How the transport matrix is being reshaped by the consumer’s changing

expectations and behaviour

By Peter StonhamEditorial Director

New Transit / Travel 2020

EVERYTHING’S CHANGINGRESISTANCE IS FUTILE!

A bit of background…

• I am the Editorial Director of Landor Links

• LTT/New Transit/Travel 2020

• A focus on the future and what is changing many of the things we’re used to, and how professionals can respond effectively

Issues include…

The buying decision

PassengerInformation

Communicationstechnologies

And NEXT MONTH…!

What I think is the key issue to address in thinking ahead:

How the transport matrix is being reshaped by the consumer’s changing

expectations and behaviour.

In a nutshell…• Customers are not loyal, unless they benefit from

being so• Information is power. Consumers have more of it at

their fingertips than ever before. And share it.• Suppliers don’t know their customers as well as they

think they do.• Suppliers are behind the game and constantly being

overtaken by the consumer.• Trying to control the customer is a mug’s game.

– even when you have their best interests very much at heart.

3 different views of the travel proposition

• Supplier’s view“These are our services”“Our next bus runs past here in 2 hours” (if you’re lucky)

3 different views of the travel proposition

Customer’s view“I have an idea of what I want, but I’m not

sure what’s available. Help me choose”.

“I am prepared to modify my plans when I know what choices are available, and the price etc”.

3 different views of the travel proposition

• Intermediary’s view“We have studied what’s available and we

think we can help you in choosing”.

“We would like you to make your buying decision through us and we will deal with the supplier on your behalf”.

It’s all about who the customer can trust.

• Does the operator or the intermediary have the customer’s best interests at heart?

• What are the hidden agendas?

• Do the operators really think with a customer’s perspective?(and honestly, do public authorities either?)

Customers now have the power to change things

Old thinking vs new thinking

• Supplier“How do we provide information without

spending too much money?”

“Why should we care if the customer doesn’t get the best deal as long as they’ve bought from us”.

Old thinking vs new thinking

• Customer“These guys have let me down - and I’m going

to make them suffer”

“I will find a better alternative”

Old thinking vs new thinking

• Intermediary “Hey, there’s a role we can play, and make

money from, by helping the buyers without having to be the provider”.

The role of the intermediary

• Trusted• Comprehensive info• New connections• Current and immediate• Single transaction• Open to feedback• Journey’s friend…

Technology makes all this possible

Technology makes all this possible

• Connectivity

• Instant data

• Ability to alert

• Smart transactions and payment

• Helpline thinking

• Alternative solutions

• Loyalty and compensation

Technology makes all this possible

• Connectivity– Mobile phones– GIS– Tracking

Technology makes all this possible

• Instant data– Digital information– Machine to Machine– Analysis and display

Technology makes all this possible

• Ability to alert– Messages– Linked activities– QR codes– Learnt behaviour and choices

Technology makes all this possible

• Smart transactions and payment– Contactless cards– NFC– EMV– Customer accounts– Credit– Billing

Technology makes all this possible

• Helpline thinking– 24/7 contact– Travel tracking– ‘Advise and adjust’

Technology makes all this possible

• Alternative solutions– Not just one supplier relationship– Not just one mode– Interchange and connection help– First and last mile answers

Technology makes all this possible

• Loyalty and compensation– We know your activity– We know you are a regular user– We know we messed up– We can make new connections for you

How can we get everyone on board to the new paradigm?

• If it works in London then why not elsewhere?

• Can we get all the operators on board?

• We have the technology, but how can we change the view on commercial relationships?

The information challengeChoices to make

• A comprehensive publicly provided service?

• An commercial information marketplace?

• Public or personalised information?

The payment challengeChoices to make

• There and then, with a pre-pay card?

• Afterwards, on the basis of what you’ve used?

• A common ‘ticket’? How can we justify multiple transactions in the modern world?

Other things to remember…

• Today’s consumer requires an interactive and sequential way in which to assess and refine their options.

• In the age of the smartphone you can assess the GIS location for travellers.

• Based on their location you can propose alternative suitable destinations or activities (e.g. eating, shopping, accommodation, entertainment)

• And they should be able to buy it there and then with their smartphone, too!

A world of opportunities to make a better offer!

(and make the best of the existing offer)

So what will come next?

• Oyster is brilliant, but the next generation is already arriving.

• What will it be? Debit/credit card based? Mobile phone based? A combination? NFC / EMV / QR Codes?

Who will be trusted in the future?

• Digital consumer giants? (Apple, Ebay, Google)

• Smart technology systems? (Cubic, Thales, Trapeze, Vix)

• The motor industry? (Mercedes, BMW, Ford)

• Public bodies? (TfL, PTE’s, Traveline)

• The transport operators?

2020 Vision

• Who will be in the driving seat in 2020?

• Probably someone we haven’t yet imagined.

Did you see the following coming?

• Google search

• Contactless smartcards

• Mobile phone payment

• Facebook

• Twitter

Thank you!

Feedback and ideas welcome!

stonham.hastings

@landortravelpublications.com