2019 Amtrak Marketing Update - Chris Smith Director of Policy, Communications, and Legislative - Hampton Roads Transportation ...
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Chris Smith
Director of Policy,
2019 Amtrak Marketing Update Communications,
and Legislative
Affairs
Hampton Roads Transportation Planning Organization
March 20, 2019
Funding
$1.7M Annual Budget
DRPT direct spend budget
Amtrak national marketing budget
Marketing Partnership
Program & Amtrak and DRPT Marketing teams
Initiatives Consultant Support: Siddall Communications
Strategy
Data trend analysis informs media buys
Monitor and redevelop strategies to grow ridership
3/20/2019 2
Who rides the train?
Gender Age
Marketing 55+
Data
Male 35-54
Female
39.5%
60.5%
18-34
0% 20% 40% 60%
3/20/2019 3
Why are they riding the train?
Marketing Business
Data 31%
Leisure
69%
3/20/2019 4
Where are they going?
1. Richmond Staples Mill Washington
2. Charlottesville Washington
Marketing Data 3. NYC Richmond Staples Mill
Top 5 City Pairs 4. Newport News Washington
5. Charlottesville NYC
3/20/2019 5
90000
80000
70000
Virginia 60000
Sponsored 50000
FY2019 YTD
Route 40000
3Y Average
30000
Ridership 20000
10000
0
6
2018 YTD Monthly Ridership Totals vs. 3-Year Average
Newport News
16000
14000
Virginia 12000
10000
Sponsored
8000
Route 6000
FY2019 YTD
3Y Average
Ridership 4000
2000
0
7
2018 YTD Monthly Ridership Totals vs. 3-Year Average
Norfolk
16000
14000
Virginia 12000
10000
Sponsored 8000
Route 6000
FY2019 YTD
3Y Average
Ridership 4000
2000
0
8
100%
90%
80%
70%
60%
On-Time 50%
Performance
40%
30%
(OTP) 20%
10%
0%
On-Time Performance Amtrak OTP Goal
• OTP is affected by many factors: capacity, equipment, operations, and weather.
• OTP can have predictable cycles:
- Construction season
3/20/2019 - Heat restrictions in Summer, snow in winter 9
Each State Sponsored Route is Unique
Hampton Roads is a 2-station market.
Amtrak Thruway Bus connects Newport News and
Norfolk
Virginia Newport News offers two daily round trips
Newport News offers midday service
Sponsored Hampton Roads riders “open-jaw” between both
Route stations
Ridership Richmond Route has the most options with
Hampton Roads, Long Distance, and the Carolinian.
Richmond has the busiest Amtrak station in the
Southeast
Ridership in Richmond is down more than other Routes
3/20/2019 10Goal: Increase Ridership
• Understand current train travel perceptions
• Understand current ridership barriers and develop
Statewide strategies to overcome them
Market
Research • Identify key consumer insights to leverage for
creative messaging
• Forecast the impact of these efforts through on-
going measurement and assessment
3/20/2019 11Virginia Customer Satisfaction Index
FY18
Reliability/OTP – How satisfied are you with the reliabilityYTD
and on-time performance of the train?
Value/Price – How satisfied are you with the value of Amtrak service received for the price paid for the trip?
Route Factor Very YTD Very YTD
Satisfied Trend Dissatisfied Trend
Lynchburg/Roanoke Reliability/OTP 75% -8% 8% +3%
Value/Price 79% -4% 4% +2%
Richmond Reliability/OTP 75% -2% 9% +2%
Value/Price 75% -3% 4% +1%
Norfolk Reliability/OTP 80% +3% 6% -2%
Value/Price 80% -2% 4% +2%
Newport News Reliability/OTP 61% -6% 19% +9%
Value/Price 71% -6% 7% +4%
Amtrak National Reliability/OTP 74% -2% 10% +1%
Value/Price 70% -3% 6% +2%
3/20/2019 12Project QUALITATIVE
RESEARCH
ECONOMIC
FORECASTING
QUANTITATIVE
RESEARCH
Overview (focus groups) (model) (survey)
Develop a modeling tool to Use findings from
Uncover the practical and better assess and predict qualitative phase to inform
emotional drivers Virginia the potential effects of new a large-scale, quantitative
consumers associate with pricing strategies on benchmark survey among
train travel and Amtrak ridership Virginia travelers
3/20/2019 13• 67% of respondents would take the train
• Four in five respondents are satisfied with their train travel
experience.
Current • Satisfaction with train travel is significantly higher than
Rider satisfaction with Amtrak
Perceptions • Avoiding traffic are reported as the greatest benefits to
traveling by train in Virginia.
• Destinations and stations are reported as the greatest barriers
to traveling by train in Virginia.
14Decision
Destination Options
Tree of
Travel Y/N Train Schedules
Needs Y/N Ticket Price
Y/N “First / Last-Mile” Hassle
Y/N
3/20/2019 15Getting to the station and parking
“Flying back to Norfolk late at night “Hampton Roads sorely “I love that there is a
and going to long term parking is one lacks public transportation station in Roanoke, but
thing. Arriving back in Newport News which would help making the parking is a big
late at night and who knows where you getting to train station issue.”
parked your car is another..” easier.” — Student
— Leisure 55+ — Leisure 55+
Station Pain
Points
Departure times and destination options
“More train options from “Adding a regular or hourly train “For all the other investments
C-ville going westward in schedule would probably increase. the state could make, those
state, helping to minimize It would be considered a more focused on making sure that
travel on the interstate reliable form of transportation such the trains can meet the
which is seriously as a bus service that usually runs existing timetables (seem to be
overcrowded.” this way.” among the most vital.”
— Leisure -55 — Business — Business
3/20/2019 16Proximity to Known and Trusted
Public Transportation
“Location would come in to play too, how
“First Mile / “The train station destination is a
consideration, dropping off at
Union Station is ok as I can usually
far would the train station be from my
destination as with driving I can usually
Last Mile” Pain get to anyplace I need to get to.”
— Leisure 55+
just drive right up to my destination.”
— Leisure -55
Points
and Partner with ground transit and
Solutions ride sharing providers
“Pair with Lyft/Uber/Taxi to offer some sort of "door to door” “This for me could very well
ticket whereby you'd have a voucher for the estimated cost of a change my mind about driving
ride to your hotel/home. The ridesharing company would all together. Especially if I can
automatically alert drivers and summon them as the train gets go "Door to Door". For a little
there. I'd even settle for being able to book a taxi to pick me up at more money this would be
some stations through some sort of centralized process.” worth it for me.”
— Business — Business
3/20/2019 17What are they willing to pay?
Discount Terms YTD Ridership Impact on %
Share
None Full-Fare 359,729 57.5%
14-Day Advance 25% 132,168 21.1%
AAA 10% 10,823 1.7%
Marketing Children 50% - 1 child: 1 adult 15,006 2.4%
Data Disabled 10% 11,999 1.9%
FY2018 YTD Military 10% 10,196 1.6%
NARP 10% 1,576 0.3%
Senior 10% - 65+ 49,062 7.8%
Veterans Advantage 15% 22,482 3.6%
Students 10% 8,584 1.5%
VRE Step-Up 15 – 20% 43,762 9.2%
Flash Sales Terms Vary
3/20/2019 18Existing Promotions
• Flash Sale Discount: 30 percent off flash sale (customers either
purchase quickly or lose). Assumed 25 percent of ridership would take advantage of
this discount.
• Advance Purchase Discount: 25 percent off ticket price
Fare discount (with a 14 days advance purchase). Assumed 25 percent of all ridership
would take advantage of this discount.
Scenarios Potential Promotions
and • Intra-Virginia Discount: Permanently discounted tickets as a result
of Intra-Virginia travel (including Washington D.C.). This discount is applied to all riders.
Assumptions • Student Discount: Pre-paid student ticket pack (e.g. six-pack of tickets
at one upfront price). Assumed 20 percent of student ridership would take advantage of
this discount.
Past Promotions
• Demographic Discount: Permanently discounted tickets based on
demographics (e.g. student, senior, military). 10 percent off ticket price. Assumed 10
percent of all riders would take advantage of this discount.
3/20/2019 19Estimated Increase in Annual Ridership
Flash sale 2.8% (+23,800)
Results
of Advance purchase 2.3% (+19,700)
Fare Intra-VA discount 6.1% (+51,100)
Discount
Scenarios Student multi-pack 0.9% (+7,500)
Demographic discount 0.3% (+2,800)
0 1 2 3 4 5 6 7
Percent change
FY2016 and FY2017
Amtrak VA-Sponsored Trains served 844,434 riders in FY 2018
3/20/2019 20Estimated Change
Revenue in Annual
percent changeRevenue
Amtrak 0.6% (-$321K) Flash sale
Ridership in -0.4% (-226K) Advance purchase
Virginia -1.3% (-$683K) Intra-VA discount
Model
Summary -0.2% (-$102K) Student multi-pack
-0.1
Demographic discount
% (-$32K)
-14 -12 -10 -8 -6 -4 -2 0
Percent change
Total Virginia Revenue FY18 $46.5 million
3/20/2019 21Messaging around destinations and prices
Option A Option B
Growing
Awareness of
Current Focus groups reviewed and marked up two Amtrak Virginia Flash Sale ads.
Discounts Overall, Option B was the preferred choice.
The scenic visual and text with the sale’s exact
A
end date were the main points of preference.
B “I think of the scenery and the train riding through
places in all of my visions! [Option B] is more attractive
to the consumer, plus it has the sale details advertised!”
3/20/2019 — Leisure 55+ 22Earned
Media
3/20/2019 23Paid
Media
3/20/2019 24In-Kind 3/20/2019 25
Social
Media
3/20/2019 26Students keen to see more
representation in advertising
Apply
“I would like to see more
Key advertisements that are geared
towards Millennials. I think that train
Virginia travel can become a cool and trendy
thing if marketed to the right group.
Millennials are traveling more than
Insights ever so that is the audience that
needs to be catered to.”
— Student
3/20/2019 27Communicating the
stress-free benefit of
reduced traffic.
Apply
Words such as calm,
Key friendly, soothing, enjoy,
Virginia and peaceful were favorite
descriptors among
Insights respondents.
3/20/2019 28Short Term (1-5 Years)
• Develop strategies with Amtrak and Host RR to address
frequent issues affecting On-Time Performance
• Monitor Amtrak’s implementation of customer improvement
Improve Service plan and impact on customer service survey data
& • Develop Marketing Strategies based on survey results
• Improve Wi-Fi performance on Amtrak trains
Grow Ridership
Medium Term (5-10 Years)
• Take an active role on multi-state committee to advise Amtrak
on re-fleeting of locomotives and train equipment
Long Term (10+)
• Advance project to add capacity
3/20/2019 29HIGH IMPORTANCE
• Is clean
• Is the best value for my • Is timely and reliable
money • Is comfortable
• Has good customer service
• Has door-to-door • Offers desirable destination options
• Has easy pre-boarding and boarding
convenience (i.e. you experience
HIGH PERFORMANCE
LOW PERFORMANCE
can get to your final • Offers flexibility (ability to make changes
and/or book with short notice)
destination easily) • Has hassle-free security
• Has Wi-Fi and streaming services
Opportunity
• Is quiet • Is family-friendly
Mapping
• Offers quality food options • Provides appealing scenery
• Offers a variety of food • Is good for professionals
options
• Offers adult beverage
options
• Is pet-friendly
LOW IMPORTANCE
Average performance of attributes ⁒ Average importance of attributes
3/20/2019 30Satisfaction Interest in Amtrak
with Amtrak for next out-of-town trip
93% 91%
76%
58% 56% 59%
75%
Knowledge
21%
32%
25%
40% 68%
Score
37% 44% 37% 35%
34%
23%
Low Medium High Low Medium High
Knowledge Knowledge Knowledge Knowledge Knowledge Knowledge
High Knowledge Score n = 97
Med Knowledge Score n = 564
Low Knowledge Score n = 364
3/20/2019 31INTEREST IN TAKING AMTRAK
79%
Impact 65%
of 31%
47%
Advertising 5 - Very
interested
34% 4
32%
NOT Aware of Advertisements Aware of Advertisements
3/20/2019
Aware of Ads n = 266
Not aware of ads n = 518
32Implications and Recommendations
FINDING IMPLICATION & RECOMMENDATIONS NEXT STEPS
Amtrak is winning on sentiment, but losing on service.
Messaging should be focused on rational aspects of travel where
Fundamental practical issues such as reliability, Service Improvement
perception gaps exist (i.e. timeliness, reliability, value, and door-to-door
schedules, and routes get in the way of truly loving Plan
convenience) and DRPT’s service improvement plan.
Amtrak.
Increase
DRPT mission awareness increases consideration of For families in particular, let more customers know about DRPT’s mission Commonwealth
Amtrak in the Commonwealth. and how it relates to Amtrak travel. Visibility
The more someone knows about Amtrak in the
Implementation and
Commonwealth, the higher their satisfaction ratings Reach out to people with the Service Improvement Plan. Emphasize
Promotion of Virginia
and interest in traveling with Amtrak. Knowledge DRPT’s service improvement plan specifics in communications with
Specific Discounts and
about DRPT’s service plan especially lifts these prospective and current riders.
Options
ratings.
3/20/2019 33Implications and Recommendations
FINDING IMPLICATION & RECOMMENDATIONS NEXT STEPS
Continuously Review
Increased media spend, especially for messages about service
Advertising recall for Amtrak is low, but has a and Improve
improvements, could go a long way toward increasing satisfaction ratings
significant impact. Marketing Strategies
and interest in taking Amtrak in the future.
There is no one solution for overall station improvement. Each station has
Amtrak stations are often mentioned as a barrier to Statewide Station
individual issues to be addressed. Quantico Station may need special
train travel, and specifics need to be addressed. Assessment
attention to improve military perceptions of Amtrak.
Less than expected satisfaction and NPS scores from Millennials warrant a
With lower ratings for trains and Amtrak all around, All of the Above
closer look from Amtrak, and a communications focus on riders ages 35 and
Millennials need a closer eye.
under.
3/20/2019 34You can also read
