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New Post Office loyalty scheme this Christmas

By Chris Dawson October 8, 2021 - 11:00 am

If you despatch parcels at your local Post Office then there’s amazing news out today – news of the first ever Post Office loyalty scheme with financial rewards for users of its free, fast-track Drop & Go service. The Post Office will now reward customers that spend £100 or more per month with the Drop & Go service during November and December at their local branch.

Drop & Go customers increased fourfold in the run-up to last Christmas. The service is popular with small businesses, marketplace sellers and customers who started ‘bedroom businesses’ during the lockdowns. Approximately two thirds of marketplace sellers still use the Post Office’s 11,500 branches for their customers’ parcels.

You might wonder why with such high usage of the Post Office that a loyalty scheme is needed. We see a number of reasons – firstly, the Post Office Drop & Go service competes with Royal Mail Click & Drop and if you use Royal Mail’s label printing service then you can drop off at Royal Mail Delivery Offices or Parcel Postboxes entirely bypassing your local Post Office. Secondly, not all Royal Mail services can be purchased at the Post Office (e.g. Tracked 24/48) so you’re effectively buying into a reduced range of products. The Post Office loyalty scheme is an incentive to keep you using your local Post Office and make sure your parcel revenues stay with them.

“The parcel market will see fierce trading throughout the critical Christmas period and Post Office will challenge for increased share with our first ever loyalty scheme for customers. Our physical presence in every local community across the UK, combined with the expert knowledge and advice Postmasters provide regarding postage, means we are well placed to support small and independent businesses during the busiest time of the year.”
– Nick Read, Chief Executive, the Post Office

The loyalty scheme has been created in partnership with Postmasters, who have also helped improve Drop & Go with new users able to access their account instantly with a simpler customer journey.

Post Office is launching a multi-channel marketing campaign: a partnership with eBay; advertising across Instagram, Facebook and Twitter; a Google My Business campaign; and advertising on podcasts popular with small and medium enterprises.

The Post Office loyalty scheme

There are two “Reward Periods” (1 November – 30 November 2021 and 1 December – 31 December 2021). Existing or new customers need to spend at least £100 in one or both of the Reward Periods. Whatever is spent over £100 (regardless of the number of parcels or price of parcels) during each Reward Period will earn the customer a reward that can be redeemed to their Drop & Go account.

Reward Tier

Spend in each reward period

Reward for each reward period

Bronze £100 – £499.99 £10 Reward
Silver £500 – £999.99 £20 Reward
Gold £1000 – £2,499.99 £40 Reward
Platinum £2,500 – £4999.99 £60 Reward
Titanium £5,000 – £9999.99 £80 Reward
Diamond £10,000 or more £100 Reward

 
In the first week after each Reward Period has ended, the customer will receive confirmation of the value of their promotional reward along with a barcode that can be used in their local branch to apply credit to the customer’s Drop & Go account. The loyalty scheme ends on the 31st of December 2021.

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