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Looking Back and

Looking Forward

End-User insights

March 2013

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• Context – its been quite a year – reviews, engagement and imminent

developments.

• Our plan – Keep listening, talking, identifying what we can do better.

• Purpose of this session – Insight from our day to day interaction with the

Market.

• Areas of content:

– How has the market changed and where is it going?.

– e-commerce and self service – underlining the role the PAF plays.

– Diversity, innovation and delivering tools – the growth of application use

within organisations.

Introduction and Context

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Where is the Market?

History Now Outside the UK

Small number of

Resellers

Small range of

applications – limited

variation

Focus on the data

Huge diversity of

service offerings

Very strong

differentiation

Application led with

strong innovation

PAF® an essential

pre-requisite

Less economic/social

value derived

Direct Licensing

Models

Less consistent/

comprehensive

Licences

Significant variation

in postal address

files

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Register

Shop and

Buy

Pay

Distribute Route

Track

Returns

Customer

Service

E-commerce: PAF ® buys online

Deliver

Macro e-commerce story:

• £78bn - estimated value of the UK

online retail market in 2012

• £851m - annual cost of failed UK online

deliveries

• 300% - growth of mobile-commerce in

2012

Challenges

• £14bn of lost revenue by UK online

retailers p.a. as a result of poor user

experience.

• 1 in 4 consumers find it too difficult to

enter payment details via mobile phone.

What is the role of PAF® verification?

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End Users and Usage:

E-commerce and self service are game changers

The main game has changed:

• The profile of End-Users and Usage

reflect structural changes in market

dynamics.

• Transactional volume explosion

fuelled by e-commerce and self service

• Static End-User number is not an

indicator of a slow marketplace:

• End Users need a range of

different applications

• Drives increased usage.

350k

6.7m

0.9k

153m

36.9k

6.7m

1007

11.5m

1k

207m

36.6k

353k

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Industry Sector Market share % of licence fee income:

Key sector, little shift in share

21.6

13.9

11.2

10.7

12.9

11.0

11.2

21.8 3.0

3.3

3.2

2.6

2.1

2.9

2.9

2.5

2.1

3.5

10.4 10.1

17-19% not sector identified

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Not long ago:

• The 1st revolution. Data has swept into every industry and business function. There are 83

more Solutions Providers today than 5 years ago.

• Little movement of share of PAF® revenue by market sector reflects high penetration of

PAF® licensing into End-Users within current arrangements and market approaches.

Developments:

• Some market consolidation evident.

• Diversification into address management of key adjacent players

• Service extensions an established norm

On its way:

• The 2nd revolution - Mobile e-commerce and service? Still in its infancy, but about to go

mainstream. What this looks like? What will its impact be?

Market Insight:

Looking back, looking now, looking forward

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• Making PAF® Free at Point of Use for registered Public Sector Organisations in England

and Wales from 1st April 2014.

• Widening and increasing the use of PAF® , continuously promoting good addressing –

benefits everyone.

• Public Sector using PAF® address data capture is a key business efficiency tool –

enabling government cost savings. e-Government service provision equally vital.

• From a marketplace perspective, a PAF® Public Sector Licence:

– Makes it easier for Solutions Providers to deploy PAF® based software solutions and

efficiency tools.

– Removes complex licensing issues associated with large inter-connected public

sector organisations

Market Development Now:

The PAF ® Public Sector Licence

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Key Points

•Updating, verifying and providing a world class

postal address file is a significant ongoing

endeavour.

•All PAF users have access to a significant customer

service operation.

Operational consistency in checking NYB is the key focus.

•Strong customer service mechanism in place to assist with

delays in verification.

Creating new addresses with local authorities – urgent

change needed

PAF® and customer service

29m

224k

1.5m

258

77%

97%

19k

24hrs

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The Developer Licence has made a

strong start

• Underpins the intent to use PAF®

• Significant early take up

• Sign up process is quick and easy

Internal 26%

Address

Solution 18%

Postal 10% Data cleansing

6%

Website or App

21%

Research l9%

Developer and Innovator update

520 Registered and

downloaded PAF ®

sample data

13% Require

regular data

updates

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• Use of PAF® is increasing – how people use it has changed and is constantly

changing now.

• A diverse range of applications is transforming the market.

− More applications to a static number of end user organisations.

− Explosion of transactional volume – internal and external.

− e-commerce and self service dominate – affecting everyone.

Doing all we can to respond to input, feedback and market needs.

• The next revolution? – Mobile digital? Something we have not seen yet?

• Our role remains clear – maintain and provide a world class postal address file

everyone knows, trusts, can rely on and use easily.

• Can only do that by engaging, listening and demonstrating our commitment to

improving.

Summary: