Promoting open payment to attract new riders to Bay Area transit
MTC and transit agencies have opportunities to increase transit ridership by promoting the upcoming capability to pay by credit/debit cards and Apple/Google wallets for tourists and for people taking trips to sports and entertainment who aren’t frequent transit users. For tourists and people making entertainment trips, the ability to use the credit/debit card or mobile wallets that people already have, makes trips much more convenient without the need to fumble with cash or buy a special payment card.
However, the current launch plan for the next-generation Clipper system doesn’t start actively marketing to new customers until after completing a several-month rollout to existing customers. This sequential approach delays opportunities to grow revenue and improve public perception of transit, at a time when new revenue and positive public image are critically important.
MTC’s sequential rollout plan - current customers first
At the February meeting of the Clipper Executive Board, MTC staff reviewed their plans to roll out the next-generation Clipper system. The launch plan wisely includes a methodical approach to roll out the new features to current transit users, starting with customers who receive discounts, who use transit most frequently and who transfer most frequently.
Rolling out methodically to current customers is good and important, because the system has the capacity to convert about 150,000 people per day/week. There are a few million cards in customers’ hands, but a much smaller number of frequently used cards. The planned rollout approach to existing customers will enable MTC to handle the customer change with good attention to reduce confusion and improve satisfaction.
If a transit rider finds out about the launch and the card hasn’t yet been converted, they can initiate the change by logging into the Clipper website, mobile app, or by calling the service center. The new system works a little differently than the current system, with benefits including free/reduced price transfers, near-immediate loading of cash, and drawbacks including not seeing one’s balance on the card reader.
The increased convenience and affordability of free/reduced price transfers poses a good opportunity to market to lapsed riders. Many transit riders fell away during the pandemic, and Clipper 2 launch is a great opportunity to lure people back to try transit with a more seamless rider experience.
The channel for communication to current frequent customers as well as lapsed customers will be handled through the transit agencies who have the most frequent contact with transit users.
No need to wait for rollout to new riders
The launch to new customers using transit for tourism and entertainment will be - or should be - very different from the rollout to existing customers. The new feature to pay with credit/debit cards and mobile wallets will work on the very first day of launch. So there’s technically no need to wait to market the heck out of it.
Unlike current customers, who learn about the system mostly from the agencies they use, the new customers are likely to learn about the transit travel option from their travel experience or destination. The airports should have big billboards promoting the ability for travellers to easily take transit to get where they’re going. And venues - sports, music, museums, parks - and restaurants, movie theaters, and other more local venues - should have ubiquitous website and onsite content and decals promoting the ability to get there conveniently and affordably by transit, without parking hassles. The distribution channels for these customers is the venue, not the transit agency.
Reasons to jump on the opportunity and not wait
Open Payment with Clipper 2 opens an opportunity to cultivate a growing market. Following the pandemic, recreation and entertainment have recovered more quickly than commute travel. At some Bay Area agencies, weekend trips are now higher than pre-pandemic levels. At a time when agencies face fiscal cliffs, promoting this attractive new feature poses an immediate opportunity for new revenue.
This is also an important political opportunity to beef up support among nearly two thirds of the population who use transit infrequently. The Bay Area is currently laying the groundwork for transportation funding measures that will be essential to raising revenue to continue service and prevent cuts. Polling shows that voter support increases the more they use transit. So enticing customers who use transit rarely to become more frequent users is a powerful opportunity to increase voter support.
Working with partners for promotion
The MTC slide mentioned working with organizations including Bay Area Council, whose business network includes the major tourism and travel destinations, with the travel and hospitality organizations, and Seamless Bay Area, with a broad network of cities, local organizations and transit supporters to help with the rollout. We’re looking forward to creating ideas to start promoting transit to new users as soon as the open payment feature is available, the better to bring in more riders. If you have creative ideas to promote transit for entertainment and recreation with the ease of use of open payment, please share to info@seamlessbayarea.org.