Flevy Management Insights Case Study
Customer Care Strategy for Urban Transit Service in Competitive Markets
     David Tang    |    Customer Care


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Customer Care to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The transit agency saw a 15% drop in ridership from service quality issues and rideshare competition. To address this, we implemented strategic initiatives like digital transformation and partnerships, resulting in a 20% boost in customer satisfaction and a 10% increase in ridership. This underscores the need to adapt to customer demands and utilize technology for improved service delivery.

Reading time: 9 minutes

Consider this scenario: The organization is a public transit agency operating in a densely populated urban area, facing challenges in maintaining high levels of customer care amidst increasing competition from rideshare companies.

It has observed a 15% decrease in ridership over the past year, attributed to a combination of deteriorating service quality, operational inefficiencies, and the convenience offered by alternative transportation options. Internally, outdated technology and a lack of customer-centric initiatives have hindered its ability to improve service delivery and customer satisfaction. The primary strategic objective of the organization is to enhance customer care and operational efficiency to regain ridership and compete effectively in the evolving urban transportation market.



This organization, amidst a shifting urban mobility landscape, finds itself at a crossroads. The decline in ridership and customer satisfaction points towards a pressing need for a strategic overhaul focused on customer care and operational agility. The underlying issues seem to stem from an outdated approach to customer engagement and operational processes that no longer align with the expectations of a modern urban commuter.

Industry Analysis

The urban transit and ground passenger transportation industry is experiencing transformative change, driven by technological advancements and evolving commuter preferences. Increased environmental awareness and urbanization are influencing public transport modalities, yet the rise of rideshare services poses significant challenges to traditional transit models.

To understand the competitive dynamics, an analysis reveals:

  • Internal Rivalry: High, as traditional public transit agencies compete against each other and with an array of rideshare and micro-mobility services.
  • Supplier Power: Moderate, with a few dominant technology providers for ticketing and operational management systems.
  • Buyer Power: High, as commuters have more transportation options than ever before.
  • Threat of New Entrants: High, particularly from technology-driven transportation service providers.
  • Threat of Substitutes: High, with ridesharing, biking, and walking as viable alternatives for city commuters.

Emergent trends include the adoption of smart city initiatives, integration of mobility-as-a-service (MaaS), and a growing preference for sustainable transportation options. These trends lead to significant shifts in industry dynamics:

  • Increased adoption of digital ticketing and real-time tracking technologies presents opportunities for improved customer service but requires substantial upfront investment.
  • Collaborations with rideshare companies and e-scooter services offer the potential for last-mile connectivity solutions but risk cannibalizing traditional ridership.
  • Environmental sustainability initiatives can enhance public perception and support but necessitate long-term capital expenditure.

For a deeper analysis, take a look at these Industry Analysis best practices:

Strategic Analysis Model (Excel workbook)
Consolidation-Endgame Curve Framework (29-slide PowerPoint deck)
Porter's Five Forces (26-slide PowerPoint deck)
Market Entry Strategy Toolkit (109-slide PowerPoint deck)
Industry Analysis and Competitive Advantage Toolkit (99-slide PowerPoint deck)
View additional Customer Care best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Internal Assessment

The organization's strengths include a comprehensive network and a strong brand identity within the urban area. However, it struggles with operational inefficiencies and outdated technology.

SWOT Analysis

Strengths lie in extensive route coverage and established infrastructure. Opportunities emerge from digital transformation and strategic partnerships for last-mile solutions. Weaknesses include lagging technological adoption and operational inefficiencies. Threats stem from increasing competition and changing commuter behaviors.

McKinsey 7-S Analysis

The organization aligns well in terms of shared values and strategy but falls short on systems, structure, and skills necessary for adapting to the digital era. Enhancing technological capabilities and re-skilling staff are critical for future success.

RBV Analysis

Key resources include a vast transit network and experienced workforce. However, leveraging these resources effectively requires upgrading technological capabilities and adopting a more customer-centric approach to service delivery.

Strategic Initiatives

Based on the insights from the industry analysis and internal assessment, the leadership team has identified the following strategic initiatives to be pursued over the next 3-5 years:

  • Digital Transformation for Enhanced Customer Experience: Implement an integrated digital platform for ticketing, real-time tracking, and customer feedback, aimed at improving service accessibility and satisfaction. The initiative will create value through increased ridership and operational efficiency. Resources required include technology investment and staff training.
  • Partnerships for Last-Mile Connectivity: Establish strategic partnerships with rideshare and micro-mobility providers to offer comprehensive door-to-door mobility solutions. This initiative seeks to enhance the value proposition of public transit by addressing the last-mile challenge, potentially increasing ridership. Partnerships negotiation and integration platforms will be key resources.
  • Customer Care Excellence Program: Launch a comprehensive program to elevate customer service standards across all touchpoints. This initiative will focus on staff training, enhanced communication channels, and feedback-driven service improvements. Expected value includes improved customer satisfaction and loyalty. Training programs and customer relationship management systems are the required resources.

Customer Care Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Tell me how you measure me, and I will tell you how I will behave.
     – Eliyahu M. Goldratt

  • Customer Satisfaction Score: Measures the effectiveness of customer care improvements and digital transformation initiatives.
  • Ridership Growth Rate: Tracks the impact of strategic initiatives on increasing transit use.
  • Operational Efficiency Metrics: Monitors improvements in service delivery times and cost reductions achieved through operational enhancements.

These KPIs offer insights into the success of the strategic initiatives in enhancing customer satisfaction, growing ridership, and improving operational efficiency. They will guide iterative adjustments to strategy implementation to ensure alignment with overall objectives.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Customer Care Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Customer Care. These resources below were developed by management consulting firms and Customer Care subject matter experts.

Customer Care Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Digital Transformation Roadmap (PPT)
  • Last-Mile Partnership Framework (PPT)
  • Customer Care Training Program Outline (PPT)
  • Operational Efficiency Improvement Plan (Excel)

Explore more Customer Care deliverables

Digital Transformation for Enhanced Customer Experience

The organization adopted the Customer Journey Mapping (CJM) and the Balanced Scorecard frameworks to guide the digital transformation initiative aimed at enhancing customer experience. Customer Journey Mapping was utilized to understand and improve the end-to-end customer experience by visualizing the customer's path through all touchpoints with the public transit system. This framework proved invaluable in identifying critical pain points and opportunities for digital intervention. The Balanced Scorecard, on the other hand, provided a structured approach to implementing and measuring the initiative's success across multiple dimensions, including customer perspectives.

Following the selection of these frameworks, the implementation team undertook the following steps:

  • Conducted workshops with customers and front-line employees to map out the current state of the customer journey, highlighting areas where digital tools could enhance the experience.
  • Developed a digital transformation roadmap that prioritized initiatives based on their impact on the customer experience and operational efficiency.
  • Implemented the Balanced Scorecard approach to define KPIs for each strategic objective, ensuring alignment with the overall goal of customer experience enhancement.
  • Regularly reviewed progress against the Balanced Scorecard to adjust strategies and initiatives in response to feedback and performance data.

The implementation of these frameworks led to a comprehensive understanding of the customer experience, enabling targeted improvements through digital solutions. The Balanced Scorecard ensured that the initiative remained focused on strategic objectives, resulting in a significant increase in customer satisfaction scores and operational efficiency metrics.

Partnerships for Last-Mile Connectivity

For the strategic initiative focused on establishing partnerships for last-mile connectivity, the organization leveraged the Ecosystem Mapping and the Value Proposition Canvas frameworks. Ecosystem Mapping allowed the team to visualize the complex network of stakeholders involved in the urban mobility landscape, identifying potential partners and understanding their roles, needs, and influences. The Value Proposition Canvas was instrumental in designing compelling value propositions for potential partners, ensuring alignment of interests and mutual benefits.

In applying these frameworks, the team executed the following actions:

  • Mapped the urban mobility ecosystem to identify key players in rideshare and micro-mobility services, as well as other relevant stakeholders.
  • Used the Value Proposition Canvas to articulate the benefits and value that the partnership would bring to each stakeholder, focusing on creating win-win scenarios.
  • Negotiated partnership agreements that were informed by the insights gained from Ecosystem Mapping and the Value Proposition Canvas, ensuring that they addressed the needs and expectations of all parties.
  • Developed joint marketing and service integration plans with partners, leveraging the insights from the ecosystem and value proposition analyses.

The strategic use of Ecosystem Mapping and the Value Proposition Canvas enabled the organization to form effective partnerships with key players in the urban mobility space. These partnerships have expanded the organization's service offering, providing comprehensive last-mile solutions that have led to increased ridership and enhanced customer satisfaction.

Customer Care Excellence Program

The organization adopted the Service Quality (SERVQUAL) and the Employee Engagement frameworks to drive the Customer Care Excellence Program. The SERVQUAL framework was used to systematically measure and improve the quality of customer service by identifying gaps between customer expectations and their perceptions of the service received. The Employee Engagement framework focused on enhancing the motivation, satisfaction, and commitment of employees, which is critical for delivering exceptional customer care.

The implementation process involved the following steps:

  • Utilized the SERVQUAL model to survey customers on their expectations and perceptions across five dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy.
  • Analyzed survey results to identify service gaps and areas for improvement, then developed targeted initiatives to address these gaps.
  • Implemented the Employee Engagement framework by conducting workshops and training sessions aimed at enhancing employees' skills and motivation to deliver superior customer service.
  • Monitored improvements in service quality and employee engagement levels through follow-up surveys and performance metrics, making adjustments as necessary.

The application of the SERVQUAL and Employee Engagement frameworks led to marked improvements in the quality of customer service and employee motivation. This holistic approach not only elevated the customer experience but also fostered a culture of excellence and commitment among employees, contributing to the overall success of the Customer Care Excellence Program.

Additional Resources Relevant to Customer Care

Here are additional best practices relevant to Customer Care from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Implemented digital transformation initiatives, resulting in a 20% increase in customer satisfaction scores.
  • Established partnerships with rideshare and micro-mobility services, contributing to a 10% increase in ridership.
  • Enhanced operational efficiency by 15% through the adoption of new technology and process optimization.
  • Customer Care Excellence Program led to a 25% improvement in employee engagement scores.
  • Service quality, as measured by the SERVQUAL model, showed a significant reduction in the gap between customer expectations and perceptions.

The strategic initiatives undertaken by the organization have yielded notable successes in enhancing customer satisfaction, increasing ridership, and improving operational efficiency. The digital transformation initiative, in particular, has been instrumental in modernizing the customer experience, as evidenced by the substantial increase in customer satisfaction scores. Partnerships for last-mile connectivity have addressed a critical barrier to public transit usage, contributing to ridership growth. However, while operational efficiency improvements are commendable, they fell short of the transformative impact anticipated, suggesting that further optimization and technological upgrades may be necessary. The Customer Care Excellence Program's success in boosting employee engagement is a positive indicator of internal cultural shifts towards customer-centricity, though translating this into consistent service quality improvements remains an ongoing challenge.

For next steps, it is recommended to continue investing in technology that automates and optimizes operational processes, potentially exploring AI and machine learning solutions for predictive maintenance and dynamic scheduling. Further, expanding the scope and depth of partnerships within the urban mobility ecosystem could enhance service offerings and customer convenience. Finally, building on the success of the Customer Care Excellence Program, a continuous learning and development framework for employees should be established to sustain service quality improvements and adapt to evolving customer expectations.

Source: Customer Care Strategy for Urban Transit Service in Competitive Markets, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Customer Experience Reinvention for Telecom Operator

Scenario: The company is a mid-sized telecom operator in North America, struggling with declining customer satisfaction and increasing churn rates.

Read Full Case Study

Telecom Customer Care Strategy for Specialty B2B Services

Scenario: The telecom firm specializes in B2B services within the semiconductor industry and is grappling with a high volume of complex customer inquiries that lead to long resolution times and customer dissatisfaction.

Read Full Case Study

Customer Care Strategy for Ecommerce in North America

Scenario: The organization, a burgeoning ecommerce platform in North America, is facing significant challenges in maintaining customer satisfaction and loyalty amidst rapid expansion.

Read Full Case Study

Customer Care Transformation for Electronics Manufacturer

Scenario: The company is a mid-sized electronics manufacturer in North America struggling with an outdated Customer Care model.

Read Full Case Study

PESTEL Transformation in Power & Utilities Sector

Scenario: The organization is a regional power and utilities provider facing regulatory pressures, technological disruption, and evolving consumer expectations.

Read Full Case Study

Organizational Change Initiative in Semiconductor Industry

Scenario: A semiconductor company is facing challenges in adapting to rapid technological shifts and increasing global competition.

Read Full Case Study

Operational Efficiency Enhancement in Aerospace

Scenario: The organization is a mid-sized aerospace components supplier grappling with escalating production costs amidst a competitive market.

Read Full Case Study

Organizational Alignment Improvement for a Global Tech Firm

Scenario: A multinational technology firm with a recently expanded workforce from key acquisitions is struggling to maintain its operational efficiency.

Read Full Case Study

Direct-to-Consumer Growth Strategy for Boutique Coffee Brand

Scenario: A boutique coffee brand specializing in direct-to-consumer (D2C) sales faces significant organizational change as it seeks to scale operations nationally.

Read Full Case Study

Sustainable Fishing Strategy for Aquaculture Enterprises in Asia-Pacific

Scenario: A leading aquaculture enterprise in the Asia-Pacific region is at a crucial juncture, needing to navigate through a comprehensive change management process.

Read Full Case Study

Balanced Scorecard Implementation for Professional Services Firm

Scenario: A professional services firm specializing in financial advisory has noted misalignment between its strategic objectives and performance management systems.

Read Full Case Study

Organizational Change Initiative in Luxury Retail

Scenario: A luxury retail firm is grappling with the challenges of digital transformation and the evolving demands of a global customer base.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.