Overview of Transit Marketing
By Karla Karash
March 18,
18 2010
Presentation Content
Content
Discussion: How to market public transportation?
Definition of Marketing
The Marketing
g Process
Market Research Techniques
Design of Service and Marketing Plan
Pla
Marketing to Consumers and Businesses
Measuring Ridership and Customer Satisfaction Results
Final Comments
Marketing and Market Research in Public Transportation
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2
How to Market Public Transportation?
Transportation?
Marketing and Market Research in Public Transportation
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Definition of Marketing
Marketing
Those actions that help bring together customers and products or services,
including market research into customer needs, image marketing, custome
customer
information, and measurement of customer satisfaction.
Marketing is so basic that it cannot be considered a separate function... It is the
whole business seen from the point of view of its final result, that is, from the
customer’s point of view.
PETER DRUCKER
A ... goal for the marketing is to aim to maximize Consumer satisfaction. The
marketer’s task is to track changing consumer wants and influence the
companyy to ad just its mix of goods and services to those that are needed. The
marketer makes sure that the company continues to produce value for the
target customer markets.
PHILIP KOTLER
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The Marketing Process
Process
Customer comments/
customer satisfaction
Other idea sources
Goals
Idea (new route, fare,
service marketing approach)
ideas from
peers
CREDIT CARD
www.Bankname.com
1233 5673 8765 9876
MONTH/YEAR
MONTH/YEAR
VALID
UNTIL
05/15
05/10
FROM
END
CARD HOLDER NAME
Market Research:
Gather data on market
(from customers, available
data, market research)
Bankname
Customer purchase decision
Implement plan with
improvements and
communication
goals,
service d
efin
sales app ition,
roach
Develop
marketing plan
promotion,
& support
service design
Develop
service plan
Figure by MIT OpenCourseWare.
Marketing and Market Research in Public Transportation
3/18/10
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The Marketing Process
Process
Customer comments/
customer satisfaction
Other idea sources
Goals
Idea (new route, fare,
service marketing approach)
ideas from
peers
CREDIT CARD
www.Bankname.com
1233 5673 8765 9876
VALID
FROM
MONTH/YEAR
MONTH/YEAR
UNTIL
05/15
05/10
END
CARD HOLDER NAME
Market Research:
Gather data on market
(from customers, available
data, market research)
Bankname
Customer purchase decision
Implement plan with
improvements and
communication
goals,
service d
efin
sales app ition,
roach
Develop
marketing plan
promotion,
& support
service design
Develop
service plan
Figure by MIT OpenCourseWare.
Marketing and Market Research in Public Transportation
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Market Research: Secondary Data Sources
Sources
Census data on population/demographics/journey to work
Employer data
Travel model analysis
Future projections of population/employment/development
g route data
Existing
Total ridership on the route
hou
Ridership per hour
Ridership by time of day
Ridership by route segment
segmen
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Primary Sources: Techniques to Develop New Information
Information
Focus groups
Stakeholder outreach
Public outreach
Ride checks
Transfer analyysis
Rider surveys
Consumer Panels
Non-rider surveys
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Stakeholder Outreach
Outreach
Transit
a s t aagency
ge cy
management/board/drivers
Political leaders with an
interest
Business leaders/ Chamber
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Human services reps
Rider reps
City/town planners
MPO
Public Outreach
Outreach
Open advisory group sessions
Public hearings
Public workshops
Media events
g with feedback
Web pages
Online surveys
Neighborhood meetings
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Transfer Analysis
Analysis
Pass data from fareboxes
Paper transfer data from fareboxes
In Hartford, found more than 50% of riders were
transferring in downtown.
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Rider Surveys
Surveys
Measure satisfaction
Demographics
Trip purpose
Frequency
ge
Desire for chang
Specific actions
$15-$25
Typical costs $15
-$25
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Example:Value of Transit
A
Amenities—TCRP
iti
TCRP Report
R
t 46
46
Benches
A i l infformatiion
Arrival
Shelters
Low floors
Seats with padding
Luggage racks
Consumer Survey Panel
Panel
• Can be a very quick and cheap • Example: TCRP Report 123 way to
t gett feedback
f db k
on Mode
M d and
dR
Residenti
id tial
l
• Use of web survey software
Location Choice
lik S
like
Survey Monkey.
k
Used the NJTransit Commuter
Rail Survey Panel and
• Participation can be increased
by using rewards.
rewards
A natitionwid
ide panell to gett
complex information on mode
• Can undertake complex
choice and residential location
questions
tradeoff questions.
choice.
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Non Rider Surveys: Phone Surveys
Surveys
Typical costs $45-$65
Public attitude toward transit
Likelihood of riding
Improvements desired
gness to payy
Willing
Market segmentation
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Market Segmentation
Segmentation
TCRP Report 36
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Market Segmentation
Segmentation
TCRP Report 36
Marketing and Market Research in Public Transportation
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The Marketing Process
Process
Customer comments/
customer satisfaction
Other idea sources
Goals
Idea (new route, fare,
service marketing approach)
ideas from
peers
CREDIT CARD
www.Bankname.com
1233 5673 8765 9876
MONTH/YEAR
MONTH/YEAR
VALID
UNTIL
05/15
05/10
FROM
END
CARD HOLDER NAME
Market Research:
Gather data on market
(from customers, available
data, market research)
Bankname
Customer purchase decision
Implement plan with
improvements and
communication
goals,
service d
efin
sales app ition,
roach
Develop
marketing plan
promotion,
& support
service design
Develop
service plan
Figure by MIT OpenCourseWare.
Marketing and Market Research in Public Transportation
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Designing the Service
Service
Simple and as direct as possible.
At least hourly service for urban areas, half hour to attract
choice riders.
Clockface headways if possible.
Clean, safe, attractive facilities and vehicles
Make fare payment easy
Make
schedules
understandable
a e sc
edu es u
de sta dab e
Make it nice enough for your mother to approve
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The Marketing Process
Process
Customer comments/
customer satisfaction
Other idea sources
Goals
Idea (new route, fare,
service marketing approach)
ideas from
peers
CREDIT CARD
www.Bankname.com
1233 5673 8765 9876
MONTH/YEAR
MONTH/YEAR
VALID
UNTIL
05/15
05/10
FROM
END
CARD HOLDER NAME
Market Research:
Gather data on market
(from customers, available
data, market research)
Bankname
Customer purchase decision
Implement plan with
improvements and
communication
goals,
service d
efin
sales app ition,
roach
Develop
marketing plan
promotion,
& support
service design
Develop
service plan
Figure by MIT OpenCourseWare.
Marketing and Market Research in Public Transportation
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Purpose of Transit Marketing
Marketing
Telling customers about a
new serviice or featture
Help customers to
understand how to use
the service
Increase the stature of transit Marketing and Market Research in Public Transportation
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Telling Customers about Service
Service
Maps
Schedules
Schedules
Newspapers & flyers
Web pages
Direct mail
Press releases
Partner with radio/TV
New media
Facebbookk
U-Tube
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Helping Customers to Use Transit
Transit
Werner Brog—Individualized marketing programs
Surveys to
S
t determine
d t i interest
i t
t
Those interested are given information and an incentive
Analysis of travel diary to offer suggestions
suggestion
Travel training
Using transit 101 on U-Tube
U Tube
Designing services that are easier to understand
Making it easy to pay the fare (universal passes/free fare)
Real time information about schedules
Making sure customers feel safe
saf
Insuring customers are not stranded
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Communicating the Value of Transit
Transit
APTA’s Campaign to Increase Transit’s Stature
Advertisements on Marketplace (public radio)
Print ads emphasizing benefits
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Example: Adelaide Market Research & Trials
Trials
Non-users didn’t use transit because of
Lack of knowledge
Genuine issues with level of service—”it doesn’t’ go where or when
I want to go””
Fear of not being in control
Poor image of the product
Perceived person security issues
Non-users were more negative than users
Marketing and Market Research in Public Transportation
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Example: Marketing to Business
Business
Tax incentives
Help in jobs access programs
Advantage of saving on
p
g
parking
Can contribute to clean
air programs
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Organized by employers;
Employer associations
like TMAs; and
Third party organizations
like TransitChek and
many others
Examples of Transit-to-Business Marketing Programs
Programs
On-site pass sales
Pass subsidies
EcoPass
Vouchers
Employee surveys
surveys
Carpooling/ vanpooling
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Shuttle services
Access to jobs
Reverse Commute
Relocation help
Guaranteed ride home
home
Employee transportation
di t
coordinators
Employer Pass Programs
Programs
Example: Albany
New York
Example of typical
results: SEPTA survey of
Compass users
ComPass
C
P
use increasedd
transit for work for 19%
ComPass use increase
increased
transit for non-work 32%
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Results-TransitChek
Results-TransitChek
TransitChek: Early results 1989
Transit use increased by 16%
Auto use decreased by 17
17%
GAO study of federal employees showed 21%
mod
de shift
hift
TCRP Rep
port 107 analyyzes manyy syystems’ results.
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Guaranteed Ride Home
Home
An inexpensive program
which
hi h helps
h l with
ith less
l
flexible services
Vanpooling
Subscription bus
Scheduled bus
The Marketing Process
Process
Customer comments/
customer satisfaction
Other idea sources
Goals
Idea (new route, fare,
service marketing approach)
ideas from
peers
CREDIT CARD
www.Bankname.com
1233 5673 8765 9876
MONTH/YEAR
MONTH/YEAR
VALID
UNTIL
05/15
05/10
FROM
END
CARD HOLDER NAME
Market Research:
Gather data on market
(from customers, available
data, market research)
Bankname
Customer purchase decision
Implement plan with
improvements and
communication
goals,
service d
efin
sales app ition,
roach
Develop
marketing plan
promotion,
& support
service design
Develop
service plan
Figure by MIT OpenCourseWare.
Marketing and Market Research in Public Transportation
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33
Putting Results Together
Together
Project for VIA in San Antonio
Objective to show cost effectiveness of different transit
improvements
Combined in a spreadsheet model for VIA
Multisystems with Mark Warner
Warne
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VIA Ridership Model
Model
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VIA Ridership Model
Model
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VIA Ridership Model
Model
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The Impact of Frequency Improvements
Improvements
Response varies widely
Average elasticity (percent increase in ridership due to a 1%
percent increase in service was around .5
In some rare instances have elasticity greater than 1. Experience tends to be in two clusters—around 1 and around
d 0.3.
03
Ridership is more sensitive in off-peak, when service has
been less frequent,
f
i middle/
iddl /upper income areas.
and
d in
Extended evening service may add more riders to daytime
service than can be seen on the evening service.
Australian findings of value of weekend service.
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Example: Trimet (Portland OR) Frequent Service Initiative
Initiative
Program increased frequency
on major
j b
bus lines.
li
frequency adjustments coupled
with improved amenities and
improved customer information
systems.
extensive marketing
g and promotional effort. Courtesy of TriMet. Used with permission.
Marketing and Market Research in Public Transportation
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The Marketing Process
Process
Customer comments/
customer satisfaction
Other idea sources
Goals
Idea (new route, fare,
service marketing approach)
ideas from
peers
CREDIT CARD
www.Bankname.com
1233 5673 8765 9876
VALID
FROM
MONTH/YEAR
MONTH/YEAR
UNTIL
05/15
05/10
END
CARD HOLDER NAME
Market Research:
Gather data on market
(from customers, available
data, market research)
Bankname
Customer purchase decision
Implement plan with
improvements and
communication
goals,
service d
efin
sales app ition,
roach
Develop
marketing plan
promotion,
& support
service design
Develop
service plan
Figure by MIT OpenCourseWare.
Marketing and Market Research in Public Transportation
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40
TCRP Research: Customer Satisfaction Index
Index
Rider survey to gather phone numbers
Telephone follow-up
Measured how satisfied people are overall
Measure satisfaction with particular issues such as safety,
comfort, convenience, performance/reliability, ease of using,
condition of vehicles and facilities, value of service
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Computation of Impact Scores
Scores
Suntran (Albuquerque NM)
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Comparison of Situations
Situations
Sun Tran top attributes
Frequency of service on weekends
Hours off serviice duriing
weekdays
Frequentt serviice
Reliable buses that come on
schedule
Short wait time for transfers
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CTA Rail top attributes
Trains that are not overcrowded
R li bl traiins that
Reliable
h come on
schedule
Frequent
F
t service
i so waitit tiimes
are short
effectiveness Cost effectiveness,
affordability, value
Availability of seats on the trai
train
Typical Budgets
Budgets
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Conclusion
Conclusion
The most successful transit agencies have figured out h to
how
t communicate
i t with
ith Stakeholder
St k h ld and
d the
th public—
bli
they have succeeded in convincing these of the value of
t
transit.
it
There is widespread cutting of service in these tough
times—30% cuts in some places.
Still over 70% of the referendums in November of 2008
were successful.
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MIT OpenCourseWare
http://ocw.mit.edu
1.258J / 11.541J / ESD.226J Public Transportation Systems
Spring 2010
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