63% of Small Businesses Are Ready to Leave Canada Post for Good

The ongoing Canada Post strike has significantly disrupted mail and parcel delivery services across the country, causing widespread concern among businesses and consumers alike. This insight focuses on the strike, its implication to customer experience, and how can brands manage the crisis.

Canada Post Strike - What Is It?

Many Canadian businesses use Canada Post as their sole postal delivery service owing to good reliability, good customer service, and competitive pricing. Without an alternative, they are prone to the disruptions associated with strikes. The current labor dispute began on November 1, 2024, when the Canadian Union of Postal Workers (CUPW) initiated rotating strikes in major cities after negotiations with Canada Post failed to reach an agreement on key issues such as job security, working conditions, and wage parity.

As the strike entered its second week, the impact on mail delivery became more pronounced. Canada Post reported that parcel backlogs had reached over 1 million items, with delays extending to several weeks in some cases. The situation escalated on November 10, 2024, when CUPW announced a nationwide walkout, effectively halting all mail and parcel services across Canada. The strike's timing, coinciding with the start of Black Friday sales and the holiday shopping season, has amplified its effects on both consumers and businesses.

https://www.youtube.com/watch?v=pirupWvVk0M

E-commerce companies, in particular, have been hit hard, with many reporting significant drops in sales and customer satisfaction. A survey conducted by the Canadian Federation of Independent Business (CFIB) found that:

• A strong majority (79%) of small businesses rely on Canada Post services to do business
• 75% of small firms said the strike will negatively impact their business, particularly with challenges to cash flow due to delayed invoices and cheques and higher cost delivery alternatives

Customer Experience Implications

The disruption in mail services has had a profound impact on customer experience across various industries:

• Retailers using flyers as a marketing tool have to find alternative ways such as digital flyer or SMS to communicate weekly sales.
• Healthcare providers have reported delays in delivering critical medical supplies and test results to patients.
• Financial institutions have struggled to send important documents and statements to their clients.
• Government services have been affected, with delays in processing and mailing tax refunds and other essential communications.

Crisis Management

For businesses across all sectors, clear and frequent communication with customers is crucial. Companies that have been transparent about the situation and the use of Canada Post and proactive in offering solutions will see higher customer satisfaction rates during this period.

To manage this crisis, companies have to adopt various strategies. E-commerce businesses need to be proactive with many implementing real-time updates on their websites to inform customers about potential delays. Some have partnered with local pickup carriers (like Uber) to offer alternative delivery options. Others will have to incur higher costs of shipping with Canada Post alternative couriers like DHL and UPS.

Some retail businesses have increased their in-store inventory to compensate for delayed shipments and have been encouraging customers to shop in person rather than online. For returns, some retailers are more flexible on return dates the package is already in the Canada Post system. Financial institutions have ramped up their digital communication efforts over the years, urging clients to switch to electronic statements and online banking services over paper statements.

Healthcare providers have been particularly challenged, given the critical nature of their shipments. Many have resorted to using specialized medical couriers for urgent deliveries, while also increasing their use of telemedicine services to reduce the need for physical document transfers.

Quick Tips on Managing the Canada Post Strike

There is no clear timeline on when the Canada Post strike will end. As implication looms, here is list of 15 quick tips for different companies to consider:

1. Communication: Use alternative communication techniques such as chatbots, SMS, emails, website, or mobile application to engage customers, vendors, and other affected parties. Ensure these techniques are tested so that information is consistent across different channels.
2. Timing: Consistently communicate with customers, vendors, and other affected parties on the delay impacts, offer solutions, and reset expectations. This will alleviate some anxiety caused by the disruptive event.
3. Policies: Adapt and improve related customer experience policies to ensure affected parties are not left out to their own devices.
4. Diversify shipping options: Don't rely solely on Canada Post. Establish relationships with multiple courier services to ensure continuity of deliveries, as required.
5. Feature changes: Until the strike ends, assesses shipping features across all channels and ensures that Canada Post is not a shipping or return option available for customers.
6. Offer local/regional pickup options: Where possible, provide customers with the option to pick up or return their orders from a physical location.
7. Prioritize critical shipments: Identify which deliveries are most time-sensitive and use premium shipping services for these items.
8. Optimize packaging: With alternative shipping methods potentially being more expensive, review your packaging to ensure it's as compact and lightweight as possible without compromising product safety.
9. Review and adjust inventory management: Consider increasing stock levels to buffer against potential supply chain disruptions.
10. Customer support: Businesses should evaluate the level of customer support required and have an expansion plan in place to handle the increased traffic from the Canada Post disruption.
11. Offer incentives for patience: Consider providing discounts or future credits to customers who are willing to wait longer for their deliveries.
12. Stay informed: Keep abreast of the latest developments in the strike negotiations and be prepared to adjust your strategies accordingly.
13. Create separate space: For brands facing significant impact on the Canada Post strike, create a separate webpage highlighting the impact, solutions available, and next steps. An all-inclusive space will reduce customer frustration searching for information.
14. Annual testing: Nothing should be left to chance. Given shipping plays an important component for many businesses, they should be ready to. manage disruption on day one. This is accomplished by conducting annual testing on policies and procedures similar to ones completed for disaster recovery and business continuity.
15. Return to normal plan: When the strike is over, ensure there is a plan in place to manage shipment processing. As it will take some time for Canada Post service to fully return to normal, it is important to stay resilient, transparent, and communicative with all affected parties.

Bonus tip:
Training/education and contextual engagement: When a company is under crisis, it is important for them to train employees and management on the latest policies and procedures, provide support, and ensure metrics are available for quick actions. Communication channels should be updated to ensure everyone accesses the same messaging and next steps. As anxiety goes up, empathy should be shown more widely.

All affected companies should regularly monitor and review the Canada Post website for updates.

Transform For Better

The Canada Post strike, while disruptive, presents an opportunity for businesses to transform and improve their operations. This crisis has highlighted the importance of adaptability and resilience in supply chain management. Companies that emerge stronger will be those that use this experience to build more robust and flexible logistics systems. One key area for transformation is the acceleration of digital initiatives. Businesses should invest in enhancing their online presence and e-commerce capabilities. This includes improving website functionality, implementing more sophisticated inventory management systems, and developing user-friendly mobile applications.

Another crucial aspect is the development of a more diversified and localized supply chain. Companies should explore partnerships with regional suppliers and logistics providers to reduce dependency on a single national carrier. This approach not only mitigates risks associated with future disruptions but can also lead to more efficient and sustainable delivery models. Customer service is another area ripe for transformation. The strike has underscored the importance of clear, timely, and empathetic communication.

Businesses should invest in training their customer service teams to handle crisis situations effectively. Additionally, implementing AI-powered chatbots and self-service portals can help manage increased customer inquiries during disruptions.

Finally, this situation presents an opportunity for businesses to reevaluate their overall logistics strategy. This might involve exploring innovative solutions such as drone deliveries for urban areas or partnering with shared economy platforms for last-mile delivery. By embracing these transformations, businesses can not only weather the current crisis but also position themselves for long-term success in an increasingly unpredictable business environment.

The Canada Post strike serves as a wake-up call for businesses to build more resilient, flexible, and customer-centric operations. Those who view this challenge as an opportunity for transformation will likely find themselves better equipped to handle future disruptions and meet evolving customer expectations.

How Can We Help?

Transformidy is available to assist in helping you understand trust and assess how the Canada Post strike affect your business.

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