this business channel offers, as explained by out what were the main obstacles, the main internal Salvador Suarez, Partner at Territorio Creativo, the resistance to this strategic change. Some of them digital consultant that helped Correos design and were as follows: launch the project. • Possible problems with unions. One of the more prominent dynamization actions • A need and opportunity to be active online. was the one developed at the OMExpo (Online ‘Brands • How to interact and engage with clients online. Marketing Expo) 2011 in Madrid with the launch of the “I won’t follow you any more” video, in which that see the • Reception and management of criticism a post box chases pedestrians asking them to follow web as an outside traditional channels. him online. • Comparison of other public companies opportunity within the sector that were online. The video reflects something that Suarez insists on: to repeat the need to achieve ‘engagement’, the link of the brand with the consumer. their An important change with clear objectives What were the main objectives initially posed by traditional Correos a year ago when it launched the project? ‘Engagement’, the new Advertising advertising Brands that don’t bond with their communities will disappear. The management of the Brand They were mainly these: actions only Community is gaining ground against traditional gain fans in • Reposition the brand, revitalize it. Corporate Communication or Advertising itself. ‘Engagement’ with the user, with the client, is the the short- • Steer traffic towards the web page. new Advertising. • Cultivate loyalty through social networks. term and • Create the virtual community. And to achieve this, it is essential to have a attacks in • Publicize new services. regular relationship with communities, on a the medium • Listen and speak to clients. daily basis, based on what we already know as ‘Community Management’, but also on special and long- stimulation or dynamization actions. Dynamize The plan principally followed 6 consecutive phases: term.’ and vertebrate are the two keys that succeed in generating a qualified community around a brand 1. Plan: following the objectives outlined above. which allows it to converse, respond, link, listen 2. Analyze: the situation of Correos in the web, department by department. 3. Define: the digital strategy and the online Two pillars to grow a strong community communication to develop. 4. Introduce: the management of communities to No. of fans Develop applications link up. Tools set-up Facebook adverts Link Dynamize 5. Launch: special actions to stimulate Re-tweet Campaign Competition Read Presents communities. Converse Following Proactive Promote 6. Grow: the increase of interactions with the Discounts PR 2.0 brand and the business. Listen Reply Generate content Publish Mark as favorite In the opinion of the Sales and Online Area Manager, Create profiles on social networks without the drive from the Chief Executive of the company, it would have been impossible to bridge the Vertebrate gap and make Correos a wholly digital brand. The first steps consisted in analyzing the sales and digital Source: Territorio Creativo, 2011. Cases 2
  • 3. Reinventing the and create the content that these communities from networks and forums to the web, and from the postal system: how demand from brands. web to the point of sale, because ‘social media’ is to build the online positioning of a not an independent channel, but forms part of the paper company One can vertebrate without dynamizing, but one online environment as a whole, and this, in turn, must never dynamize without vertebrating. Brands forms part of the company’s Brand, -Marketing and that see the web as an opportunity to repeat their Communication strategy. traditional advertising actions to gain followers, without giving meaning and structure to the Finally, a fundamental factor is the capacity community, only gain fans in the short-term which, that a brand such as Correos has in making users sooner or later, will stop following the brand and, in recommend other users to become members (MGM, some cases, in the medium and long-term, will end Member Gets Member), occasionally troubleshoot up criticizing, or even attacking it. problems with other members, or even publicly congratulate or thank the brand for its good service In the Correos project, an analysis was carried out or efficiency in solving a problem. of how the presence of the brand in social networks affected each department, what “being online” in a Twitter, especially, is consolidating itself, in this proactive and permanent way meant for Customer sense, as a platform that, on many occasions, is Care and Loyalty, for Advertising, for Sales, Business substituting the traditional Customer Care service Development or Communication. (the Twitter user is especially consumer orientated, ‘The con- according to the majority of studies), as well as on a corporate level it is substituting the traditional Overcoming the online/offline dichotomy versation The key to managing links or ‘engagement’ is not channels such as telephones and emails when using with the online or offline, it is both of these at the same time. them with the media. The capacity of brand followers or fans to link with brand com- it via interactions (vitality) or references (influence) Conclusion: the importance munities is something that has always happened and still of the CEO’s support happens in real life, although now it happens in does not virtual life in a different way because the means, the If there is one essential lesson to be learned it is the importance of involving all departments within an begin or channels and, therefore, the tone and development organization, but also, and primarily, the importance of the conversation are different. end in the of its maximum executive to drive and realize such a strategic project as this one, especially in an web or But the essence remains the same. Indeed, the historically traditional organization like Correos. conversation with the brand communities does not outside it, begin or end in the web or outside it, but can start Other important aspects to reinvent the brand were but starts in in one place, continue in another and return to the correct selection of the platforms in which to the first place: the traffic is both ways, but always one place, in the same direction, the link of brand community converse, understand the cultural change that the process entails, the speed of the new channel continues through content. when gaining clients, the importance of quality and in another For this reason, the strategy must be global, as is the community interest contents and the optimization of the channel for the Customer Service. and returns case with Correos; so that the success online can be reasonably converted into the offline world, so that to the first the attraction of traffic in the digital world translates place.’ into concrete results in the real world. Ultimately, Community Management by KPIs -Backweets to URLs - acklinks B -Results Size -Clicks (fans) Activity (traffic) -Users Influencia -Pages seen -RSS subscriptors (referencias) -Unique visitors -Followers on Twitter -Rebound rate -Fans in Facebook -Permanence times -Friends in other 2.0 - ommentaries: blogs and C forums - ommentaries: I like it C Vitality (Facebook) and favorites (interactions) - : Mentions on @ Twitter Source: Genbeta Social media, 2011. Cases 3
  • 4. ©2011, Corporate Excellence - Centre for Reputation Leadership Business foundation created by large companies to professionalize the management of intangible assets and contribute to the development of strong brands, with good reputation and able to compete in the global market. Its mission is to be the driver which leads and consolidates the professional management of reputation as a strategic resource that guides and creates value for companies throughout the world. Legal Notice This document is property of the Corporate Excellence - Centre for Reputation Leadership and has as its objective to share business knowledge about Brand, Reputation, Communication and Public Affairs Management. This document is directed exclusively towards its addressee and contains confidential information, subject to professional secrecy, whose disclosure, copy or non-authorized use is against the Law. If you receive this document by mistake, let us know immediately and erase it without keeping a copy. Corporate Excellence - Centre for Reputation Leadership is the owner of all the intellectual property rights of the images, texts, designs and any other content or elements of this product and has the necessary permission for its use, and therefore, its copy, distribution, public release or transformation is prohibited, without express authorization from the owner.