Technology
Anna Holness says the rise of the digital passenger is a great opportunity for the rail industry to personalise its offerings
T
he rise of mobile technology and social media means that consumers today have never been more connected or influential.
We live in a world where many people are growing accustomed to working, shopping or keeping in touch from anywhere, at anytime. With smartphone penetration expected to reach 90 per cent in the next three years and the advent of mainstream 4G services signalling a much faster mobile experience, this rise of the digital consumer is only set to increase.
The challenge
In the rail sector this trend is already having an impact. Passengers using connected devices can choose how and when they interact with rail operators and expect instant gratification, which usually means a quick, convenient online service – whether to check for disruption to their services, timetables or to book tickets. Customers are more likely to take recommendations via social media channels before deciding which travel operator to use and which to avoid. They are also more likely to trust
other passengers as a source of information - for example around disruption - than they are official sources. For rail operators, further competition from alternative travel options like low cost airlines and coach operators is a challenge. At a time when consumer spending is down, these alternatives are more attractive, adding pressure to find innovative ways to retain existing and attract new customers. The evolution of digital and mobile technology has sparked a power-shift between businesses and consumers, for rail operators this means their passengers are more in control than ever before. I believe there are three crucial challenges for the rail sector. Firstly, a 24/7 connected world means customers expect an instant response. Secondly, more choice for consumers means more power in their hands and increased competition in the market.
Thirdly, with the digital consumer
landscape becoming complex, businesses in the rail sector need to innovate and find new channels for communication. All of these challenges are also opportunities
which can be met with innovative services, using clever technology and enhancing these services with constant connectivity.
Meeting the challenge with digital solutions
Increased customer choice means increased pressure to retain passenger loyalty Passengers today have more choice. They know what they want, how much they want to pay and with access to price comparison sites and findings from annual national passenger surveys impacting on decision making, customers can research alternative providers at the touch of a button. This degree of choice is making it tough for rail operators to keep their customers returning.
The starting point for fostering loyalty is to truly understand your passengers. The rapid evolution of mobile technology may have transformed the passenger’s world, but technology has the power to do the same for rail operators. Smarter use of insight available through digital engagement can help rail operators understand more about their customers than ever before. Data and analytics tools can help provide a deeper insight into passengers’ behaviour and needs. For example, understanding why they are travelling and how often they make a specific journey, right through to understanding what they need to make their overall experience, from booking to arrival at their destination, as hassle-free and enjoyable as possible.
By using the insight, rail operators can find ways to differentiate from competitors, inform marketing plans and offer targeted promotions that benefit passengers.
Innovative technology that enhances journeys holds the key to customer satisfaction Rail operators need to keep pace with the rapid evolution of mobile technology. Customers want a more informed and integrated experience, where they can manage tickets and access relevant, real- time information – not only about their journey but also about their destination. Rail operators need to ensure they have reliable support in place to deliver. Employees are crucial to delivering the
best passenger experience and social media is becoming an integral tool in handling customer complaints. But social media must be integrated across organisations to be truly effective. Ensuring social media
July/August 2013 Page 75
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