Bulk business mailers will be compensated if UK postal operator Royal Mail fails to hit delivery targets.

The new scheme is the latest attempt by regulator Postcom to improve Royal Mail's service.

Under the plan, compensation will be awarded if the postal operator misses its national objectives by more than 1%. The level will match the percentage by which RM falls short – for example, if the mail giant misses delivery targets by 2%, bulk mailers will get 2% off their bills. The maximum rebate will be 5%.

"I hope this compensation scheme concentrates the minds of Royal Mail management and staff on the importance of meeting their delivery targets," declared Postcom chairman Graham Corbett.

"Under these new rules, if Royal Mail again misses its bulk mail targets by a significant amount it will be liable to pay substantial compensation to its customers."

Data sourced from: BrandRepublic (UK); additional content by WARC staff