Marketing helps us to understand the behaviour and the profitability of the customer base. In particular, analysing the market by age, frequency of use, group size and/or by time of day allows operators to get closer to their customers.
More importantly, however, by understanding our customers better, we are able to convert them into more profitable units. Why, for example, may customers complain about poor performance on a railway, even though service has improved? This is because passengers have a different perception of an operator’s performance, and customers’ assumptions will take time to adjust to the new reality of changed performance levels.
Just as importantly, how does reliability affect revenue? Using a combination of statistical techniques, market segmentation and an understanding of the development of customers’ perceptions, we are able to demonstrate how performance is a significant driver of profitability.
Outside the railway industry, we have also conducted analyses of the Travel and Tourism and also Financial Cards market for Euromonitor.