Business Opportunity
While many thought that the 2008 economic downturn would have minimal impact to public transit, that certainly was not the case. In fact, a large portion of ridership consisted of commuters that rode transit as a discretionary choice, using it as a convenient means to work and to various social activities.
As people reduced non-essential spending, these discretionary travel choices significantly declined. A key driver being an increase to unemployment, which adversely impacted the volume of ‘work commuter’ traffic; leaving a value gap in terms of why this segment should continue to consider using transit.
With this being the situation, Nathan led the process to gain advocacy and develop a first-in-class customer loyalty strategy for Edmonton Transit.
The work first started by evaluating the feasibility of an in-house managed loyalty program. However, it was quickly appreciated that leveraging an existing third-party provider (with notable market penetration and expertise) would offer the most value.
After assessing loyalty partner opportunities at the national level, developing an extensive business case and receiving senior leadership approval, Mr. Walters successfully negotiated a strategic collaboration with LoyaltyOne (AIR MILES®); the most recognized loyalty currency in Canada. This partnership made the City of Edmonton the first government entity in the country to offer AIR MILES® reward miles.
Actions + Outcomes
In 2012, the AIR MILES® reward miles currency enabled the ETS Marketing Group to run several joint campaigns with Safeway, increasing monthly pass sales from the retail partner by over $600,000.
The ETS Marketing Group executed several e-commerce-driven campaigns that leveraged AIR MILES® reward miles, including an early 2013 campaign that realized an additional $75,000 in revenue.
At its peak, approximately 80 percent of online customers that purchased an adult monthly pass opt-in to collect AIR MILES® reward miles; indicating the strength of the transit loyalty program.
Nathan received the Canadian Urban Transit Association national award for Corporate Innovation.
