Core activity: Business process outsourcing
Local leader: Gary Woodham, CEO
Revenue: NZ$210 million (FY ended June 08)
Key customers: Bank of New Zealand, ASB Bank, Ministry of Social Development, Southern Cross Healthcare, Inland Revenue Department, Loyalty NZ, Coles (Australia)
Employees: 1,379 full-time equivalent
Fully owned by NZ Post, Datamail continues to operate as a separate entity with independent board members. The company has been restructured into four branded divisions to deal with existing customers and new growth opportunities. These are: Datamail, direct marketing division Kinetic121, Converga, and Communication Arts. (Under Converga, Datamail is managing e-procurement portals on behalf of clients, particularly the processing of purchase orders and subsequent delivery.)
CEO Gary Woodham says the redevelopment has led to a single, end-to-end, integrated communications management process — customers now deal with only one contact person across all brands. Meanwhile, customers that need only "a piece of the puzzle" can tap into the relevant branded service area.
Thirty per cent of Datamail’s revenue is based on the management of paper-based communications, another 30 per cent is generated from digital services, with the rest secured from IT development and consulting services. Woodham says this is a long way from Datamail’s position 24 months ago, when around 80 per cent of revenue was generated through the management of paper-based communications.
Challenges include growth strategies for Kinetic121 — which recently won a Vero Small Business Award — in an economic environment that tends to be harsh on marketing expenditure. "Marketing, travel, and training spend is often the first to go in a tight economy. Conversations we are having in the market are slowing up compared to this time last year," says Woodham.
The company has a large number of government clients, a pipeline big enough for Datamail "to stay where we are" says Woodham. At press time, the company was working to produce 2.9 million voting packs for the general election.
"The main sectors we serve are government and financial services, two sectors that will face turmoil in the next few months. But these clients still have to talk to their customer base, and we have a choice to offer them — paper based or digital communications," says Woodham.
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