engaging state corridor customers through amtrak’s digital...

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Engaging State Corridor Customers Through Amtrak’s Digital Channels

SCORT/Amtrak MeetingRob Friedman – Vice President Brand Management and Marketing

February 17, 2016


Agenda

• To drive additional revenue on our State Corridor services, we are leveraging some key strengths to engage our customers through digital channels

• Our strengths include:

– Engaged and satisfied customers, as shown by our High Customer Satisfaction Scores

– Tech-savvy customers, as shown by the High Digital Channel Usage to Book Amtrak Trips

– Increasing customer loyalty to Amtrak, as shown by Growth of the Amtrak Guest Rewards Program

• Our engagement channels include highly relevant, personalized messages and offers delivered through:

– Amtrak.com

– Email Marketing

– Digital Advertising


Leveraging Our Strengths


Overall State Corridor eCSI for 1Q16 was 84%, up 3 points vs. the same period last year. OTP eCSI results improved significantly, up 6 points vs. last year, while Value, Friendliness, Information and Food Service scores also grew 3 points

Percent Very Satisfied(80, 90, 100 on 0-100 Scale)

FY15 FY16 Diff.

Q1 Q2 Q3 Q4 YE Q1Q1 FY16 vs.

Q1 FY15Overall State Corridor eCSI 81% 82% 81% 82% 81% 84% 3On-time performance 72% 76% 74% 74% 74% 78% 6Clarity of announcements on the train 70% 73% 71% 72% 71% 74% 4Value of Amtrak service for price paid 75% 77% 76% 78% 76% 78% 3Friendliness/helpfulness of conductors 86% 87% 88% 88% 87% 89% 3Information given on problems/delays 73% 76% 73% 74% 74% 76% 3Quality/freshness of food in café/lounge 65% 67% 68% 67% 67% 68% 3Overall experience in café/lounge car 69% 72% 72% 71% 71% 72% 3Information received about the train trip prior to boarding the train 86% 86% 86% 86% 86% 88% 2

Comfort of seat 82% 82% 83% 83% 82% 84% 2Information given on services/safety 70% 72% 70% 71% 71% 72% 2Info. given on connecting transportation services at destination station 70% 72% 70% 72% 71% 72% 2

Smooth/comfortable ride 86% 86% 85% 87% 86% 87% 1Personal security on the train 87% 88% 88% 88% 88% 88% 1

Source: Amtrak eCSI Survey

High Customer Satisfaction Scores


High Customer Satisfaction Scores

Relevance Value Familiarity Continuous Improvement

Scope ofService

Fares/Benefits

LoyaltyProgram Partners Tech

ToolsStation/Onboard

Experience

• Overall 1Q16 eCSI scores for individual routes ranged from 72-92%

• 20 of 29 routes improved vs. FY15, with increases of up to 16 points

• Routes >85% include:– Downeaster– Keystone– Hiawatha– Chicago – Quincy– Heartland Flyer– Capitol Corridor– Blue Water– Washington – Lynchburg– Washington – Norfolk– Washington - Richmond– Kansas City – St. Louis– Pennsylvanian– Pere Marquette– Piedmont

FY16 Q1 eCSI SummaryFiscal Year-to-Date

Overall eCSI Scores (% Very Satisfied) FY16 vsFY16 FY15 FY16 Goal FY15 Goal

Amtrak System-wide 80 77 78 +3 +2

3 - Ethan Allen 81 82 80 -1 +14 - Vermonter 79 78 80 +1 -17 - Albany-Niagara Falls-Toronto 81 71 71 +10 +109 - Downeaster 92 76 89 +16 +312 - New Haven-Springfield 78 78 78 0 014 - Keystone 87 85 86 +2 +115 - Empire (NYP-ALB) 82 81 79 +1 +320 - Chicago-St. Louis (Lincoln Service) 77 80 77 -3 021 - Hiawatha 90 86 86 +4 +422 - Wolverine 81 65 70 +16 +1123 - Chicago-Carbondale (Illini/Saluki) 78 65 74 +13 +424 - Chicago-Quincy (IL Zephyr/Carl Sandburg) 91 86 89 +5 +229 - Heartland Flyer 92 88 89 +4 +335 - Pacific Surfliner 81 83 85 -2 -436 - Cascades 84 80 84 +4 037 - Capitol Corridor 88 86 88 +2 039 - San Joaquin 84 83 85 +1 -140 - Adirondack 72 77 69 -5 +341 - Blue Water 87 74 78 +13 +946 - Washington-Lynchburg 86 84 85 +2 +147 - Washington-Newport News 74 75 77 -1 -350 - Washington-Norfolk 85 85 86 0 -151 - Washington-Richmond 85 82 83 +3 +254 - Hoosier State 82 71 75 +11 +756 - Kansas City-St. Louis (MO River Runner) 90 85 88 +5 +257 - Pennsylvanian 85 81 86 +4 -165 - Pere Marquette 88 81 82 +7 +666 - Carolinian 73 78 77 -5 -467 - Piedmont 88 92 91 -4 -3

State Corridors 84 81 83 +3 +1


High Amtrak.com/Mobile App Penetration Rates


Scope ofService

Fares/Benefits



Experience

• During FY16 1Q, 73% of State Corridor revenue and 70% of riders were booked via Amtrak.com or the Amtrak mobile app

• Routes >80% (Revenue)– Ethan Allen– Vermonter– Chicago – St. Louis– Wolverine– Illini– Illinois Zephyr– Cascades– Adirondack– Blue Water– Washington – Lynchburg– Pere Marquette

Route Rev Riders Rev Riders Rev Riders3 ETHAN ALLEN 70% 68% 11% 11% 81% 80%4 VERMONTER 77% 76% 7% 7% 84% 83%7 ALBANY-NIAGARA FALLS 68% 67% 8% 8% 76% 75%9 DOWNEASTER 60% 61% 15% 12% 75% 73%

12 NEW HAVEN-SPRINGFIELD 64% 59% 10% 11% 73% 70%14 KEYSTONE 57% 53% 18% 19% 76% 71%15 EMPIRE 64% 66% 14% 13% 78% 80%20 CHICAGO-ST LOUIS 68% 66% 13% 13% 80% 79%21 HIAWATHAS 43% 45% 18% 15% 61% 61%22 WOLVERINE 71% 69% 10% 10% 81% 80%23 ILLINI 67% 65% 13% 13% 80% 79%24 ILLINOIS ZEPHYR 65% 66% 14% 14% 80% 79%29 HEARTLAND FLYER 61% 60% 10% 10% 71% 70%35 PACIFIC SURFLINER 52% 47% 14% 14% 65% 61%36 CASCADES 75% 74% 7% 7% 82% 81%37 CAPITOL CORRIDOR 41% 42% 18% 15% 59% 58%39 SAN JOAQUIN 44% 40% 13% 12% 56% 52%40 ADIRONDACK 75% 74% 6% 6% 81% 80%41 BLUE WATER 71% 69% 10% 10% 81% 79%46 WASHINGTON-LYNCHBURG 75% 75% 7% 7% 82% 82%47 WASHINGTON-NEWPORT NEWS 69% 69% 8% 8% 77% 77%54 HOOSIER STATE 62% 63% 11% 10% 73% 73%56 KANSAS CITY-ST LOUIS 67% 66% 10% 9% 76% 75%57 PENNSYLVANIAN 64% 59% 9% 10% 73% 69%65 PERE MARQUETTE 71% 71% 10% 10% 81% 81%66 CAROLINIAN 61% 60% 7% 8% 69% 68%67 PIEDMONT 58% 55% 13% 12% 70% 67%

Subtotal 61% 57% 12% 12% 73% 70%

Amtrak.com Mobile App TotalPercentage of Revenue and Ridership booked via digital channel


Growing Amtrak Guest Rewards Memberships


Scope ofService

Fares/Benefits



Experience

• As of January 2016, the Amtrak Guest Rewards program has 5.5 million members, up 16% vs. January 2015, or over 778K customers

• Since FY11, program enrollment has increased 89%. In FY15, AGR members generated 33% of total Amtrak revenue, up nearly 10 points since 2011.


Amtrak Guest Rewards Members by State

• Membership in all State Corridor states grew by double digits, with California and North Carolina seeing the highest percent change compared to last year

• California is now the state with the most members, surpassing New York during 1Q

StateDec 2015 Members

Dec 2014 Members

Percent Change

CA 672,244 569,775 18.0%CT 119,457 105,821 12.9%IL 259,701 223,615 16.1%IN 39,917 34,475 15.8%

MA 256,498 227,085 13.0%ME 23,185 20,483 13.2%MI 136,608 118,545 15.2%MO 68,726 58,626 17.2%NC 118,253 100,668 17.5%NY 664,811 579,087 14.8%OK 17,079 14,587 17.1%OR 93,118 82,076 13.5%PA 323,498 283,616 14.1%TX 112,145 97,884 14.6%VA 295,233 256,955 14.9%VT 13,348 11,678 14.3%

WA 143,998 126,908 13.5%WI 67,218 57,858 16.2%


Member Ticket Revenue by RouteFYTD Through Dec-15

Train SetMembers Total Lifts Lifts /Member Total Spend

Spend per Member

Spend per Lift

Adirondack 3,269 5,388 1.6 $294,588 $90.12 $54.67Albany-NiagaraFalls-Toront 9,718 18,247 1.9 $1,122,058 $115.46 $61.49BlueWater 4,311 7,918 1.8 $298,163 $69.16 $37.66Buses 34,302 70,889 2.1 $1,193,045 $34.78 $16.83CapitolCorridor 14,570 41,818 2.9 $2,312,368 $158.71 $55.30Carolinian 10,332 15,528 1.5 $1,075,716 $104.11 $69.28Cascades 14,376 29,344 2.0 $1,124,905 $78.25 $38.34Downeaster 4,854 13,258 2.7 $428,767 $88.33 $32.34Empire 26,697 87,287 3.3 $4,284,278 $160.48 $49.08EthanAllen 1,964 3,324 1.7 $189,274 $96.37 $56.94HeartlandFlyer 1,154 2,179 1.9 $62,015 $53.74 $28.46Hiawatha 9,902 27,034 2.7 $990,377 $100.02 $36.63Hoosier 873 1,292 1.5 $43,601 $49.94 $33.75Illini/Saluki 6,091 13,846 2.3 $443,791 $72.86 $32.05ILZephyr/CarlSandburg 4,395 11,405 2.6 $315,601 $71.81 $27.67Keystone 24,631 79,243 3.2 $4,098,839 $166.41 $51.72LincolnService 10,146 21,568 2.1 $627,893 $61.89 $29.11MissouriRiverRunner 3,345 7,058 2.1 $223,668 $66.87 $31.69NewHaven-Springfield 10,261 20,902 2.0 $1,025,979 $99.99 $49.09PacificSurfliner 35,286 88,581 2.5 $3,066,198 $86.90 $34.61Pennsylvanian 8,233 12,912 1.6 $759,578 $92.26 $58.83PereMarquette 2,098 4,320 2.1 $138,675 $66.10 $32.10Piedmont 3,403 7,148 2.1 $166,101 $48.81 $23.24SanJoaquin 22,572 60,001 2.7 $1,325,862 $58.74 $22.10Vermonter 2,104 3,779 1.8 $264,171 $125.56 $69.91Washington-Lynchburg 7,005 13,177 1.9 $939,260 $134.08 $71.28Washington-NewportNews 12,383 21,510 1.7 $1,506,496 $121.66 $70.04Washington-Norfolk 4,076 6,394 1.6 $405,347 $99.45 $63.39Washington-Richmond 6,854 11,953 1.7 $829,958 $121.09 $69.44Wolverine 10,484 22,241 2.1 $1,011,994 $96.53 $45.50

FY16 Q1

• Member revenue on State Corridor routes was 23.7% of total Amtrak ticket revenue

• Up 1.3 points vs. 1Q15

• Increasing member acquisition amongst riders on State Corridor routes will amplify the power of the program to drive engagement and incremental ridership/revenue


Amtrak Guest Rewards loyalty program

The Amtrak Guest Rewards program drives customer engagement, ridership and revenue through:

• Communications

• Promotions

• Partnerships

Performance is measured by:

• New member acquisition

• Member ridership/ticket revenue

• AGR promotion results

• Email campaign performance


2016 Enhancements to the Amtrak Guest Rewards Program


Scope ofService

Fares/Benefits



Experience

• In January, the Amtrak Guest Rewards program introduced changes to how members earn and redeem points for Amtrak travel. – Now members redeem points the same way they

earn them – based on ticket price– Redemption is simpler. We’ve eliminated the

complicated zones and maps.

– Rewards are easier to reach, particularly for State Corridor routes. We’ve lowered the minimum points to redeem from 1500 to 800 points so members will reach their first free trip faster

– Earning is simpler. Members still earn 2 points per dollar spent on Amtrak travel but we’ve removed the 100 point minimum and added new bonus points for Business class travel


Simpler to redeem on Amtrak.com


Scope ofService

Fares/Benefits



Experience

• Improvements to the Amtrak travel redemption experience.

– Customers can easily toggle between price in dollars or points when booking on Amtrak.com.

– Members no longer need to log in twice since we now have a single Amtrak customer profile and log-in.

– Monthly passes and multi-ride tickets can now be purchased with points through the contact centers.


Our Customer Communication Channels


Engaging Customers via Amtrak.com: Overview

• Amtrak.com delivers a personalized experience to over 425K visitors each day through geo-targeted promotions. Examples of homepage campaigns supporting State Corridor routes from FY15 and FY16 1Q follow


Amtrak.com Promotions Supporting State Corridor Routes

• Midwest price point advertising runs continuously on Amtrak.com, generating almost $80K in booked revenue 1Q16



Campaign promoting travel on the Vermonter with a 15% discount for booking three or more days in advance.

Campaign promoting a buy one, get one free companion fare on the Downeaster.

Campaign Run Dates Impressions Clicks Click Rate BookingsBooked Revenue

Average Per Booking

4/22/2015-1/31/2016 78,253 1,018 1.30% 276 $28,592.28 $103.60

Campaign Run Dates Impressions Clicks Click Rate BookingsBooked Revenue

Average Per Booking

7/6/2015-1/31/2016 (ongoing) 173,351 1,787 1.03% 288 $41,198 $143



Individual 20% discounts for Illinois, Michigan and Missouri travel. One example of creative is shown to the left. Each state has its own targeted banner.

Campaign promoting travel in Oregon with the 14 day advance purchase, 30% off fares. This campaign also features targeted landing page content to two different audiences.

Campaign Run Dates Impressions ClicksClick Rate Bookings

Booked Revenue

Average Per Booking

12/1/2015-1/31/2016 - IL 168,943 917 0.54% 218 $17,572.80 $80.6112/1/2015-1/31/2016 - MI 84,519 604 0.71% 116 $11,910.65 $102.6812/1/2015-1/31/2016 - MO 47,217 344 0.73% 62 $6,981.80 $112.61


Booked Revenue

Average Per Booking

3/20/2015 - 1/31/2016 (ongoing) 123,384 1,039 0.84% 173 $15,661.44 $90.53



Capitol Corridor promotion for 50% off fares for friends and family. Results show a summary of FY15 results as well as FY16 Q1 results (campaign is still live).

Campaign promoting travel on the Pacific Surfliner to Del Mar for the fall race season.


Booked Revenue

Average Per Booking

10/29/2015 – 11/29/2015 226,897 584 0.26% 81 $9,966.00 $123.04


Booked Revenue

Average Per Booking

1/30/2015-1/31/2016 (ongoing) 808,361 5,370 0.66% 982 $140,323.01 $142.90


New Approaches – Wanderu Ground Transport MetaSearch Engine


Engaging Customers Through Email Marketing: Overview

• During FY15, Amtrak sent 184M emails to the 2.4M opted-in customers, generating $10.8M in directly attributable revenue

• Email marketing campaigns communicate highly relevant messages that highlight the value, benefits and services that Amtrak offers

• Campaigns may include multiple versions to ensure individuals receive the content most relevant to their interests and travel behavior

• Campaigns are targeted to Amtrak Guest Rewards members as well as Amtrak customers (non-members) who have opted-in to email marketing

• Campaign performance is measured by clicks, page views and attributable ticket revenue


• Amtrak has a high email opt-in rate, with all State Corridor states at 33% or higher

• Revenue per email is higher for members than non-members with a typical fare related email performing at $.09 for members and $.07 for non-members

• The AGR monthly eStatement typically has the highest open rate at 18%

State MembersEmailable Members

% EmailableEmailable Non-Mbrs

CA 678,616 248,915 36.7% 79,495CT 120,455 40,759 33.8% 8,504IL 262,142 100,581 38.4% 32,480IN 40,294 15,043 37.3% 7,555

MA 258,669 86,172 33.3% 15,829ME 23,369 8,685 37.2% 3,181MI 137,962 54,537 39.5% 22,352MO 69,374 27,639 39.8% 12,123NC 119,355 47,563 39.9% 17,889NY 670,879 228,362 34.0% 49,269OK 17,224 6,737 39.1% 4,288OR 93,871 34,279 36.5% 10,773PA 326,578 116,764 35.8% 25,672TX 112,926 40,720 36.1% 21,076VA 297,990 112,447 37.7% 25,452WA 145,184 51,941 35.8% 15,783WI 67,829 24,679 36.4% 9,532

Customers Opted-in to email by State


Regional Email Campaign – Amtrak Virginia

• Email campaign to members and customers promoting Amtrak VirginiaService

• Deployed July 30, 2015


Regional Email Campaign – Cascades

• Email campaign to members and customers promoting Cascades Saver Fares

• Deployed August 18, 2015


Regional Email Campaign – Downeaster

• Email campaign to members and customers promoting Downeaster BOGO

• Deployed November 17, 2015


Regional Email Campaign – Big Ten

• Email campaign to members and customers promoting travel to the Big Ten tournament

• Deployed February 9, 2016


National Email Campaign – AGR Double Days

• Email campaign to members promoting Double Points offer

• Deployed September 21, 2015


National Email Campaign – Thanksgiving Travel

• Email campaign to members and customers promoting Holiday Travel

• Deployed November 6, 2015


National Email Sample – Monthly eStatement

The monthly eStatement is received by 2.2M members and averages $150K in revenue/deployment. Messages within the mailing are highly targeted to ensure each member receives highly relevant content


Engaging Customers Through Paid Digital Advertising: Overview

• All State Corridor routes benefit from ongoing national and regional paid digital advertising efforts, including paid search and digital display advertising

• For those state providing funding, paid digital geo-targeted advertising helps increase product awareness and revenue


Paid Digital Advertising Efforts: Paid Search

• Paid search campaigns include business line specific campaigns, as well as the brand campaign, both of which benefit state partners.

– Brand campaign includes general brand terms such as Amtrak and Amtrak tickets, as well as train terms such as train schedules, train routes, and resulted in $6.3M in state partner revenue in Q4 FY15

– State train names and city pairs such as Amtrak Portland to Seattle, Amtrak Virginia, Amtrak Milwaukee Chicago are part of business line campaigns

10%

27%

45%

18%

Brand Campaign: Share of Bookings

Acela Regional State Supported Long Distance

21%

31%23%

25%

Brand Campaign: Share of Revenue

Acela Regional State Supported Long Distance


Paid Digital Advertising Examples: Keystone Service

• Digital advertising highlighting low fares drive the highest response rates

• Moving forward, we will be promoting “price points” whenever feasible, promoting the actual fare level e.g. “From $29”


Paid Digital Advertising Examples: Midwest Routes

• The most effective efforts combine “paid channels” (advertising) and “owned channels” (Amtrak.com and Email), creating multiple opportunities for customers to be exposed to consistent and impactful messaging

Paid Advertising

Amtrak.com Homepage


Paid Digital Advertising Examples: Promotions

• We also leverage paid advertising to promote special events in creative ways

• In conjunction with “Arch Madness” in St. Louis, we promoted travel to STL for the Missouri Valley Conference (MVC) tournament via the MVC Facebook page

• In conjunction with VisitKC.com, we promoted travel to the Missouri Wine Country via a sweepstakes offer


Conclusions

• We have some significant strengths: a highly engaged, tech-savvy and loyal customer base

• We have the right tools: a personalized web experience, highly targeted and relevant email marketing capabilities, and the ability to reach new and existing customers through engaging digital advertising

• We have a lot of success stories, and we will continue to focus on:

– Identifying additional opportunities – how can we help you?

– Developing additional integrated campaigns, using all of the our levers to amplify the messages

– Coordinating efforts between Amtrak and State Partners

– Growing Amtrak Guest Rewards membership and Email opt-ins

• Questions?


Thank You

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