“Transport companies are no longer faceless entities solely concerned with getting people from A to B,” comments Mr Gallagher. “They are making efforts to engage with their riders, who, by the way, are increasingly referred to as ‘customers’ rather than ‘commuters’ or ‘passengers.’”
One wonders, nevertheless, if these ‘customers’ are aware of how their personal data is being used, i.e. to serve them better, and sell them more? “They are generally not thinking too much about this,” reckons Mr Gallagher. “Plus there’s always the opportunity to opt in/out so that your smartcard either remains ‘anonymous’ or becomes ‘personal.’”
It’s true that in our everyday lives, acceptance of ‘surrendering’ our personal details really depends on what stands to be gained. “If there are benefits, attitudes change,” points out Mr Gallagher. “People do the equation, subconsciously most likely, then decide whether or not to opt into the services on offer.”
He agrees that millennials, in particular, are less likely to have an issue with such personal/privacy matters, given that they have grown up in a world of social media, connected devices, and mobile phones, where sharing personal information is seen less of an intrusion, less Big Brother, and more of a lifestyle choice. Nevertheless the bottom line remains the same – there has to be a clear value equation, namely ‘I gain more than I give up.’
Rewarding loyalty
In some of its most recent projects, Vix has leveraged emerging technology in open payments and loyalty rewards programmes to help transport operators boost passenger numbers and satisfaction.
The Rabbit smartcard, introduced for use across Bangkok’s pt systems in 2012, is a closed loop scheme whereby the transit e-purse can be used for other purchases at convenience outlets and vending machines, typically located in the vicinity of stations and stops.
Rabbit cardholders can join a ‘Carrot Rewards’ loyalty programme, offering points redeemable for gifts and privileges. ‘Carrots Rewards encourages increased customer spending and frequency’, says BSS* (Bangkok Smartcard System Company Ltd), the company running Rabbit. In action for around 12 months, has the programme made a difference? “I’m not sure how it is impacting ridership figures, because, of course, there are other factors influencing the use of pt,” admits Mr Gallagher. “Yet while such an offering has yet to be proved a game changer, it is definitely positive in terms of customer engagement. It also demonstrates the good will of the operator and boosts the brand image, plus it doesn’t cost much to implement.”
On the move, on the mobile
The rise of the smartphone is certainly altering the passenger-operator ‘relationship’, and the kinds of added value that can be proposed. However “we’re only now on the verge of big change,” believes Mr Gallagher, pointing out that while m-ticketing “has become strongly prevalent in the last couple of years for intercity journeys, for the time being it remains less so for urban travel.”
Having said that, “I’m very surprised at the rate of city m-ticketing uptake by the ‘occasional’ traveller.” he adds, stressing that mobile is a great way of approaching the visitor to a city, for whom the ability to download an application, then have their pt ticket delivered to the phone, represents an attractive proposition – overcoming language, ticket machine and currency barriers. “Furthermore, if the app can also remember details then recall them on a repeat trip to that city, pushing this kind of information is likely to be welcomed, rather than considered intrusive.”
Vix Technology is behind an open system for m-ticketing in Rome. For pt authority ATAC it has delivered the back office infrastructure, libraries for third party ticket vendors, a mobile phone app for revenue officers, and validators across the network that enable the existing system to integrate with newly selected, third party ticket suppliers.
“The Vix AFC system in Rome uses the same software as those in Bangkok, Beijing, Stockholm, and Seattle, where just as we have done in Rome, our partnership approach is helping operators to upgrade their existing systems with flexibility, scability, and reliability,” says Mr Gallagher.
*part of BTS Group Holdings, with Bangkok Bank as financial partner