importance of incentives in marketing and measuring tdm
DESCRIPTION
This presentation was given by NuRide CEO Rick Steele at the New York Metropolitan Transportation Commission meeting in New York on April 6, 2010.TRANSCRIPT
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Importance of Incentives in
Marketing and Measuring TDM
Rick Steele, CEO, NuRide, Inc.
NYMTC Meeting
New York, NY
Apr 6, 2010
http://nuride.com/contact
• Reward commuters
- carpool / vanpool
- public transit
- telecommute
- walk
- bike
• Ride matching
• 46,000 commuters
• 3.8 million trips
• 100 million VMT
NuRide is the nation’s largest commuter rewards program
3
$1.9 million in rewards provided by 296 sponsors
Commuter video – “car-polling”
5
1980 1990 2000 2010
46% decline
19.7%
10.7%
Technology has not increased ridesharing
6
The problem is motivation not mechanics
7
Gas prices provide motivation – but they are uncontrollable
Rewards provide ongoing motivation
58% joined because of rewards
48% previously drove to work alone
Rewards = motivation to change behavior
50% of members took a non-carpool trip in Dec 09
Rewarding all modes = bigger database = more matches
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Found one Thanks for match, bye!
Rewards! I’ll stick around
Rewards = loyalty = bigger database = more matches
Need match
75% reported a successful rideshare match
83% share rides “more” or “much more”
56% of active members have been active > 1 yr
Rewards = loyalty = bigger database = more matches
NuMail and email Poll & surveys
Rewards = loyalty = valuable feedback & communications
30% of new members in 2009
came from referrals and they were …
45% more active than non-referrals
Rewards = loyalty = referrals = more activity
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Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 $1.00
$2.00
$3.00
$4.00
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
30 yr low gas prices
record unemployment
Rewards = loyalty … even in bad times
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Jul-08 Oct-08 Jan-09 Apr-09 Jul-090
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000 NuRide trips up 59%
NuRide visits up 14%
Rewards = loyalty … even in bad times
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nuride.com
erideshare.com
rideproweb.com
rideshareonline.com
+ 14%
- 41%
- 42%
- 56%
Visits to competing web sites
were down at least 40%
Rewards = loyalty … even in bad times
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Recorded trip
From: Home
To: Work
Mode: Carpool
Vehicle: 2004 Honda Civic
Passengers: Bill & Tom
Company: IBM
Date: 12/15/10
Time: 8:05 am
Reward: 100 points!
Rewards = valuable measurement for regional reporting
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Employer
“races”
Rewards = valuable measurement to engage employers
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Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09
Trips
Houston Washington DC
Houston TX – good local rewards
Washington DC – poor local rewards
Reward must be ongoing, sustainable and local
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SUSTAINABLE
• Provided by sponsors
• Large/unlimited inventory
• Ongoing not one-time
Practical
Sel
f-co
nta
ined
10% off vacation
Tickets to event
$ off food
$50 gas cardUNSUSTAINABLE
• Must be purchased
• Limited quantities
• Unrealistic
expectations
• Attracts fraud
Sustainable rewards are sponsored – not purchased
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December 4, 2009
“The Atlanta downtown group is
also interested in adding scooters to
its cash-incentive program to promote
alternative commuting, Laurie says,
but doesn't have the budget to do so.”
Government funded rewards are not sustainable
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Periodic raffles and prizes do not constitute a rewards program
15% of active members
entered a raffle in ’09 whereas …
60% redeemed a reward
Sponsored rewards count as CMAQ local match – saving state $
$156,833 in sponsored rewards in
the New York Metro in ’09
$461,864 nationwide
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Technology has not increased ridesharing
Rewards increase ridesharing and promote TDM
So we learned that …
1. Provide motivation for more enrollments
2. Instill loyalty for bigger database with more matches
3. Instill loyalty for more referrals, enrollments and activity
4. Provide detailed, real-time measurement & communication
5. Rewards must be ongoing & sustainable, not periodic prizes
6. Sponsored rewards can save states money, not cost them