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Public transport can have a major influence on a city's positive or negative image. Every day, millions of people use the public-transport network of Barcelona and the surrounding metropolitan area. The ESADE Alumni Marketing Club recently explored the ins and outs of attracting new passengers by hosting a lecture by Constantí Serrallonga, CEO of Transports Metropolitans de Barcelona (TMB), the city's transit system.

Mr. Serrallonga began his remarks by briefly describing TMB and the goals that make up its philosophy: 'To satisfy the metropolitan area's needs in terms of mobility, economic viability and public service, and to improve quality of life'. He pointed out that 'today, public transport is an essential part of any modern, sustainable city'.

Mr. Serrallonga then described the market in which TMB operates: 'It's a failed market. Without government intervention, it would not exist, because it is not profitable'. He added: 'Everyone benefits from this public-transport system, both those who use it and those who don't. If it did not exist, it would be impossible to use a private vehicle'. As a positive factor, he noted that TMB is an 'environmentally friendly system', in that it is responsible for just 1% of pollutant emissions in the area.

According to Mr. Serrallonga, public-transit rates are regulated by the government. The price of a ticket covers just 44% of the cost of a journey, while subsidies cover 56%.

In the second part of his lecture, Mr. Serrallonga explained that TMB is the main transportation operator in the Barcelona metropolitan area. 'Both supply and demand have grown sharply in this sector' in the past six years, he noted. In this period, the number of metro and bus passengers has increased by 21%, and the number of rush-hour trains and buses has increased by the same percentage. 'Sometimes we become pessimistic when we look at other Spanish cities', said Mr. Serrallonga, 'but if you look at our actions, you see that we are actually doing quite a lot'.

'We believe that our passengers should be treated like clients', said Mr. Serrallonga. 'The city demands it of us. People have become much more demanding. They know they have a choice. This has changed the way we manage TMB'. He highlighted the importance of knowing what citizens want, although he acknowledged that the organisation was as yet incapable of talking to its clients one-on-one. 'Any potential client has needs and expectations, which means that it is possible to attract him and keep him loyal', he concluded.

According to Mr. Serrallonga, these perceptions have led to a new business culture at TMB: 'The organisation is now more client-oriented than product-oriented, and there is more coordination and cooperation between operational and functional areas'. He then predicted that the omnipresence of technology would 'bring about new things in terms of information about service'.

Despite these changes, Mr. Serrallonga said there was still a long way to go: 'We need to get to know our clients better. We need to work to make sure that the number of faithful passengers increases'. The goal, he said, is to convince people to use TMB because it is the best option, and 'not because they have no other choice'.

According to Mr. Serrallonga, TMB uses a marketing mix: the product and the price are conditioning factors, but the company has much more freedom in distribution and promotion. He described the goals of this marketing campaign as 'very ambitious'. The Barcelona City Council has developed a mobility plan that calls for a 46% increase in the overall use of public transport and a 37% increase in total mobility, and TMB has set the goal of meeting these objectives by 2018. In order to do this, 'TMB needs to attract more clients', said Mr. Serrallonga. 'We aren't campaigning against private cars. Rather, we want to achieve our goals by making public transport the most attractive option, with the best geographical coverage, frequency and quality of service'.

Mr. Serrallonga concluded by saying that good planning and execution, as well as political support, are essential to achieving these goals: 'We need to obtain enough funds to meet our goal of developing a high-quality public-transport system'.

In the past few years, TMB's marketing campaigns have demonstrated its client-focused approach. The company has developed plans and carried out activities aimed at improving basic service quality: modernising and expanding its fleet, increasing frequency, substantially improving access and safety, etc. It has also taken steps to provide more complete and relevant information, and introduced a range of additional services to satisfy the demands of today's clients.

TMB is rapidly modernising its network using technologies that allow improved communication and contact with its clients. The company's top priorities include introducing new technologies, improving service, and recruiting and training personnel. By investing in its human resources, TMB will improve its service level and increase awareness of its clients' needs, thereby offering excellent personalised service.

Programme

The Marketing Club has organised this lecture entitled "The challenge of finding the right recruitment and loyalty strategies for clients in the public transport sector: The TMB case"

Welcome
Evarist Juncosa
President of the ESADE Alumni Marketing Club

Lecture
Constantí Serrallonga Tintoré
CEO of Metropolitan Transports of Barcelona (TMB)

Reflections on Metropolitan Transports of Barcelona:
Lluís Martínez-Ribes, Associate Professor in the Department of Marketing Management at ESADE

Date, time and venue:
Wednesday, 27 June 2007
7.30 pm
ESADE - ESADEFORUM
Av. Pedralbes, 60-62
Barcelona

Información:
ESADE Alumni
Tel.: 902 420 020

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