International Transportation (68) 1 | 2016 44 The multi-modal customer Customer needs and preferences in a world of connected-mobility Multi-modal mobility solutions, connected mobility, customer needs, multi-modal user, market segmentation Connected mobility is on everyone’s agenda. Public and private transport, information technology or sharing services, among others, are seeking to intensify their cooperation activities to provide a diverse and integrated mobility portfolio to their customers. To begin with it would be essential to deine these multi-modal customers. What are their needs? Do multi-modal mobility solutions exist that are preferred by these customers and hence should be implemented irst? Authors: Sophia von Berg, Andreas Graf T he rise of the hybrid consumer who is characterized by situational consumption patterns and the preference for individual bundle oferings instead of single products or services represents a relevant demandside evolution. Rather than preferring a particular mode of transportation, customers choose the most suitable means of transport for their speciic purpose. The system of multi-modal mobility supports this development by providing mobility solutions consisting of a variety of choices that are no longer strictly divided between either private or public transport. The aim of this study is to understand the multi-modal customers in terms of their needs and preferences. For this purpose, relevant consumer needs have been identiied to bring them into relation with various multi-modal mobility solutions. Insights into which multi-modal mobility ofer meets which customer’s needs allow a detailed description of the multi-modal customers. Furthermore, the mobility market has been segmented into ive customer groups. The results to be covered below should be highly useful for practitioners, who aim to develop their marketing strategy for multi-modal mobility solutions. Methodology Based on an extensive literature review, we argue that the perceived beneits that consumers look for in a service are mostly expressed through functional and psychologically based values. Hence identifying the structure of customer needs is fundamental for developing successful multimodal mobility solutions. For this reason, we carried out a focus group study with mobility experts and a secondary analysis of workshop data to identify relevant customer needs. A subsequent survey was conducted during September and November 2015 using Computer Assisted Web Inter- Source: Sophia von Berg SCIENCE & RESEARCH Mobility Market International Transportation (68) 1 | 2016 45 Mobility Market SCIENCE & RESEARCH views (CAWI, n = 1005). We interviewed people between the ages of 18 and 69 who live in German cities with more than 100,000 inhabitants. The stratiied sample was selected according to the individuals’ age- and sex. In addition to their individual- needs patterns, participants were asked-about their likelihood to use various multi-modal mobility solutions, preferences regarding diferent means of transport as well as sociodemographic characteristics. Multi-modal mobility solutions Multi-modal mobility solutions are integrated combinations of services individually customized for a group of customers. The solutions should provide a better outcome than the sum of the individual components. In the context of mobility, solution oferings will integrate various means of transport and new mobility services into one product. Within the study, ive groups of multi-modal mobility solutions were examined: (1) multi-modal mobility platform (2) mobility hub (3) integrated access (4) integrated fare system (5) multi-modal premium services Most of the categories contain multiple solutions difering in coniguration details, e.g. a custom-tailored versus a self-learning mobility platform. The multi-modal mobility platform provides information and travel planning features (1). The mobility hub physically integrates diferent means of transport and further mobility services in one spot (2). An integrated access, either via smart card or via smartphone app, makes multi-modal travel easier (3). An integrated fare system provides one multi-modal fare as a solution (4). Multi-modal premium services, such as mobility insurance, ofer additional comfort (5). The interviewed persons were asked to give their individual probability of use (0 % = wouldn’t use the solution, 100 % = would deinitely use the solution) for every presented multi-modal mobility solution. Moreover, they had to diferentiate between two situations of use: day-to-day mobility and traveling (business & private). The top 3 multi-modal mobility solutions for the whole sample are displayed in igure 1. Within these 3 top-rated services, diverse preferences depending on the situation of use can be pointed out. Getting access to various transport services via smart card is rated the most important solution on a daily basis. Even in the long-distance journey scenario, integrated access via smart card is the second most preferred answer. One can say that usability and simplicity are key to multi-modal mobility. When it comes to fare models, the suggested “best price” model works out the cheapest fare for all journeys in one month. If a customer used public transit worth a monthly pass, 30 minutes of bike and 4.5 hours of car-sharing services, for example, the invoice will list a monthly public transport ticket, a per-minute-fee for bike sharing and a 240-minute car sharing package at a ixed price plus a per-minute-fee for the remaining 30 minutes. Both day-to-day and long-distance travelers seem to value the lexibility of the “best price” fare model, as they rely on its transparency and the beneit of potential savings. The custom-tailored mobility-platform - in the form of a smartphone app or a website - ofers an individually customizable user interface. It is most popular with planning business or private long-distance trips. In contrast, a self-learning platform that adapts its interface, oferings and provided information through analyzing the customer’s mobility behavior is - no matter what situation of use - at the ranking’s bottom. Data privacy issues could probably be one of the factors that would explain the results. Assuming that day-to-day mobility is mostly characterized by routines such as commuting, multi-modal travel information and planning platforms are not equally in demand here. Figure 2 illustrates the respondents’ preferences regarding add-on services for multimodal mobility platforms. Real-time data and single-sign-on (one registration process per customer) are obviously the most preferred add-on services for multi-modal mobility platforms in any situation of use. A live cost overview seems useful on a daily basis, whereas long-distance travelers are looking for integrated booking options. The results reveal that two out of the four highest ranked add-on services rely on dynamically synchronized data transfer, Figure 1: Top 3 multi-modal mobility solutions Figure 2: Add-on services for multi-modal mobility platform International Transportation (68) 1 | 2016 46 SCIENCE & RESEARCH Mobility Market hence the customer stays informed in every traveling situation. Social traveling, a travel community and chat service only just introduced in Germany by Axel Springer SE (Lokin App), ranks lowest. The influence of customer needs Within the scope of this study we wanted to understand if particular needs do have an inluence on the customers’ willingness to use or dismiss a multi-modal mobility solution. Since the transferability to other empirical studies was a requirement, the following generic needs that are not embedded in a special mobility context were examined: (1) Appreciation describes the desire to be acknowledged for either cognitive abilities or rather materialistic status symbols. (2) Comfort relects the demand for convenience and classy surroundings. (3) Data Privacy is the need for personal data protection and conidentiality. (4) Flexibility & Simplicity describes both the demand for options that enable spontaneity and the need for an easy handling of services and products. (5) Individuality expresses the request for customizable products and services, whether actively individualized by the users themselves, or custom-tailored by the provider. (6) Safety & Support describes the need for safety in dealing with diferent situation as well as the openness towards external support. The need levels were measured through at least three question items on a 6-point Likert scale. Within various regression analyses, the relationships between particular needs and the willingness to use multimodal mobility solutions could be investigated. On average, 8.3 % of the variance regarding the likelihood to use multi-modal mobility solutions could be explained by socio-demographics (age, sex, occupation). On top of that, customer needs were able to explain another 20.2 % of variance. It was statistically proven that diferences in customer needs have a relevant inluence on the willingness to use multi-modal mobility services. The Need for Economy, Scrutiny and Eiciency (time) were also measured as factors, but excluded throughout the multivariate analysis. Those needs could not be proven to be signiicant in terms of a statistical connection to the likelihood of multi-modal service use. The interdependency investigation of customer needs and the willingness to use multi-modal mobility solutions draws a clear picture. A varying degree of the needs Individuality, Appreciation and Comfort has the greatest inluence on whether a person will use or dismiss multi-modal mobility services - the higher one of these needs is rated, the higher the likelihood to use a multi-modal service. The demand for Safety & Support and Flexibility & Simplicity also raises the willingness to use multi-modal mobility solutions, but plays a minor part. In contrast, the higher the need for Data Privacy, the higher the likelihood to refuse multi-modal services. In summary, it can be stated that customer needs have a signiicant inluence on the willingness to use multi-modal mobility solutions. Moreover, correlation analysis revealed that rather demanding customers are more likely to use these oferings. Accordingly, customer needs, especially Individuality, Appreciation and Comfort, should be taken into account within every service design process. In this manner, potential multi-modal customers with a higher likelihood to use new mobility solutions may be reached. A reliable data privacy concept should be implemented to break down further barriers. Since the lack of signiicance of both the Need for Economy and the Need for Eiciency (time) was rather unexpected, these scales should be re-examined in the ield as soon as a multi-modal mobility solution is in use. Customer segments in a new mobility market Besides a constant rollout of new mobility oferings, such as carand bike-sharing schemes, as well as the creation of other sharing services, new business areas with a high potential for diferentiation evolve and bring a rise of new inter-sectoral cooperation opportunities. The subsequent convergence of markets and business models forms a new mobility market instead of segmented sectors for individual and public means of transport. It is about time that new market segmentation approaches focusing on multi-modal customers be developed. Using the method of cluster analysis, ive customer segments, distinguished by their individual need patterns, could be derived (see igure 3). The Individualists are mostly attracted by products and services that are actively customizable. Security-conscious data handling is still a key concern. They are not worried about other safety issues. An unfamiliar environment, for example, does not scare them. Furthermore, Individualists are seeking for appreciation for their cognitive abilities. With regard to their mobility behavior, Individualists are mostly multi-modal with advance towards public transit and cycling. The Satisied are not the demanding type of persons. As long as a service allows some adaptability and lexibility, they are pleased. On the other hand, they strictly refuse every form of self-display, whether it be appreciation for cognitive abilities or materialistic status symbols. The Satisied are highly attached to their personal car, a great percentage can be assigned to the traditional mono-modal motorist. Unlike the aforementioned customer segment, The Demanding are rather hard to please. They are seeking safety and support; Figure 3: Five customer segments for the connected mobility market (n = 901) International Transportation (68) 1 | 2016 47 Mobility Market Science & ReSeaRch assistance, for example, is well received especially in an unfamiliar environment. They set great value upon data privacy and also call for all forms of appreciation. Furthermore, The Demanding enjoy some degree of simplicity, easy handling and comfort. Multimodality characterizes this segment’s travel behavior. They are openminded towards new mobility services, such as car and bike sharing or app-based oferings. The Comfort Seekers put great store on style and convenience. In return, data privacy and lexibility are irrelevant to them as long as a high level of comfort is guaranteed. Comfort Seekers depend on the car, but would be open to using other modes depending on the situation. The Spontaneous demand overall lexibility and pure simplicity at the same time. Spontaneous actions have to be possible in every situation and shall be accompanied by easy handling of products and services. The Spontaneous want to be acknowledged for their cognitive abilities rather than for materialistic status symbols. They put no value on a high level of individuality, safety issues or extra comfort. When it comes to their mobility patterns, they mostly rely on the car. Using the analysis of variance, two main cluster subsets that vary in their preferences could be identiied. Whereas The Individualists, The Demanding and The Comfort Seekers are more likely to use multi-modal mobility solutions in general, The Satisied as well as The Spontaneous are more skeptical towards these services. As mentioned earlier, an above-average need for individuality, appreciation or comfort strongly increases the willingness to use multi-modal mobility solutions. Since The Individualists, The Demanding and The Comfort Seekers are quite open-minded as regards diferent means of transport and new sharing services, and their need patterns are characterized by at least one of the values mentioned above, their openness towards multi-modal mobility solutions is not far to seek. Once more, it becomes obvious that demanding customers are more willing to use multi-modal solutions. On the other hand, it has to be assumed that multi-modal mobility services do not meet the need for lexibility and simplicity, since these values are of particular importance to The Spontaneous as well as The Satisied. Accordingly, providers should simplify the use of multi-modal mobility and realign their communication strategies to break down further acceptance barriers. conclusion The study’s results bring substantial insights into the needs and preferences of the multimodal customer. When designing new multi-modal mobility solutions, practitioners should focus on the satisfaction of customer needs, particularly on attributes that meet the need for Individuality, Appreciation and Comfort. The usability of these services has to be increased too, since the respondents did not link multi-modal solutions to a high level of Flexibility & Simplicity. Providers who want to implement multi-modal mobility elements in their ofering should initially focus on integrated information and access as well as a multi-modal fare system. The most important add-on services, such as multi-modal real-time information and single-sign-on, should also have priority in the development process. In conclusion, the presented market segmentation along with the other results of this study is of great importance for both designing multi-modal mobility solutions and implementing a successful marketing strategy. ■ Sophia von Berg, Dipl-.Volksw., PhD-candidate Cooperative program for doctoral studies on e-mobility, Clausthal University of Technology and Ostfalia University of Applied Sciences, Salzgitter s.von-berg@multi-mobility.com andreas Graf, Dipl.-Soz. Researcher, Innovation Centre for Mobility and Societal Change (Innoz) GmbH, Berlin andreas.graf@innoz.de PARTNER CONFERENCEPARTNER CONNECTED CAR & MOBILITY SOLUTIONS Dusseldorf, June 29-30, 2016 International trade fair for connected car and automated driving - be part of the mobile revolution: • Meet exhibitors of sectors like driver assistance, infotainment, telematics, IT-security and automated driving • 5 parallel international conferences with over 100 speeches • Experience cutting-edge technology solutions when automotive manufacturers present the latest features in interactive car presentations • Participate in up-to-date expert lectures at the exhibition`s forum • Profit from the network of experts and expand your knowledge www.concarexpo.com ORGANIZER CONNECTED VEHICLE TRADE ASSOCIATION CVTA CVTA Get your ticket now!