BCH Registration, Payment, Release and Receipt Research March – April 2014

Research Objectives Business question:  What does the future of BCH look like and in particular, how can payment and release mechanisms be optimised to meet customers needs and expectations? Qual Objectives:Segmentation Objectives:Quant Objectives: 2CV:  To understand the different types of payment mechanisms current used by BCH customers in day to day lives  To explore future trends for payment channels  To explore current pain points and issues with BCH payment – both PAYG and those with registered keys  To understand what level of payment integration customers want across travel modes e.g. same accounts / same methods  To explore how BCH customers would like to make payments for BCH and release bikes in the future SPA:  Build on qualitative research quantifying customer needs and wants for registration, payment, release and receipt  Explore desired levels of integration with TfL (such as Oyster)  Measure awareness and understanding of BCH amongst near market users  Examine barriers and motivations to BCH use  Understand channel preferences for customer interactions  Provide data to SDG to allow segmentation SDG:  Analyse results using postcode to allow for research results to be segment specific Completed end March 2014 Completed end April 2014

Key Headlines from Qualitative research There appears to be a significant opportunity to increase both frequency of use and overall satisfaction with Cycle Hire by: 1.Simplifying the payment and release system for casual – there are starkly different customer journeys between key holders and casuals with casuals finding the current payment and release methods slow, frustrating and confusing. Offering a payment method that reflects the experience of a regular key user –simplifier steps and integrated familiar payment methods, would significantly reduce custommer pain points 2.Integrating the payment & release mechanism with other TfL payment types e.g. Oyster / Contactless offering: Convenience – effortless, fast, simple & accessible Security – small payments, no pin entry, ability to separate a budget for travel with Oyster, trust/ band association with Oyster. Integrated – alignment to existing London travel behaviours, eliminates tariff structure confusion, trust and familiarity of the Oyster brand 3.Adopting new technologies to maximise positive Cycle Hire usage experience – new payment technology is a growing expectation and customers are keen to take control of every aspect of their Cycle Hire usage especially through an app/ online account Customers interest covered every aspect of Cycle Hire usage - identifying docking stations/bike availability, journey planning, pre-payment, bike release, tracking usage/expenditure and gamification of eco benefit/fitness etc ....signify that Cycle Hire is a part of an integrated TfL transport network and a viable alternative mode of travel

The ideal customer Cycle Hire customer journey provides convenience, security, control and connection to TfL All customers prioritised ease, speed and integration for a future Cycle Hire payment system: –Convenience – the minimum no. of steps, speed, ease of use, no pre-planning and payment familiarity –Security – this was seen as a hygiene factor albeit a critical one – an expectation for the system to be secure –Control – reassurance of who to turn to if encountering problems –Connection to TfL - an overarching account linked to wider TfL travel for holistic travel and expenditure management “My dream would be to walk straight to the bike, tap my Oyster, undock the bike and ride away” “It has to be secure – it’s essential. I would put that at the top of my priorities - it’s just something I expect as standard” “It would be so good to have an app to manage your account – they could show you all your data, let you find docking stations – all that stuff in one place”

Customers want the benefits of Oyster transferred over to Cycle Hire  The consistent message from customers was a desire for Oyster to be integrated into the Cycle Hire scheme – this was due to a number of factors: –Connecting up travel experiences - incorporating Cycle Hire into wider travel behaviours & payment methods under a single TfL account. Bring cycle hire from being perceived as a distant cousin to part of the TfL family –A ‘Touch in & Touch out’ experience – Oyster was the most familiar method for providing this Contactless was also seen as a viable option for payment/release: –A good backup to Oyster – Contactless was not perceived to share all the benefits of using Oyster (connection to wider system/usage history/separation of funds etc) –Growing use of contactless – Incorporation into retail and TfL modes is helping customer’s level of comfort using this technology - communicates TfL’s dedication to innovation “It would be great if TfL made it so you could get the bikes on your travelcard – I would pay a few extra quid every week for that!” “I would rather use an Oyster card than Contactless – it would be way easier to sort out any problems with TfL than with your bank” “If I could use Oyster it would make it so much quicker – you could just touch in to get the bike, then touch out at the end”

Casuals want to mirror the release experience of key holders. Current release proposition is perceived to be time consuming, outdated, wasteful and uncertain Customers want cycle hire incorporated into journey planning tools, real time information and more audio and visual clues for bike availability. Current proposition as perceived by users represents; –Lack of information –where and how to find docking stations and bike availability (in moment and online) is challenging –Lack of integration – TfL journey planning tool/ other journey planning tools do not offer Cycle hire clearly as a travel mode Customers want a two tier registration system – basic (where user remains anonymous) to allow for spontaneous use and full (where customer information is provided) for the more regular users with additional account benefits. Current registration proposition as perceived by users is; –Confusing – misconceptions that registration is tied to annual £90 subscriptions –Unclear benefits – for key users the benefits of registration are not understood or appreciated. What is the benefit beyond getting a key for bike release Other Headlines from Qualitative research

Customers want clear benefits from full registration. There is an opportunity to maximise completion of online registration through; –Communicating the benefits –Providing a personalised account with clear pre, during and post journey benefits Customers want a simplified payment structure which is consistent with other TfL payment structures. Customers find the payment structure (tariff) confusing –Feels like you pay twice –Lack of consistency with other payment structures in TfL modes Other Headlines from Qualitative research

Next Steps SegmentationQuant  To understand the different types of payment mechanisms current used by BCH customers in day to day lives  To explore future trends for payment channels  To explore current pain points and issues with BCH payment – both PAYG and those with registered keys  To understand what level of payment integration customers want across travel modes e.g. same accounts / same methods  To explore how BCH customers would like to make payments for BCH and release bikes in the future  Build on qualitative research quantifying customer needs and wants for registration, payment, release and receipt  Explore desired levels of integration with TfL (such as Oyster)  Measure awareness and understanding of BCH amongst near market users  Examine barriers and motivations to BCH use  Understand channel preferences for customer interactions  Provide data to SDG to allow segmentation  Analyse results using postcode to allow for research results to be segment specific Completed end March 2014 Completed end April 2014 Qual  Online survey launched Friday 28 th March with field work concluding mid April  Data provided to SDG mid April  Final report provided to TfL end April  Debrief scheduled for early May  Collaborative working with SPA  Data received mid April  Final report due end April/ early May  Completed

APPENDIX

Research Methodologies: Stage 1: 2hr intercept sessions at Hyde Park, Liverpool Street and Waterloo (week-day and peak times for Liverpool Street and Waterloo and during day for Hyde Park) Stage 2: 32 Auto-ethnographic diaries documenting experiencing of using different payment technologies (pre-task to focus groups) Stage 3: 6 x focus groups among a mix of regular, occasional and lapsed users living in inner and outer London. 40 people total  Post code/ segmentation analysis Qual (2CV)Segmentation (SDG)Quant (SPA) Online survey (15mins): BCH member sample (1,000)  Current (last 12 months) users of BCH  Mix of user types (annual, weekly, 24hr)  Random selection as far as possible in terms of demographics and frequency of use  Permission to research Free found sample (4,000)  Online survey with representative sample from panel  2,000 Londoners, 2,000 non-London UK visitors (including commuters)  Londoners screened including 100% live in London, visited a BCH zone in the last three months, physically able to ride a bike, representative demographics  For non-London UK residents screened as 100% to live in the Home Counties or surrounding area, visited the BCH zone in the last six months, physically able to ride a bike, representative demographics

The ideal customer journey... Pre JourneyPayment and Release ReturnReceipt Registration  Cycle Hire app with Journey planning tools and real-time information  Two tier online registration process 1.Simple and anonymous 2.Full with account accessed via app Oyster/Contactless touch in  Effortless (intuitive and fast)  Integrated with TfL  Secure  Confirmation of correct return of bikes visually or audibly Oyster/Contactless touch out  Regular users – receipt recorded on their personalised account via app/online  Occasional users – receipt of payment to be given post- journey via SMS or app