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Author: Ana Stanca
Demand Generation Leader, Enghouse Transportation
A Proven Strategy Enters the Transit Arena
Four decades after American Airlines started its landmark frequent flier program, businesses from pizza restaurants to hotels now offer loyalty rewards to customers to keep them coming back.
And now that concept is making its way to the transit industry.
The Rise of Rewards in Public Transit
“Rewards programs can definitely work in transit,” said Toofan Otaredian, VP of Sales for Enghouse Transportation. “The more incentives you offer the more likely you are to gain more riders,” he added.
Case Study: BART’s Off-Peak Incentives
One of the first transit agencies to use rewards was San Francisco’s Bay Area Rapid Transit (BART) system, which started offering small cash rewards to commuters who opted to travel at less congested, off-peak hours. BART reported that 10 percent of its riders shifted to off-peak hours.
Innovative Partnerships in Portland
In Portland, Oregon, the city’s bike-share system worked with a startup called Validated to offer credits to users who made purchasers at retailers like Portland Gear and Green Zebra Grocery. Credits can be used for overage fees and annual memberships.
Portland TriMet is another transit looking at rewards programs.
“We see the value of what it could bring, not only keeping our own riders coming back but attracting new ones,” said TriMet’s J.C. Vannatta, who heads up the agency’s marketing and communications.
Technology Integration in Transit Systems
Otaredian says the Enghouse open loop fare system solution can support features such as rewards programs and real-time traveller information.
“Commuters need to know an estimated time of arrival for their train or bus. Our solution can also provide account information, such as how much they are spending on their commute,” he said.
Leadership in Transit Innovation: King County Metro
King County Metro in the Seattle area is a leader in the rewards area, winning the American Public Transit Association’s (APTA) 2023 Innovation Award for its Transit GO Rewards program.
The Transit GO Rewards program allows riders to earn rewards that save on their next trip. The program was initially launched in partnership with the Seattle Department of Transportation to encourage transit and other types of mobility modes for West Seattle residents struggling with the West Seattle Bridge closure. Transit GO Rewards is a web app folded into the Transit GO Ticket, King County’s regional fare payment platform.
“King County Metro delivers a world-class transit system, which requires innovative, flexible thinking – and that is what’s driven the success of Transit GO,” said Executive Dow Constantine. “With incentives to use the many available transit options, riders can earn rewards for their future rides while reducing their carbon footprint. We thank APTA for this award and are honoured to receive it.”
The Future of Transit: Meeting Commuters Where They Live
Kevin Tucker, principal research director at Info-Tech Research Group, says transits need to reach commuters where they live, whether with rewards program or real-time information.
“The modern passenger uses social media platforms for professional tasks and leisure activities. They expect to have socially immersive experiences that are delivered live and on demand. In every stage of their journey, passengers also expect immediate access to information throughout their travel experience,” he said. “The complexity lies in the context, as information and entertainment providers need to consider the contextual needs of each passenger. The more personalized and contextually relevant the social interactions, the greater the customer loyalty.”
Encouraging Greener Choices and Enhancing Rider Experience
As transit agencies continue to innovate, the introduction of loyalty rewards programs presents a unique opportunity to not only enhance the rider experience but also promote sustainable travel habits. By rewarding riders for choosing greener alternatives, agencies can play a crucial role in environmental stewardship while improving urban mobility.
Take Action
If you’re interested in seeing these benefits in your community, start by supporting local transit initiatives that offer or are considering reward-based programs. Encourage your local transit authorities to explore these innovative solutions by attending city council meetings or reaching out directly to transit officials. Additionally, consider utilizing transit options that offer rewards to make your daily commute more rewarding and environmentally friendly.
Join the movement towards a more connected and sustainable transit future. Every ride counts!
Contact us today to explore how we can assist you in detail with everything you need to know about implementing effective transit solutions.
