V Squared Strategies, LLC
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1 V Squared Strategies, LLC
2 The old formula for success simply doesn t apply anymore... Structural change in market parking demand is down Satisfying remaining consumers is more difficult Competition is more fierce One size fits all communication & marketing programs are no longer relevant
3 Your ultimate goal is to stimulate demand for on-airport parking - which, in turn, will lead to higher revenues Focus exclusively on a variety of on-airport parking lots The Context - Four Strategic Objectives 1. Retain Existing Customers 2. Up-Sell Existing Customers to higher priced lots 3. Attract Current Off-Airport Parkers from Competitors 4. Attract new parkers from those currently relying on other access modes Stimulate Demand - Tools at Your Disposal 1. Product & Service Enhancements 2. Incentives & Loyalty Rewards 3. Marketing & Communications Programs 4. Variable Pricing Models
4 1. Identify Product & Service Enhancements which are proposed to be implemented in various on airport parking lots 2. Leverage relationship with rewards programs to retain and reward existing customers and attract new ones 3. Establish a corporate discount and preferred parking program with Airline s top corporate clients and with large corporate travel agents in your market 4. Develop an on-airport parking,branding and marketing campaign that will dispel negative public perceptions, promote rewards and help individuals identify and psychologically connect with the lot that is right for them 5. Give consideration to alternative / unconventional usage of the real estate Family Friendly Lots, Valet, Reserved, Pet Boarding etc
5 On-airport parking transactions have been declining since 2007, and have currently leveled off at 9M paid cars annually Parking revenue has been declining since 2007 but has stabilized since 2009 following a rate increase In the 2 years following the rate increase in 2009 Passenger volume remains relatively flat with no significant growth expected in the next few years 59% of All Passengers at EWR are O&D Passengers Oct 2011 YTD total enplanements: 14.1 million Oct 2011 YTD O&D Enplanements: 8.31 million Oct 2011 YTD O&D Enplanements (Residents 52%): 4.33 million 42% of Residents travel to EWR by private car: 1.8 million many of which do not park.
6 There are 23 off-airport parking providers within 2.5 miles of the airport They offer approximately 9000 spaces at prices ranging from $8.00 and $23.00 per day excluding taxes. Travel times to/from airport range from 4 12 minutes Off-Airport Parking Operators are assessed and airport privilege fee effective March 1, 2012
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8 Four Strategic Objectives: 1. Retain Existing Customers 2. Up-Sell Existing Customers to higher priced lots P4 to P4 Valet P1/P3 to P4 and to P4 Valet P6 to P1/P3 3. Attract Current Off-Airport Parkers from Competitors 4. Attract new parkers from those currently relying on other access modes Car/Shuttle Service Taxi Friends and Relatives
9 Product & Service Enhancements Marketing & Communications Programs Incentives & Loyalty Rewards
10 Convenience Proximity to terminals AirTrain Connection Relatively Predictable Travel Times Accessible - Easy-in and Easy-out Adequate Supply Transparent Pricing Secure Valet and On-line Reservation Thanks Again Program / Loyalty Pay-on-Foot EZPass
11 Public Perception regarding high cost of on-airport parking Public Perception that lots are always full Value Added Services provided by off-airport competitors Online Reservations Coupons & discounts (prepaid discount) Terminal curbside pick-up/drop-off In-lot pick-up / drop-off at vehicle Valet Perceived sense of security On demand pick-up on arrival via phone or text Loyalty/reward programs Corporate discount programs
12 Strategy: Up-selling existing parkers to premium services Creative Execution
13 Strategy: Attracting parkers from the competitors Creative Execution
14 Search Engine Optimization Organic Search Optimization: Optimizing parking web pages for better results in web searches. Paid Search Optimization: Create a presence in search engine paid advertising for parking key words.
15 Recommendations: 1. Leverage our existing relationship with Thanks Again to retain and reward existing customers and attract new ones 2. Establish a corporate discount and preferred parking program with airline s top corporate clients and with large corporate travel agents 3. Purchase a mailing list of frequent and recent off-airport parkers and target them specifically through a direct mail and incentive program
16 Thanks Again is a Turnkey Passenger Loyalty and Engagement Solution for Airports (Park, Shop, Dine, Services) Airports Loyalty Offers Spend Data Engagement
17 1. Identify and Engage Your Most Valuable Customers Leverage a Turn-Key Loyalty Program Develop Consumer Insights, Unlock More Customer Value 2. Build Business Traveler Related Revenue $ Avg. Member Parking Ticket 3. Solidify Customer Retention / Increase Customer Loyalty Better Compete with All Airport Parking Providers 4. Acquire New Customers (Change Behavior) Use Loyalty Spend Data to Segment Customers, Target with Relevant Offers 5. Enhance Consumer Engagement Make the Parking Experience More Rewarding Engage/Partner with Regional Employers
18 Thanks Again Members Earn Miles/Points In Two Principal Ways: 1. Daily Rewards 1 Mile (2 Hotel Points) per $ Spent Can be Adjusted Higher or Lower Based On Business Needs and Seasonality 2.Bonus Rewards 5,000 Miles (10,000 Hotel Points) per Quarter Earned When Members Cumulatively Spend $1,000 or More Per Calendar Quarter Across ENTIRE Thanks Again Network ENTIRE = All Participating Airport and Off-Airport Merchants in Thanks Again Rewarding Merchant Network SM
19 Free, Fast, Secure One-Time Consumer Enrollment Enroll ANY American Express, MasterCard or Visa Card, Consumers Choose What Reward They Earn Consumers Automatically Earn Daily and/or Bonus Rewards with Qualified Transactions at over 170 U.S. Airports and 20,000 Local Merchants Members Earn Double Miles/Points with Travel/Rewards Affinity Cards Simple Merchant Enrollment Process NO New Equipment/Software to Install NO Change in Customer Purchase Process Thanks Again Manages Customer Service and Merchant Care Functions and toll-free phone number
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21 Customer satisfaction is worthless. Customer loyalty is priceless - Jeffrey Gitomer Without Data Analytics, Companies Are Blind and Deaf, Wandering Around Like A Dear On The Freeway Geoffrey Moore, Author of Crossing the Chasm & Inside the Tornado
22 Loyalty Management Platform Enables Upgraded and Automated Program Reporting Loyalty Data Analytics Reports include Top Spenders, Most Frequent, Attrition, and Spending By Zip/Market Demographic Reports include Household Income, Gender, Members in Household and Home Ownership Real-Time: Select the Current Month or Specific Date Ranges Flexible: Assess Spending Program-Wide or by Individual Merchant Detailed: View Individual Passenger Spending (Anonymous) Engagement: Quickly Identify and Engage Aggregated Groups of Passengers With TIMELY and RELEVANT Offers
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24 If You Knew Your Best Parkers What Would You Say To Them? Thank You Upgrade To A Premium Lot / Reserved Parking Target Low and Mid Spenders As Well Participant ID Amount Spent # of Transactions Average Spend City State/Prov. Last Transaction Quintile $4, $ Springfield $4, $ Bernardsville $3, $ bedminster $3, $ Monmouth Junction $3, $ Old Bridge $3, $ red bank $2, $ Middletow n $2, $ Walden $2, $85.31 Atlantic Highlands
25 Premium Services: Valet Parking Ancillary Services (Car Wash, Dry Cleaning) Lot Upgrade Monthly Services Customer Appreciation: Thanks You Services Offer (Free Car Wash)
26 Identify People Who Shopped In The Terminal But Did Not Park Segment People Who Spend Regularly In Terminal Send Offers For Parking Directly To These Individuals Track The Results Over A Period Of Time Last Name City Average Transaction Days Since Avg Days Between Shop/Dine Park Transaction Amt Count Last Transaction Transaction Transactions Transactions Beidelman Bethlehem Wiseman Hopatcong Ryckman Furlong Halbout Larchmont Matos Madison Dudzic Tarrytown Bailey West Palm Beach bang White plains Hillebrecht Flemington
27 Acquisition Promotions To Known Airport Users: Double Miles Discounted Parking Convenience Based Promotions Monthly Services
28 Identify People Who Shopped In The Terminal But Did Not Park Segment People Who Spend Regularly In Terminal Send Offers For Parking Directly To These Individuals Track The Results Over A Period Of Time Members That Spent in November 01, January 08, 2014 But Did NOT Spend in April 01, September 05, 2014 Member ID Amount Spent # of Transactions Average Spend City State/Prov. Last Transaction $1, $47.73 Atlanta GA 1/4/ $1, $ Roswell GA 12/10/ $1, $ Grayson GA 1/7/ $1, $ Atlanta GA 11/18/ $ $ Atlanta GA 1/5/ $ $44.04 Acworth GA 12/20/ $ $59.32 Atlanta GA 12/4/ $ $74.02 Smyrna GA 12/20/2013
29 Retention Promotions To Parkers We May Have Lost: Significant Rewards on Next Parking Event Discounted Parking Convenience Based Promotions (Free Valet) Monthly Services
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