How a simple intervention can make the station and retail environment more appealing for rail customers (Guest blog by Worldline)
Station and Retail
Fundamentally, the station and retail environment must be appealing to rail’s customers – it must play a role in incentivising people to choose rail over other modes of transport. Worldline is working with rail and retail partners worldwide to improve the use of digital technology, data and payments. A simple intervention like offering a bespoke and tailored reward to travellers at departure or destination – a free coffee or breakfast – can improve the customer experience and make rail and other public transport modes more attractive to customer, while boosting the transport sector and its commercial assets.
The benefits of this type of intervention go beyond making rail more attractive - the well-publicised issues which have affected transport operators have also been felt by the 2,000 businesses operating in Network Rail’s commercial estate and the 93% of TfL’s 1,500 business tenant who are SME’s. Worldline is ideally placed to offer this intervention as they provide extensive payments, ticketing, data science and digital-first technologies to the rail, retail and hospitality sectors.
The Challenge
The pandemic has fundamentally changed working and commuting patterns – 700m fewer journeys were made between 2019 -20 to 2021-22 and he recovery in the post-pandemic journey numbers is showing signs of stalling.
This has been followed by staff shortages and funding challenges amongst transport and rail providers in the UK, both in the private and public sectors, which have been well publicised. The resulting impact on passenger perceptions can be seen in Avanti West Coast’s current service and customer satisfaction problems. Funding gaps have led to a devaluing of the passenger experience.
Such issues are not just affecting transport operators: there are almost 2,000 businesses operating in Network Rail’s commercial estate and 93% of TfL’s 1,500 business tenants are small and medium enterprises spread across tube stations and arches.
In 2024, Great British Railways will become the ‘guiding mind’ for the rail sector, with greater public oversight and responsibility for the sector’s health. It is imperative that we find solutions that incentivise travel by improving the passenger experience and ensuring the system is more profitable and productive.
Worldline’s unique position
In addition to longer-term reform of the sector, simply leveraging customer data, ticketing technologies and relationships with retailers can offer an immediate way to tackle this challenge.
In dialogue with SNCF, France’s railway company, Worldline is developing an offer that incentivises passengers to travel, which also benefits SME tenants. By leveraging digital technologies (both in ticketing and payments) it can intelligently offer discounts on a cup of coffee or breakfast as travellers disembark the train on their way to the office, or to start their tourism experience. Worldline can partner with the service provider and retailers to improve the passenger experience and incentivise travel.
Beyond this initial direct benefit, there are wider benefits to the rail service provider, retailer and taxpayer:
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The service provider can leverage its understanding of the customer to offer a more tailored experience, reward loyalty, partner with retailers and improve revenues.
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Evidence suggests that offers that bring customers through the door, like a free coffee, will often result in retailers making further sales on a sandwich or snack to go with it, boosting their revenues.
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With most stations under public ownership, and the model for GBR taking a ‘guiding mind’ role in the provision of rail services, a more prosperous link between rail and retail can ensure the entire system is less reliant on public subsidy.
Worldline is well placed to turn this idea into reality for the UK network because of its established relationships across the retail, hospitality and transport sectors. It works with 1m merchants worldwide and can offer seamless payments between transport and hospitality merchants.
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