Yodel receives £85m in funding – but how should it be spent?
Yougov’s chief executive Steve Hatch takes a closer look at the data behind the biggest stories in business.
Liverpool-based delivery firm Yodel recently announced an £85m funding package from a consortium of investors. The deal has dealt the final blow to the proposed merger between the parcel company and Shift, which led to a rescue deal for Yodel earlier this year.
The firm has said that the deal will give it “financial security”, but the investment may provide an opportunity to address some areas where public perceptions could be better. Data from YouGov BrandIndex can identify areas of improvement.
In general terms, consumer sentiment towards Yodel is broadly negative. Impression scores, which measure whether consumers have a good or bad opinion of a brand, are at -5.6; for the average delivery brand in the UK, scores are +5.6. Adverse headlines about lost or improperly delivered packages may have played a role here: even if journalists seldom write newspaper stories about successfully delivered parcels.
Still, Yodel’s Customer Satisfaction scores are at 2.0, which are lower than the average scores for the industry of 8.8. It’s important not to overstate this gap: people who use the brand are happier than not with it. Nevertheless: they’re not satisfying their customers to the same extent as some of their competitors, and it’s worth thinking about why.
While Value for Money for Yodel (-2.5) is lower than the industry average (1.7), this amounts to a perception gap of 4.2 points. So the main issue may be perceptions of the brand’s quality.
This metric sits at -8.0, compared to a combined average of 4.4 for other parcel delivery services in the UK: a gulf of 12.4 points. Whether it’s the aforementioned adverse headlines colouring public opinion, or negative first-hand experiences, turning these opinions around may alleviate some of Yodel’s current image problems.
To that end, it may be heartening for investors and consumers alike that the company has pledged to follow spending on its fleet and network earlier this year with investment in automation and new technologies. But will these strategic moves be enough to deliver a turnaround in Yodel’s public perceptions?