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Barclays Cycle Hire

Understanding payment and release experience

DebriefMarch 2014

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1Background

and Objectives

2Headlines

3Cycle Hire Experience

4Pre Journey

5Payment and

Release

6Return and

Receipt

7Recommendati

on

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Introduction

Barclays Cycle Hire launched in July 2010, and since then has become an iconic part of London. In that time, over 28 million cycle hires have been taken and there are now over 190,000 members

The scheme is now entering an exciting period of transition as the Barclays sponsorship comes to an end in 2015 and Serco, the scheme operator, contract ends in 2017

TfL are now keen to explore the future of Cycle Hire, with a particular focus on how customers feel ‘in the moment’ of paying and releasing the bikes and what payment / release experiences could meet their future needs

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Objectives

Business objective

Research objectives

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?

To understand the different types of payment mechanisms used by BCH customers in their lives eg contactless, mobile, apps, pay as you go, online

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

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Methodology

Three x 2hr observation / Intercepts at BCH docking

stations

(Waterloo, Liverpool St and Hyde Park. Two sessions during the morning peak and one session

during the afternoon. All conducted on weekdays

Waterloo: Mon 07:30-09:30 3/3/14

Liverpool St: Fri 07:30-09:30 7/3/14

Hyde Park: 14:30 – 16:30 4/3/13

Pre task: payment experiences in context

Photograph and upload their experiences and

concerns of using different payment mechanisms via

Memento app

Six x 1.5hr Focus Groups

Understand their experiences of BCH

Payment and Release and explore future needs and potential solutions

Tues 11/3/14

Thurs 13/3/14Mon 17/3/13

1 2 3

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Focus group sample

Group BCH usage Location

1 Regular key users Inner London

2 Occasional key users Outer London

3 Regular card users Inner London

4 Occasional card users Outer London

5 Early payment adopters Inner London

6 Non/ lapsed users Outer London

Total number of participants: 40

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More detailed sample criteria

Customer Segments: Key users: have registered keys (not annual members)

Regular: Use BCH at least once a fortnight . Occasional: Use BCH at least once to every 6 months Card users: Use debit / credit cards at docking stations

Regular: Use BCH at least once a fortnight. Occasional: Use BCH at least once to every 6 months Early payment adopters: Regular/Occasional BCH users and early adopters of new payment

technologies (apps, contactless, mobile, digital wallets) Non/Lapsed users: Key barrier to using BCH is payment

Other recruitment criteria A mix of gender (split by group) though weighted in favour of men to reflect BCH usage A spread of ages (from 18-45) All non rejecters of new payment technologies All smart phones users, open to/using mobile apps A mix of payment technology usage (contactless, apps, online, mobile) A mix of travelling within central zone and /within the BCH expansion zones (West & East)

Key Headlines

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Key Headlines 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 –a real pain point and barrier for all card (regular and occasional) users. Customers want a one step payment and release process similar to the payment journey of key users

2. Integrating the payment and release mechanism with other TfL methods of payment e.g. Oyster (and Contactless as a backup) because they’re:

– Effortless – intuitive and fast (known brand and user experience)

– Secure – small payments, no pin entry and a separation of travel budget from bank account

– Integrated with Tfl - fits with existing travel payment behaviour and eliminates confusion on the current payment structure

3. Adopting new technologies to maximise positive Cycle Hire usage experience – customers are keen to take control of their Cycle Hire usage. There’s a lot of interest in managing the Cycle Hire experience through an app/online account.

– Customers express interest in control of every aspect of Cycle Hire, including: identifying docking stations/bike availability, journey planning, pre-payment, tracking usage/expenditure/mileage, gamification of eco benefit/fitness etc

By addressing all three areas, it would significantly reduce customers payment and release pain points and signify that Cycle Hire is a viable alternative mode of travel and a more obvious member of the TfL family

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Summary: What the ideal customer journey looks like

Pre Journey Payment and Release

Return Receipt

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

Cycle Hire Experience

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Two different experiences of Cycle Hire exist

Key Holders

Journeys are more regular with a mix of

leisure and commuter rides. They love the

sense of freedom and fun and good value that

Cycle Hire offers

Card users

Journeys are irregular, more spontaneous and primarily leisure rides.

Enjoy the novelty of finding a different way to get around London

The payment and release process will need to support both types of customer experience

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Two starkly different Payment and Release journeys

Registration

Receive key

Arrive at docking station

Insert key, release and ride

Find a docking station

Check if bikes available

Click through multiple screens

Get a code on paper

Punch code in

Key holders Card users

Pay for it (chip and pin)

Release bike

Wait/queue for terminal

After a one-off registration, Payment and Release feels quick and effortless

Check if bikes available

One off event

Per trip

Per trip

Payment and Release feels quite cumbersome and clunky

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Payment and Release is a pain point Payment and Release is a multiple step

process which feels lengthy and inefficient• Customer needs to interact with both

touch screen on terminal and bike dock• Every time they hire a Cycle

Impacts overall customer satisfaction of journey

• Requires significant effort and time to hire a bike

• Doesn’t feel seamless, especially compared to other transport modes

Payment and Release is not a paint point Key is always on them

• Often attached to their set of keys Payment and Release is a one step process

• Bike dock is sole touchpoint– No need to access terminal

• Insert key, release bike and you’re away Impacts overall customer satisfaction of

journey and frequency of trips• Hiring a bike is quick, easy and effortless• Seamless transport mode

Payment and Release impacts overall satisfaction and frequency

Key holders

Ultimately, users want to replicate the customer journey of the Key Holder. It’s quick, has minimal steps and feels effortless.

Card users

“The payment is the worst part of the scheme by far – it’s so clunky and old-fashioned.” (card user)

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For many, Cycle Hire is not viewed as an integrated member of the TfL family

Cycle Hire is currently perceived as an outlying mode of London transport

• Sits outside the core TfL transport modes• It’s viewed as a distant cousin rather than a core family member

• Customers are not sure who is responsible for Cycle Hire• Is it Barclays, Boris or TfL?

• The current payment and release system do not aid this lack of perceived integration

• Cycle Hire feels like it has a different payment system from other transport modes

– Eg Oyster, Contactless accepted on bus and The Tube• Able to use weekly/monthly/annual seasons tickets on other

modes

“Since it’s not on Oyster it doesn’t really feel connected to the rest of

the system”

“I work for Barclays and we used to get people coming into our

branches all the time trying to make inquiries about the bikes”

By updating the Payment and Release system, there is an opportunity to make cycle hire feel more integrated and increase the frequency of consideration

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New payment technology is a growing expectation…

More and more, new payment technology is being used in everyday London life

Contactless (in particular) is greatly appreciated• Simple, one-step payment process• Minimal fuss, minimal hassle

There is an appetite for new payment technologies to expand into ever more avenues of London life

Cycle Hire is perceived as an iconic, modern-day, progressive scheme and a great fit for new payment technologies

Contactless

“I bought some food in marks and spencer, I

used contactless as I was only buying a few items.”

“Bus journey paid contactlessly from my

Barclaycard”

App Payment

“I use the Asda app to do my grocery

shopping”

“Paid for a women's top from eBay with PayPal.”

E-Wallet

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Security is a necessary hygiene factor

Despite the appetite for new, expedient payment technologies, customers are still very much preoccupied with security

• It’s an ongoing concern• Media abound with stories of stolen funds and identities

Across payment types, there are a number of factors that help customers feel more secure

• Capped amounts– Eg can on spend up to £20 on contactless payment

• Separation of payment– Payment systems which are linked but separate to your

bank account– Eg Oyster, PayPal

The new payment and release system for Cycle Hire will need to look and feel secure to assure customers

“Paying with my Starbucks app is so quick and so easy. The only

problem I have to use my card to reload the money through the app

and I worry about its security”

“I think contactless is a great way of paying because of how quick and

easy it is, but I do worry in case I drop my wallet or my card”

“I love the speed of contactless, but it makes me

nervous - I read that contactless payment can be

hacked with very simple components”

Pre Journey

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Customers want Cycle Hire to be integrated into journey planning and better info about bike availability

Lack of information – many unsure where to find and how to find docking stations. Also unclear as to how many bikes are available/operational (both in the moment and online)

Lack of integration: TfL journey planning tool/other journey planning tools do not offer Cycle Hire clearly as a travel mode

WHAT CUSTOMERS WANT

Cycle Hire incorporated into journey planning tools:

• Suggested as a viable alternative mode by TfL when planning journeys

• Details of closest docking station location

Real-time information: Availability of bikes to be clearly signalled at docking stations through more audio/visual cues

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Customers already embracing pre-journey information

Opportunity for TfL to develop or endorse and recommend a go-to, TfL branded cycle hire app

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Registration currently not meeting customer needs for Cycle Hire

Confusing – All Card User’s understanding of registration is confused

• Misconception that registration is tied to an annual subscription

• Which they don’t want to pay for

Unclear benefits – For Key Users, the benefits of registration are not understood or appreciated

• Regular/registered users highly value the minimised payment & release process, but do not see benefits of registering beyond this

WHAT CUSTOMERS WANTA choice of a two tier registration system: Basic registration (anonymous)

Simple chip and pin registration of Oyster/Contactless Card at terminal• Allows for spontaneous use of Cycle Hire• Fits with needs of more Occasional user

Full registration (Customer information)Online registration of Oyster/Contactless card accessed via an app/online• For the more regular customer• Creates a customer account with

additional benefits– eg ability to track usage and

expenditure• Part of TfL account

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Opportunity to maximise completion of online registration

To encourage as many people to sign up for registration we need to remove any confusion• Ie registration is not the same as a subscription. There is no annual or monthly fee

And we also need to clearly communicate the benefits in signing up:• Faster payment and release• Personalised account with all the tools and info you need pre, during and post journey

Communicate to customers that by registering they will speed up Payment and Release process when hiring a bike

Provide a personalised account with clear benefits ‘pre, during and post journey’

Pre-journey• Preload payment of Cycle Hire• Journey planner with Cycle Hire• Closest and docking station location • Real-time information: availability of bikes• Info on preferred docking station/s

During-journey• Journey timer

Post-journey• Record of journey (date, time and final payment)

– Ability to print online receipt• Engaging and motivating info… gamification of eco benefit/fitness (eg

miles per trip, total miles cycled, calories burnt, furthest travelled by bike etc)

• Reporting of fault function• Comparison of expenditure across modes

1. Faster payment and relese

2. Provide a personalised account

Payment and Release

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Customers find the payment structure confusing

The current payment structure does not feel intuitive to customers Confusing

• Feels like you pay twice:• Once for an access period• Once for a per use charge

• Unclear what 24hr/7day access entitles• And how that access period fits with

30mins ‘free’• Card Users also frequently assume that

acquiring a Key requires monthly or annual subscription

Lack of consistency with TfL• Cycle Hire payment structure not felt to be

aligned with other structures in TfL travel• Pay once only…per trip, one-day

travelcard, weekly pass, monthly pass, annual pass

• Time limit is not on any other mode

WHAT CUSTOMERS WANT

Simplification and Consistency with other TfL payment structures

“I had no idea you didn’t have to get a monthly subscription to the scheme to get a key…I’m going to

register as soon as I get home”

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The current payment system for Card Users is a significant pain point

For all card users, the payment system feels at odds with the bike journey experience

Slow – felt to require too many steps to pay. Does not utilise up-to-date technology to maximise speed of payment

Frustrating – perceived as an out-dated system and not like payment systems utilized on other London transport

Unsafe – concerns about getting credit/debit cards out on streets, particularly at night

WHAT CUSTOMERS WANT Effortless

• Fast… Payment and Release collapsed into a one-step process.

• Intuitive… process is simple and does not require explaining.

• Easy… can pay and release with something I always carry on me

Secure

• Small payments, no pin entry

• Separate from bank account (able to budget for travel)

Integrated

• A payment system that fits into their London travel payment world

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Ultimately, customers want the benefits of Oyster transferred over to Cycle Hire

“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”

“I can’t understand why they haven't already allowed us to use our Oyster cards? If they

did I would use it so much more”

Consistently, across both Key and Card Users, customers desire Cycle Hire to be integrated with Oyster:

Meets core needs of being effortless (fast, simple and easy) and secure

A familiar brand with a familiar ‘touch in touch out’ user experience

• Oyster (both card and yellow card reader) is instantly recognised and understood

• It’s strongly associated with TfL• And the benefits of Oyster are universally known

Connects ‘my’ London travel• Incorporates Cycle Hire into my wider travel

behaviours• Payment is contained within a single TfL account

“Oyster is travel in London. It’s the tube , bus and

tram. If cycle hire were to use Oyster card it would say

Cycle Hire is a part of TfL”

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Contactless felt to be a good back up/alternative to Oyster

“Over the last few months I’ve become really confident using contactless. It’s great and if I

run out on money on my Oyster, I’ll use it on the bus”

Contactless is perceived as necessary as a back up when Oyster is devoid of fundsHowever, doesn’t share the same benefits of Oyster

Eg (connection to wider system/usage history/separation of funds etc)

Meets core needs of being effortless and secure. • Fast, one-step process• Already in wallet, simple touch-in, touch-out

process• Secure as has a £20 cap

A more familiar method of payment• Retailers and other and TfL modes already

offer contactless, helping customers feel more comfortable using this technology

Consistent offering of TfL• An expectation that more and more elements

of TfL will offer contactless

“It’s available everywhere and the way everything is going.

It’s even available on the bus”

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Release working really well for Key Holders but less so for Card Users printed codes feel outdated and time consuming

Key Users happy with the current release system

Fits with their needs of Cycle Hire

Effortless, easy to use and fast

• One-step Payment and Release process

At a basic level printed codes do the job, but are perceived negatively

Process is time consuming and outdated

• Printing on paper feels out-fashioned and wasteful

• Uncertainty as to whether code is punched-in

– No physical or audio feedback to confirm codes are punched in and code is correct

Key Holders Card Users

“I tried to use the Barclays bikes twice but both times I had problems with using the stupid codes – I gave up after that.”

Card Users want to mirror the Release experience of Key Holders

“I feel really smug when I’m at a docking station and I see people

struggling with their printed codes”

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The ideal payment and release solution is a one-step ‘touch in, touch out’ payment that feels integrated with TfL

WHAT CUSTOMERS WANT

Payment and Release collapsed into one-step

Effortless – release and go. A process that feels aligned with the freedom of the bike journey

Fast – Tap/touch-in and release. Doesn’t involve multiple steps

Intuitive and simple to use - no uncertainty as to whether bike will release or not

Integrated – with other TfL payment modes

Return and Receipt

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Customers seek clear confirmation that bikes have been returned successfully

WHAT CUSTOMERS WANT

Audible/Visual confirmation that bike has been successfully returned and docking process is completed

• ‘touch out’ function would signify end of their transaction

• Intuitive as replicates familiar usage behaviour of Oyster/Contactless

Docking Cycle Hire bikes often a concern. Especially for occasional users

Uncertain of whether they have returned and locked their bike successfully

Concerned about being overcharged• Have heard negative experiences of

incorrectly docking bikes and being charged for extended usage

“I’m always worried about the bike not being docked correctly

and having to pay £100 or more”

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Current paper receipt process seen as wasteful and old fashioned

Receipt feels somewhat old fashioned and introduces another unnecessary step in the process

The length of the receipt also feels wasteful and unnecessary

WHAT CUSTOMERS WANT

Regular users are keen for receipts to be recorded on their centralised online account via an app

Less frequent users want the receipt of payment to be given post- journey via a simple SMS or email

• Provides sufficient reassurance that they haven’t been overcharged

Recommendations

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Develop or recommend and endorse a definitive Cycle Hire app (also accessible via web) with location/availability and real-time information

Recommendations moving forwards

Pre Journey

Create a two-tier registration• Occasional users – chip and pin at terminal, anonymous• Regular users – online registration process which culminates

with a personalised account

Registration

Integration with Oyster (and Contactless as an alternative)• Touch in to pay and release bike• A payment structure in line with other TfL offerings

Pay and Release

Audible/Visual confirmation that bike has been returned (Touch out with Oyster)

• Regular users – receipt linked to account• Occasional users – SMS (or email) receipt

Return and Receipt

Appendix

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Biometrics is seen as futuristic yet limited

Bio metrics seen as futuristic and secure• Feels like brand new technology• And highly secure

– Your fingerprint is completely unique! 

But there are some limitations (actual and perceived) and concerns Performance is reportedly intermittent

• Some who already experienced using (eg iPhone 5S and laptop biometric) talk about needing to ensure entire fingerprint is scanned and it only working 1 in 4 times.

Concern around giving highly sensitive data to TfL• Perception that this is an unnecessary exchange of personal details a

casual mode of transport – Heightened by their confusion over who runs the scheme… ‘would

Barclays have my fingerprint?’ Perceived potential for vandalism for such a sensitive piece of kit And most importantly, biometrics not felt to offer the benefits of integration

that Oyster and Contactless does• Eg payment and release collapsed into a single step • All my travel payment in one place

“I had this at work and the scanner

only worked every 1 in 4 times – you

have to do it at the right speed and get

the whole finger scanned or it doesn’t work”