Driving Ridership Strategic Partnerships

Transcription

1 Driving Ridership Strategic Partnerships Feb 29, 2012 Presented by Priya Bhasin-Singh, Strategic Marketing Associate 2012 APTA Marketing & Communications Conference

2 About Edmonton Transit System (ETS) 2 Vision A fully integrated, progressive, easy-to-use public transit system that supports economic development and improves the quality of life in Edmonton Mission Customer-focused, safe, reliable and affordable public transit services that link people and places Fleet 189 Bus Route 253 School Routes 1 LRT Route 900+ Buses

3 Situational Analysis 3 Red Flag Fall of 2009, ETS lost 10% of our riders Adult Monthly pass sales dropped substantially concern as AMP is highest revenue product Evaluate Growth strategies Promote public transit in City Get Adult commuters back

4 Priorities What are our top objectives?

5 Priorities 5 Priorities Position ETS as the Preferred Choice of Travel Strengthen public perception and customer loyalty. Improve Customer Intelligence and Retention Engage riders and reduce customer attrition by 5% within 3 years. Change Attitudes / Alter Behaviors Retain frequent commuters and transition those riding less to products that generate more revenue (ticket strips and monthly passes). Boost e-commerce Awareness and Increase Online Sales

6 Research & Development How do we reduce customer attrition?

7 Research & Development 7 Now what? Researched Internal Solutions Not enough resources. Approached by 3 rd Party Pushing Green Agenda Low market penetration and awareness. 3 rd Party Acquired by AIR MILES reward miles Eventually Fall of 2009, ETS Partners with AIR MILES reward miles

8 Who is AIR MILES reward miles? 8 Established in 1992, most popular loyalty program in Canada. 98% of Canadians recognize the AIR MILES brand. 10 million + active AIR MILES Collector accounts, representing two-thirds of Canadian households (Over 200 brand name partners). Collectors earn points for their every day shopping across a wide range of retail brands and categories. All points accumulate in a single account so the Collector can redeem early and often. AIR MILES provides rich data and expert insight help partners understand their customers and win the share-of-customer battle.

9 Who is AIR MILES reward miles? 9 AIR MILES for Social Change leverages the AIR MILES Reward Program s reach and power to mobilize Collectors to make healthy and environmentally-friendly choices. Partnerships with private sector, public sector and not-for-profit organizations. Focus on innovative, multi-partner health and environmental coalition partnerships in 4 key categories: Energy Conservation (via AIR MILES My Planet) Healthy Living Transit Use (via AIR MILES My Planet) Recycling (via AIR MILES My Planet) Defined Measurement plans with strong results in meeting partner objectives plus improving partner ROI.

10 Who is AIR MILES reward miles? 10 AIR MILES Collector Demographic Profile

11 Strategy Developing the action plan!

12 Loyalty Program Deployment 12 How does the program work? Select fare product with loyalty offering. At checkout customer prompted to put in AIR MILES collector number. AIR MILES rewards directly deposited into customers account within 24hrs. AIR MILES reward miles an Online Exclusive Riders must purchase fare product online to receive rewards

13 Product Loyalty Schemes 13 What are the base offers? Two Programs Earn Program Adult Monthly Pass Earn 15 AIR MILES reward miles with each purchase Earn 150 AIR MILES reward miles after eight purchases Adult Ticket Strips Earn 3 AIR MILES reward miles each purchase Redeem Program Adult Monthly Pass Redeem 745 AIR MILES reward miles for an ETS Adult Monthly Pass

14 Product Loyalty Schemes 14 What do the base ETS offers look like?

15 Product Loyalty Schemes 15 Promotional Bonus Offers In 20, ETS ran 4 bonus offers. Earn 2x AIR MILES reward miles on an Adult Monthly Pass April July September December

16 Results What do the numbers show?

17 AMP sales What do the numbers show? 17 Case Study January - April 20 AMP Sales 20-25% compared to same period in May 19 - July 7: Online store closed Re-opened store July 7 ( Earn 2x AIR MILES reward miles on an Adult Monthly Pass ) Sales increase from 350 units in 2010 to 359 units in 2012 over 2.5 week promotional period Adult Monthly Pass (AMP) Sales Jul-10 Jul Year

18 New Opportunities How can we grow our partnership?

19 A New Partner: Safeway 19 Fall of 20, ETS Partnered with Safeway Already an ETS Fare Product Distributor Already an AIR MILES rewards partner Two Promotional Offers to Date: Focus on Adult Monthly Pass Purchase an Adult Monthly Pass from Safeway and Earn 25 Bonus AIR MILES reward miles

20 Units Sold Results of Safeway Partnership 20 Adult Monthly Pass Sales at Safeway Retail Outlets October 20 AMP Sales over 1000 units compared to Oct sales. February 2012 AMP Sales 3829 units compared to Feb. 20 sales. Safeway Outlets AMP Sales Sep- 10 Oct- 10 Nov- 10 Dec- 10 Jan- Feb- Mar- Apr- M ay- Jun- Month/Year Jul- Aug- Sep- Oct- Nov- Dec- Jan- 12 Feb- 12 AMP Sales

21 Key Takeaways 21 The quantity of miles offered must be attractive enough to incentivize riders to make the switch to a higher revenue product. Riders need frequent and detailed information (top-of-mind) Promotional blitzes that reward riders with a bonus are necessary to keep riders engaged in the program. Customers require an easy-to-use and efficient process of receiving their rewards to change their behaviors and become a loyal customer. A strong partnership with the Loyalty Rewards Partner is essential to help grow and develop the program.

22 Thank you Questions? Priya Bhasin-Singh, Strategic Marketing Associate