Skip to Content
Author's profile photo Bernard Chung

STM: Driving Marketing Innovation In A New Way

It’s one thing to recognize the importance of engaging with consumers and improving the consumer experience. Canadian-based Societe de transport de Montreal (STM), the fourth largest public transit organization in North America, is doing more than just talk the talk. STM has launched a mobile reward and recognition program for its 1.2 million daily passengers aimed at increasing ridership 40 percent by 2020 and non-fare revenues by redefining the consumer experience.

The transit authority realized that while consumers’ desire for instant gratification is nothing new, coming up with a loyalty program that is fun, relevant and targeted is. STM saw the need to recognize riders’ interests and likes as much as possible while trying to get them to use public transportation more frequently during off peak times as well as peak.

In an ever increasing digital world, users are continually bombarded with information from many channels; more information than they can digest. STM knew that getting the right information at the right time would help consumers make smart decisions on saving time and money and finding the right products. In developing its new location-based marketing program, STM focused on four attributes related to relevance: location, profile, shopping interest and date and time.

The transit authority, which has 250 bus lines and 68 subway stations, has partnered with close to 340 retailers from large grocery and pharmaceutical chains down to mom and pop shops. STM is delivering personalized offers on behalf of the merchants to its audience of riders based on those attributes, and the results so far are pretty compelling. In a 48-hour period, there were 4,800 downloads from the Apple iTunes store and 328,000 promotions sent. Some 67 percent of those offers have been viewed and there has been a 47 percent conversion rate. In addition, it is the number one app downloaded in Canada in the iTunes lifestyle category.

Because STM prides itself on being eco-friendly, as an added incentive, users of the app can also collect “trees” with purchases that can be redeemed for upgrades and offers.

The program has been a huge win-win for STM and its merchants in the creation of a brand new business model that STM says has far exceeded its expectations. Hear more from STM’s CMO Pierre Bourbonniere, a featured speaker at SAP’s SapphireNOW conference, on how this transportation authority has transformed itself through mobile marketing, as well as other thought leaders including Robert Rose, Digital Clarity and Kevin Cochrane of Opentext on The Customer Edge TV, June 27 at 11am ET.

Assigned Tags

      Be the first to leave a comment
      You must be Logged on to comment or reply to a post.