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Flevy Management Insights Case Study
Customer-Centric Strategy for Urban Transit Service in Competitive Markets


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Customer Decision Journey 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TLDR An urban transit service company faced a 15% decline in ridership due to increased competition and outdated technology, necessitating a transformation of the customer experience through improved data analytics and operational efficiency. As a result, ridership increased by 8% and customer satisfaction rose significantly, highlighting the importance of leveraging technology and sustainability practices to regain market share and improve overall performance.

Reading time: 10 minutes

Consider this scenario: An urban transit service company faces significant challenges in mapping and optimizing the customer decision journey amid increasing competition.

Externally, the organization is contending with a 20% increase in competitor activity, including the emergence of app-based transportation options, which has led to a 15% decline in ridership over the past two years. Internally, the company struggles with outdated technology and insufficient data analytics capabilities, hindering its ability to understand and enhance the customer experience effectively. The primary strategic objective is to transform the customer experience, leveraging technology and data analytics to regain market share and improve profitability.



This urban transit service is experiencing declining ridership and revenue due to increased competition and internal technological shortcomings. It appears that the root cause of these challenges may be the company's inadequate focus on the customer decision journey and an underutilization of data analytics to understand and improve customer experiences. Equally, the lack of modern technology could be affecting operational efficiency and customer satisfaction.

External Assessment

The transit and ground passenger transportation industry is undergoing significant changes, driven by technological advancements and changing consumer preferences. The introduction of app-based transportation services has heightened competition and set new standards for customer experience.

Examining the primary forces shaping the industry reveals:

  • Internal Rivalry: Intense, due to the proliferation of both traditional and app-based competitors.
  • Supplier Power: Moderate, with a diverse range of technology and vehicle suppliers.
  • Buyer Power: High, as customers have more choices and demand higher service levels.
  • Threat of New Entrants: High, especially from technology-driven companies entering the market with innovative solutions.
  • Threat of Substitutes: High, with alternatives ranging from personal vehicles to new, tech-enabled mobility services.

Emergent trends in the industry include the increasing importance of sustainability, the rise of smart cities, and the integration of technology in transportation. These trends lead to major changes such as:

  • Shift towards electric and hybrid vehicles, offering opportunities for differentiation but requiring significant investment.
  • Customer expectations for digital experiences, creating opportunities for tech-savvy companies but posing risks for those unable to adapt.
  • Regulatory changes aimed at reducing carbon emissions, presenting both challenges in compliance and opportunities in green transportation.

The PESTLE analysis indicates that political support for green initiatives, economic fluctuations affecting disposable income, social trends towards shared and sustainable mobility, technological advancements in transportation, environmental concerns driving regulations, and legal frameworks around safety and data privacy are all influencing the industry landscape.

For effective implementation, take a look at these Customer Decision Journey best practices:

Customer Journey Mapping (143-slide PowerPoint deck)
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Customer Journey Mapping - Guide & Templates (67-slide PowerPoint deck and supporting PowerPoint deck)
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Internal Assessment

The company has a strong foundation in community engagement and operational experience but lacks in technological innovation and data-driven decision-making capabilities.

The MOST analysis—covering Mission, Objectives, Strategies, and Tactics—suggests that while the company's mission aligns with community service and sustainability, its objectives need realignment towards customer-centricity and digital transformation. The strategies and tactics must then be adapted to leverage technology and data analytics effectively.

The Core Competencies analysis reveals that the organization excels in operational logistics but falls short in customer experience management and innovation. To remain competitive, it must develop these areas as new core competencies.

The Value Chain analysis highlights inefficiencies in service operations and customer service processes. Optimizing these areas through technology can lead to significant improvements in customer satisfaction and operational cost savings.

Strategic Initiatives

  • Enhance Customer Decision Journey: This initiative aims to map and optimize every touchpoint in the customer's journey, from discovery to post-ride feedback, using advanced analytics and customer feedback mechanisms. The intended impact is to increase customer satisfaction and loyalty, driving repeat usage. The initiative will create value by improving the customer experience, leading to increased ridership and revenue. It requires investment in customer relationship management (CRM) systems and analytics tools.
  • Technology Upgrade for Operational Efficiency: By modernizing the fleet management and scheduling systems, this initiative seeks to improve service reliability and efficiency. The expected outcome is a reduction in operational costs and an improvement in service quality, enhancing overall competitiveness. The source of value comes from cost savings and increased customer satisfaction. This will necessitate investment in new technologies and training for staff.
  • Sustainability Integration: Focusing on transitioning to electric buses and promoting eco-friendly practices, this initiative aims to position the company as a leader in sustainable urban transit. Expected to enhance brand image and appeal to environmentally conscious consumers, it also aligns with regulatory trends. Resources required include capital investment in green technology and vehicles, as well as marketing to communicate the company's sustainability efforts.

Customer Decision Journey 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.


If you cannot measure it, you cannot improve it.
     – Lord Kelvin

  • Ridership Growth: Measures the effectiveness of customer experience improvements and technology upgrades.
  • Operational Cost Reduction: Tracks the financial impact of enhanced operational efficiency.
  • Customer Satisfaction Score: A direct indicator of success in enriching the customer decision journey.

These KPIs offer insights into the strategic plan's effectiveness in addressing both internal and external challenges. Improved ridership and customer satisfaction scores directly reflect the success of initiatives aimed at enhancing the customer decision journey and operational efficiency, while cost reduction indicates improved internal processes.

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.

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Customer Decision Journey Best Practices

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

Customer Decision Journey Deliverables

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

  • Customer Decision Journey Mapping Report (PPT)
  • Technology Upgrade Plan (PPT)
  • Operational Efficiency Improvement Framework (PPT)
  • Sustainability Integration Roadmap (PPT)
  • Financial Impact Model (Excel)

Explore more Customer Decision Journey deliverables

Enhance Customer Decision Journey

The strategic team adopted the Customer Journey Mapping (CJM) and Service Blueprint frameworks to enhance the customer decision journey. CJM was instrumental in visualizing the end-to-end experience of customers, highlighting pain points and opportunities for engagement. It proved useful in this initiative by providing a holistic view of the customer experience, identifying areas where improvements could lead to increased satisfaction and loyalty. Following this insight, the organization:

  • Conducted comprehensive research to outline the existing customer decision journey, identifying key touchpoints from initial awareness through to post-ride evaluation.
  • Utilized customer feedback and analytics to pinpoint friction points and areas of dissatisfaction within the current journey.
  • Designed targeted interventions at critical touchpoints to enhance the overall customer experience, such as streamlining the booking process and improving post-ride communication.

Service Blueprinting was then employed to delve deeper into the service delivery processes that underpin the customer journey, ensuring that operational capabilities aligned with the desired customer experience. This framework facilitated a detailed analysis of the service interaction layers, from physical evidence to support processes. The team executed the following steps:

  • Mapped out the entire service process, connecting customer touchpoints to specific frontstage and backstage activities.
  • Identified discrepancies between the current service delivery and customer expectations at each stage of the journey.
  • Implemented process improvements and technological upgrades to enhance service efficiency and effectiveness, particularly at moments of truth identified in the CJM.

The integration of Customer Journey Mapping and Service Blueprint frameworks significantly improved the customer decision journey. Customer feedback post-implementation highlighted a notable increase in satisfaction, particularly in areas that had previously been sources of friction. Moreover, the clearer understanding of the interdependencies between customer touchpoints and internal processes led to more cohesive and customer-centric service delivery, driving an uptick in ridership numbers and enhancing overall brand loyalty.

Technology Upgrade for Operational Efficiency

To address the strategic initiative of upgrading technology for operational efficiency, the team utilized the Lean Management and Six Sigma frameworks. Lean Management was chosen for its emphasis on maximizing customer value while minimizing waste, making it highly relevant for streamlining operations. Through its implementation, the organization:

  • Identified non-value-adding processes within operations that could be eliminated or simplified, leading to immediate improvements in operational efficiency.
  • Adopted a continuous improvement mindset, encouraging all employees to contribute ideas for enhancing service delivery and reducing waste.

Simultaneously, Six Sigma principles were applied to reduce variation in service delivery and improve the reliability of transit operations. This methodology supported the organization's goal of enhancing customer satisfaction through consistent and high-quality service. The implementation involved:

  • Conducting a detailed analysis of operational data to identify root causes of process variations and inefficiencies.
  • Implementing targeted improvements based on data-driven insights, such as optimizing scheduling algorithms and vehicle maintenance routines.

The combination of Lean Management and Six Sigma methodologies yielded substantial improvements in operational efficiency and service quality. The strategic initiative led to a reduction in operational costs, as inefficiencies and redundant processes were eliminated. Furthermore, the focus on reducing variation in service delivery resulted in more reliable and punctual transit services, significantly enhancing customer satisfaction and contributing to an increase in ridership.

Sustainability Integration

For the strategic initiative focused on sustainability integration, the organization embraced the Triple Bottom Line (TBL) and Cradle to Cradle (C2C) frameworks. The TBL framework, which emphasizes social, environmental, and financial considerations, guided the company in evaluating its sustainability efforts beyond mere profit. This approach ensured that:

  • Environmental goals were aligned with corporate objectives, leading to the adoption of electric buses and reduction of carbon emissions.
  • Social impact, including community health and employee well-being, was factored into decision-making processes, enhancing the company's reputation and employee satisfaction.

Cradle to Cradle principles further supported the initiative by promoting the design of products and systems that are inherently sustainable and circular in nature. By applying C2C, the organization:

  • Assessed the lifecycle impacts of its fleet and infrastructure, leading to investments in vehicles and technologies that are both energy-efficient and capable of being repurposed at the end of their life.
  • Implemented waste reduction and recycling programs, minimizing the environmental footprint of its operations.

The application of the Triple Bottom Line and Cradle to Cradle frameworks significantly advanced the company's sustainability efforts. Not only did these initiatives reduce the environmental impact of the transit service, but they also fostered stronger community ties and improved financial performance through cost savings and enhanced brand value. The strategic focus on sustainability distinguished the company in a competitive market, attracting environmentally conscious customers and contributing to increased ridership and revenue.

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Key Findings and Results

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

  • Ridership increased by 8% year-over-year, reversing the previous decline and indicating improved customer satisfaction and loyalty.
  • Operational costs were reduced by 12% due to efficiencies gained from technology upgrades and process improvements.
  • Customer satisfaction scores rose by 15 points, reflecting enhancements in the customer decision journey and service reliability.
  • The introduction of electric buses and sustainability practices led to a 20% reduction in carbon emissions.
  • Brand perception improved, particularly among environmentally conscious consumers, contributing to a 5% increase in market share.

The strategic initiatives undertaken by the urban transit service company have yielded significant positive outcomes, notably in reversing the decline in ridership and improving operational efficiencies. The increase in ridership and customer satisfaction scores directly correlates with the efforts to enhance the customer decision journey and operational reliability. The reduction in operational costs and carbon emissions demonstrates the effectiveness of the technology upgrades and sustainability integration. However, the results were not uniformly successful across all metrics. The 8% increase in ridership, while positive, falls short of fully offsetting the previous 15% decline, suggesting that further enhancements or additional initiatives may be necessary to fully regain lost market share. Additionally, the implementation of new technologies and sustainability practices likely incurred substantial upfront costs, the recovery of which was not explicitly addressed. Alternative strategies, such as more aggressive marketing of the new customer experience and sustainability efforts, or partnerships with technology firms for cost-effective solutions, might have amplified the outcomes.

Given the current results and analysis, the recommended next steps include a deeper dive into customer data analytics to uncover more granular insights into customer preferences and behavior. This could inform more targeted marketing and service design strategies to further increase ridership. Additionally, exploring strategic partnerships with technology and sustainability-focused organizations could accelerate innovation while potentially mitigating costs. Finally, continuous improvement in operational efficiency should remain a priority, leveraging ongoing feedback from both customers and employees to identify further areas for enhancement.

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

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