Feb 29, 2012

Presented by

Priya Bhasin-Singh, Strategic Marketing Associate

priya.bhasin-singh@edmonton.ca

Driving Ridership Strategic Partnerships

& Communications Conference

2012 APTA Marketing

About Edmonton Transit System (ETS)

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

2

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

Priorities “What are our top objectives?”

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

Research & Development “How do we reduce customer attrition?”

Research & Development

7

Now what?

Researched Internal Solutions

Not enough resources.

Approached by 3rd Party Pushing Green Agenda

Low market penetration and awareness.

3rd Party Acquired by AIR MILES® reward miles

Eventually Fall of 2009, ETS Partners with AIR

MILES® reward miles

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.

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.

Who is AIR MILES® reward miles?

9

AIR MILES® Collector Demographic Profile

Who is AIR MILES® reward miles?

10

Strategy “Developing the action plan!”

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

Loyalty Program Deployment

12

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

Product Loyalty Schemes

13

What do the base ETS offers look like?

Product Loyalty Schemes

14

Promotional “Bonus” Offers

In 2011, ETS ran 4 “bonus” offers.

“Earn 2x AIR MILES® reward miles on an Adult

Monthly Pass”

April

July

September

December

Product Loyalty Schemes

15

Results “What do the numbers show?”

Case Study

January - April 2011

AMP Sales ↑ 20-25% compared to same period in 2010.

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

260

280

300

320

340

360

380

2010 2011

Year

AM

P s

ale

s

Jul-10

Jul-11

What do the numbers show?

17

New Opportunities “How can we grow our partnership?”

Fall of 2011, 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”

A New Partner: Safeway

19

Safeway Outlets AMP Sales

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

Sep-

10

Oct-

10

Nov-

10

Dec-

10

Jan-

11

Feb-

11

Mar-

11

Apr-

11

M

ay-

11

Jun-

11

Jul-

11

Aug-

11

Sep-

11

Oct-

11

Nov-

11

Dec-

11

Jan-

12

Feb-

12

Month/Year

Un

its

So

ld

AMP Sales

Adult Monthly Pass Sales at Safeway Retail Outlets

October 2011 AMP Sales ↑ over 1000 units compared to Oct. 2010 sales.

February 2012 AMP Sales ↑ 3829 units compared to Feb. 2011 sales.

Results of Safeway Partnership

20

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.

Key Takeaways

21

Thank you Questions?”

Priya Bhasin-Singh, Strategic Marketing Associate

priya.bhasin-singh@edmonton.ca