The relationship between Ridership & Fare Collection Anjana Mohan

Transcription

1 The relationship between Ridership & Fare Collection Anjana Mohan Bi-State Development, Deputy PM AFC Saint Louis, Missouri

2 Key Presentation Take-Aways Clarify Agency priorities Identify service features that attract & sustain riders Pinpoint opportunities for Fare Collection to enhance the customer experience Encourage inter-disciplinary conversations regarding those features Recall the larger picture regularly at meetings

3 Unclear Agency priorities make it easy for projects to fail? Revenue

4 Clear Agency priorities make it easier for any single project to succeed OPTIMIZE RIDERSHIP AFC Initiative MAXIMIZE REVENUE PROVIDE QUALITY SERVICE

5 Fare Collection Strategy is integral to customer perception Customer s first interaction Fare Collection can be Easy Seamless Inviting Fare Collection Familiar Convenient

6 Attracting New Customers Transit dependent customers are ALREADY riding transit Choice riders must see transit as a VIABLE alternative Fare Collection must be inviting & seamless (especially when they try out transit)

7 What are new customers looking for? Comparing transit to alternatives Car Private vehicle Shared transport Uber, Zip Car etc. Payment familiarity, predictability & ease

8 Making transit competitive & The role of Fare Collection Flexibility - Precise Origin & Destinations Convenience - Availability & Reliability Speed - Travel Time / Sense of Control Predictability - Geographic Tools, Payment, Signage Travel Costs - Real & Perceived

9 FLEXIBILITY Origin, One or more destinations ROLE OF FARE COLLECTION IN COMPETING WITH ALTERNATIVES Seamless Multi-modal access Easy, quick, consistent & single payment system for bus, train, bike etc. Fare structure must support transfers Simplify fare structure to enable best fare Enable Hop on Hop off Routes must be relevant with TOD AVL & Stop enriched fare data can inform Route Planning

10 CONVENIENCE Availability, Reliability, Travel at-will ROLE OF FARE COLLECTION IN COMPETING WITH ALTERNATIVES Need based service planning & schedules Schedule based fare and ridership data can inform service planning Increase reliability with On-Time Performance Integrating APC, AVL & Fare data can be informative about OTP Real Time Schedules availability to customers Mobile apps for fare collection should integrate Real Time info

11 SPEED Travel time / Sense of control ROLE OF FARE COLLECTION IN COMPETING WITH ALTERNATIVES Transit is fast & predictable Spatial fare and ridership data can enhance Route Planning On-Board loading or other fare collection may affect OTP Transit commute time is usable Mobile apps for fare collection should integrate Real Time info

12 PREDICTABILITY Travel time / Sense of control ROLE OF FARE COLLECTION IN COMPETING WITH ALTERNATIVES Trip Planning Apps & Street View Mobile Apps for fare collection may integrate comprehensive Transit Account Management Signage, Wayfinding & Design of bus stops, transit plazas, stations Fare collection initiatives may offer opportunities for re-branding

13 TRAVEL COSTS Real & Perceived comparisons COST OF TRANSIT ALTERNATIVES Transit costs typically are add-on But private vehicle costs REDUCE with each transit use Govt. reimb. rate = 0.54 /mile NOT including parking, tolls, depreciation Trips are perceived as free Lump sum and aggregated costs are considered inevitable Per trip transit costs compare favorably Vehicle Insurance 12% Repair, Maintenance 10% Gasoline, Oil 17% Finance Costs 5% Vehicle purchase, lease, license, other 56% Using transit lowers Gasoline & Oil Costs Repair & Maintenance Vehicle Insurance Environmental impact

14 TRAVEL COSTS Real & Perceived comparisons ROLE OF FARE COLLECTION IN COMPETING WITH ALTERNATIVES AFC encourages aggregation & suspension of belief re. costs No need for cash or exact change Load up once (like fuel) and spend as you go / need Automatic recharge reduces deliberate thought Fare Policy can facilitate perceived value & peace of mind Daily maximums / caps assure predictability Transfer policies, hop-on-hop-off, Peak & Off-Peak pricing, Loyalty programs Integrate Employer Benefits Reduces out of pocket costs and avoids uncertainty of reimbursements Fare payment interface must be smooth & inspire confidence

15 Customer Friendly AFC Opportunities Remote / Mobile travel management Website purchasing, Mobile ticketing Travel & Usage review Account & recharge management Payment flexibility (Credit, Paypal) Account History Family cards management Reporting loss or theft Activating or deactivating cards Customized / Relevant information Setting up profile (or Real time integrations) for alerts Tangible piece of Civic ownership / pride

16 Fare Collection & Ridership Perceived & Real Cost Reductions & Flexible fare structure Transfer policy, best fare, capping or maximums, loyalty programs Convenient service schedules & routings Integrated Fare, Ridership, AVL, APC data can inform Route Planning Sense of autonomy, control and predictability Mobile transit-management app with payment, real time info, alerts, trip planning etc. Plan a trip Pay fare My Transit Mobile App Find my bus Manage Fare Visibility and perceived accessibility of transit Fare Collection initiatives offer re-branding and updates to wayfinding Perceived Value My Alerts History

17 New Fare Collection Initiatives = Opportunity to re-brand & re-think transit Inter-disciplinary endeavor requires engagement of many stakeholders Best practices must include: Fare Policy changes Investment to ensure actionable data Extensive customer communications Customers = Riders, Taxpayers, Local leaders Interdisciplinary discussion, buy-in & ownership Actionable feedback loop Requires tiered & multi-dimensional leadership of adaptive change

18 Commuter Debit Card Compliance and Customer Service Meltem Korkmazel Chief Operating Officer Edenred Commuter Benefit Solutions

19 LA Metro's Quick Recipe for a New Customer Relationship Management (CRM) System Robin O Hara Los Angeles Metro Deputy Executive Officer Regional TAP Program Los Angeles, CA

20 Customer Relationship Management System (CRM) Recipe

21 Crème de la CRM: Step 1: Look for menu shortcuts Background: Existing CRM contract expiring Looked for existing in-house procurements that could shorten timeline. Used an existing contract with Salesforce. Saved months of procurement time/expense. Did our homework on vendor. Used current contract end to expedite speedy implementation.

22 Step 2: Know the recipe. Image credit: Know what to expect Know what you don t want We wanted more control We wanted less reliance on outside sources CRM set up to manage all our customer touchpoints

23 Step 3: Prepare ingredients properly. Involve all parties early 10 Metro departments would inherit new functions Frequent meetings enabled all departments to participate Agile development process was introduced Tips: Focus on priorities. Keep moving forward. Repeat.

24 Step 4: Test the batch. All departments test New processes necessary Train the trainers Internal and external testing

25 Step 5: Set the timer. 7-month implementation Stuck to timeline and multi-tasked Perfection strived for, but not waited on Finished before expiration of out-ofhouse vendor contract

26 Step 6: Bake and ENJOY! New system completed 8/25/16 TAPForce will continue to evolve Test it yourself at taptogo.net

27 New Trends in Fare Structures Low Income Fares Rick Halvorsen LTK Engineering Services Senior Revenue Systems Consultant Seattle, Washington

28 Key Presentation Take-Aways Serving Current & Potential Customers Environmental Justice Requirements No one way Eligibility determination is key issue Multiple risks Potential for major revenue impact

29 Why Low Income Fares Serving customers High costs of transportation Issue of affordability during fare increases Reaching new customers Environmental Justice Requirement State Law

30 Traditional Support Programs Providing funding or transit fare products to non-profits and community organizations Allows transit agencies to focus on providing transit rather than identifying which individuals qualify for assistance

31 What is low income? Percentage of federal poverty level Denver 150% King County Metro 200% Local standards Eligibility for specific federal, state or local programs

32 Administration of Programs Eligibility Determination Existing aid program Contract with a 3 rd party In-house process

33 Administration of Programs What Discounts Are Provided Same as Senior / Disabled riders Reduced cash fare with Special ID Specially sold discounted passes Coupons to reduce cost of passes Special Smart Card

34 Risks Accurate understanding of income Changes to income Use by other individuals Liability related to personal information

35 Rhode Island Public Transit Authority Initial State Law mandate Free fares for low income S/D Impact was no revenue from 22% of all peak trips 31% of all off-peak trips Now slow increase in low income S/D fares

36 King County Metro ORCA Lift Introduced 2015, expanding in Detailed implementation plan Contracted eligibility determination Distinctive Smart Card Discounted E-purse fare or pass Impacts

37 Los Angeles County Metropolitan Transportation Authority Coupons for discount on pass prices Available for full and reduced fare riders Contracted eligibility determination Serves 55,000 participants $4.5M total subsidy Expanding marketing and outreach efforts

38 Key Presentation Take-Aways Serving Current & Potential Customers Environmental Justice Requirements No one way Eligibility determination is key issue Multiple risks Potential for major revenue impact

39 Contact Information Rick Halvorsen LTK Engineering Services Senior Revenue Systems Consultant Seattle, Washington (206) (ext. 1791)

40 Seizing the Opportunity to Build Loyalty through Fare Collection Pepper Harward RouteMatch Software

41 Loyalty Loyalty is the willingness of someone a customer, an employee, a friend to make an investment or personal sacrifice in order to strengthen a relationship.

42 The Evolution of Loyalty Programs Loyalty program rewards transactional behavior Loyalty program fosters emotional connection from making a difference

43 How Did It Happen? B BUY 1980

44 From Buying to Promoting Transactional loyalty programs need to be enriched through a personalized approach that adds depth and meaning to the relationship with the customer

45 How Did It Happen? B BUY P PROMOTE

46 From Promoting to Engaging Customers want to be rewarded by the companies they purchase from but are not always sure what they want their benefits to be. But doing things that help them feel they are making a positive difference can be as motivational as the cost savings or the positive attributes of the goods

47 How Did It Happen? B BUY P PROMOTE E ENGAGE

48 Loyalty Programs that Reward feel good activities 87% of consumers say they would join a program that offers points for such activities 84% say they would spend more with partners who offer such programs 28% have already switched their spending from purchase only rewards programs

49 What Specifically Drives Engagement? While consumers like discounts, they are even more interested in incentives for: 1. living a healthier lifestyle 2. sharing on social media 3. participating in social responsibility programs 4. practicing energy conservation

50 1 H HEALT H Sustainable exercise routine.

51 2 P PLANET Clean environment.

52 3 S SOCIA L Supportive relationships.

53 4 I INCLUSIVITY Dignity. Freedom. Opportunity.

54 Forward Thinking Concepts Payment platform should extend to social media Payment platform should consume and contextualize external data Payment platform should consider more robust validation methods Payment platform should allow for gifting or transferring of value

55 Separate but equal? One app. One rider experience.

56 Payments are about options Flexibility with Partnerships Flexibility with Options

57 Payments Are About Community