Marketing: Think Outside the Box
By Mark Foss
Many years ago, while I was still working as a transit operator, I drove a bus route that passed through SeaTac International Airport. It picked up commuters, shoppers and visitors to Seattle. The visitors usually came with huge bags and a thousand questions — about hotels, museums, landmarks and bus routes. Some questions I could answer easily. Some questions I couldn’t answer or didn’t have time to sort out the answer — after all, I was driving a 60-foot bus with 50 to 60 other passengers.
Who are a transit system’s customers? This might seem like a simple question. Customers are the ones using the system — right? Some customers are easy to identify. They live and work in our communities. Transit systems are usually good at identifying these customers — commuters, the disabled, seniors, shoppers and students to name a few. These customers are generally local people who know something about the city, their neighborhoods and streets. Visitors don’t know the geography or the transit system. Often they don’t even know the language.
What difference do visitors make to a transit agency that serves local people? Let me approach it this way. Visitors to Washington State spent $14 Billion in 2009. Visitors to California spent $97.6 Billion in 2008. In Georgia, U.S. travelers alone spent $19 billion. In the state of Virginia, domestic travel expenditures in 2008 totaled $19.2 billion, of which $2.76 billion were for public transportation (The Impact of Domestic Travel Expenditures on Virginia Counties 2008, p.13.
As I have surveyed the various Web sites of transit agencies, I have noticed only scant attention to the visitors and tourists. There is some attention. Minneapolis-St. Paul’s Metro Transit lists Twin Cities’ attractions on its Web site. However, these Web links go to the Web pages of the various attractions without telling what transit service might serve that location. New York’s MTA has an advertisement for getaways on the Long Island Rail Road. But even this seems to be an exception. Mostly visitors are helped passively.
Let me make an observation that I hope will stir conversation. Most of what passes for marketing in transit agencies is only a subset of marketing — it is mostly publicity and sales. Of course, the local transit market is segmented. Agencies create many different kinds of fare media and target various market segments with advertisement — especially commuters. Sales channels are developed for these customers. But there doesn’t seem to be much creative definition of new market segments. I suspect this is organizational myopia. With budgets under pressure, I also suspect that marketing may take a back seat to other issues. Cutting marketing without careful consideration would be a mistake.
The marketing concept is that an organization should try to profit by serving the needs of customer groups (Peter, P., Donnelly, J., A Preface to Marketing Management, McGraw-Hill, 2006). Although a public transit agency doesn’t seek to “profit,†it does seek to “increase ridership.†A focus on customer needs is crucial. It isn’t the products offered or the means to attract customers that should drive this focus. It is the customers’ needs. If it doesn’t meet customers’ needs, they won’t use it. This is true when trying to keep current customers and true when trying to attract new ones.
Incremental gains from the farebox are increasingly important in light of budget problems. Every paying customer represents a little more revenue. New market segments are very important. However, publicity alone isn’t enough. Marketing of transit services should be systematic, targeted and evolving. Tourists and visitors comprise a good segment to target.
Think outside the box.
Mark Foss has more than 24 years experience working for King County Metro Transit. His experience includes work as a bus operator, special ridership coordinator in accessible services and 1st line transit supervisor. Currently, he works as a communications coordinator in the transit control center (TCC).