Data-driven

customer

engagement

transforms public

services

Pierre Bourbonniere

Director of Marketing

Video: Introducing STM Merci

STM OVERVIEW

228 bus lines, including 30 night bus lines

68 metro stations

1,4 M daily trips

65% share of downtown trips during peak

1.3B$ in revenue (50-50% fare vs subsidies)

2.5 M active Opus smart cards – 85% of validations

Monthly pass penetration ratio 80-20%

RIDERSHIP IS BACK !!!

RECORD RESULTS

2020 STM BUSINESS PLAN

STM

Attain 540 million trips a year by 2020

Transgesco

Double the non-fare revenues to $40 Million

Growth of net commercial revenues 2010-2020

BRAND VALUE

+

RELATIONSHIP VALUE

BRAND VALUE IS THE BASE FOR RELATIONSHIP VALUE. TO BUILD THE

RELATIONSHIP, WE NEED TO BE CREDIBLE, TRUSTED AND APPRECIATED.

STM CUSTOMER RELATIONSHIP

STRATEGY

Public transit by conviction!

Public transit for convenience and no stress

BMW - Bus, Métro, Walk.. Hates cars!

I have no choice but to use public transit

Public transit, since it is more affordable…

I prefer my car….but occasionally, at festivals or hockey….

Occasional The constraint In transit

Active urban

The practical The urban Montrealer

MARKETING OBJECTIVE:

Retention…retention…retention

Build 1-1 relationship

Improve the customer experience

Reward / recognize / retain

Increase public transit usage

frequency…Off peak

Migration towards monthly, yearly pass

programs

INNOVATE

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THE BIG IDEA !

Launch a reward & recognition program that allows

our customers to receive personalized and exclusive

information, offers and promotions, geolocalized and

in real time based on their profile, usage habits and

location through a mobile application.

RIGHT PRODUCT- RIGHT PERSON - RIGHT PLACE - RIGHT TIME

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REGISTRATION OF THE OPUS CARD

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PROFILE AND PREFERENCES

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PERSONALIZED CONTENT

OPUS Information

Nominal info

Transactional

Profile

Men / women

Age group

Status, children

Favourite bus lines and metro stations

Transportation and transit usage

Location (RTA)

Preferences

Home

Music

Family

Fashion

Culture

Events

Food, groceries

Electronics

Restaurants

Outdoors & Sports

Environment

Health

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STM INFO: PERSONALIZED INFORMATION

AND ADVICE

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GEOLOCALIZED OFFERS

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OFFER EXAMPLES

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ALERTS: PROXIMITY OFFERS

BENEFIF FOR THE ENVIRONEMENT

One round-trip is the ecological benefit equivalent of one tree during a year.

My ecological contribution based on my public transit trips is presented in the number or saved trees by me and my community.

Uniqueness

Loyalty model

Combined aspects of geolocalization, real time, personalization, genius and Opus card data

Legal and privacy aspect

Gamification component in line with our brand positionning

Leveraging customer mobility and engagement to generate velocity

Large number and relevance of partners

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PARTNERS BENEFITS

Brand recognition

Positive association with the STM

« Green » positioning

Innovative product

Media value

Visibility

Personalized communications to our shared customers

Communication plan to support the app

Data

Access to 2 million Opus smart card owners

Géolocalization

Segmentation

Technology

World class partner (SAP)

Precise tracking and metrics

Opportunity to test the technology

Enthusiastic feedback from the

media Broad coverage from the press, regional & national radio and TV networks

Consumer Adoption 48 hours after the SOFT Launch…

STM Merci: #1 on the AppStore in Canada under lifestyle category ahead of

eBay, Groupon or Amazon

STM Merci in 115 tweets, linked to

99,865 impressions

6,203 unique sessions

328K promotions sent in first 48 hours

Offer acceptance peaked at 47%

Strong start…

Partner demand | Over 340 merchants, 542 stores and 1,000 events

STM partner locations

Size | Leading brands to mom & pops

Industry | Grocery stores to sports venues

Location | City center to suburbs

Consumer Adoption & Usage What we see 6 month after launch of targeted market

pilot

• Rapid consumer adoption based on word-of-mouth only

Over 20 000 downloads of the iPhone application in the first 2 months

• Repeat usage with more than 300,000 sessions

• Willingness to participate and share personal information with STM

More than 50% of consumers willing/eager to share personal profile

Mobile applications can stick

Relevance & Trust drive willingness

to share personal information

Consumers are eager to participate

Business Impact What we see 16 weeks after launch of targeted

market pilot

• Large volumes making this marketing channel relevant to merchants

Over 3,700,000 offers sent by batches of 10

• Substantial impact on consumer behavior with some KPI’s clearly in double-digit territory

Top 10 offers enjoyed average click through rate of 67%, and validation rate of 64%

A third of the offers had a click-through rate above 10%

• Variability in validation rates reflect early days of personalized mobile marketing

Top 25% of offers enjoyed an average validation rate of 44%

18 offers enjoyed a perfect score of 100% validation rate

However, bottom 10% missed the mark with 0% validation rates

Clear validation of the potential of Precision Marketing

Working with early adopters to write the manual for context- aware

consumer interactions

Moving into double-digit territory

Results and benefits $$$$$

24% of Merci members have increased their usage of public transit during the pilot

57% have discovered new destinations by public transit in Montréal

43% are using PT for new reasons than work and school

47% have taken a friend along due to offers from STM Merci

It is estimated that customer revenue due to change in purchasing behaviour and increased usage would reach 10M$ over 3 years

It is estimated that non-fare revenues from placement and media would reach 6M$ over 3 years

Next steps

Make the program available to our 2,5M

Opus Card holders

Invite more partners in the region to

participate

Create a citizen card with the Opus card and

expand the MERCI program to the whole

Montreal community

Congratulations on winning

the SuperNova award for

‘Next Generation Customer

Experience’

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