Challenges and Trends in Loyalty for North American Public Transport

Key Challenges and Pain Points

• Post-COVID ridership volatility: Transit systems still struggle to regain pre-pandemic ridership. By late 2023, most large U.S. metros remained well below 2019 levels (only 9 of 39 major metros had recovered to their September 2019 ridership), ccam-tac.org. In the U.S. overall, 2024 ridership ran ~79% of 2019, as many former commuters continue remote or hybrid work smartcitiesdive.com, transit.dot.gov. This continued ridership shortfall makes it hard to keep riders “locked in” and predictable, as agencies face ongoing churn when riders’ work or travel patterns shift.

• Competition from alternative modes: With ride-hailing, e-scooters/bikes and personal vehicles widely available, riders have many convenient options. Surveys and studies show some travelers choose Uber/Lyft or private cars for speed and flexibility, especially when transit service is infrequent. In high-ridership regions, elevated remote-work levels (often among higher-income former transit riders) further erode loyalty, since people no longer need transit daily, ccam-tac.org, s martcitiesdive.com. Agencies must now “compete” for trips against a broad mobility ecosystem, not just against other transit lines.

• Service quality and customer experience gaps: Riders cite cleanliness, safety, comfort and reliability as top concerns. Many transit systems report that customers complain about dirty vehicles, overcrowding, lack of shelter/amenities at stops, and delays. Agencies are responding by launching formal customer‐experience (CX) programs – nearly 70 North American agencies now have CX initiatives to tackle such pain points masstransitmag.com. For example, L.A. Metro identified cleanliness, security and lack of bus-stop shade or seating as key issues in rider surveys masstransitmag.com. Until these everyday service issues are addressed, rider satisfaction (and thus loyalty) remains fragile.

• Fare/payment friction and complexity: Confusing fare structures and incompatible payment systems across jurisdictions frustrate riders. In many regions there are fragmented fare products (e.g. separate city passes, different rules for buses vs. trains, cash vs. card fares) that make multi-line or multi-city trips cumbersome nctcog.org. For example, a Dallas–Fort Worth report notes “fragmentation in fare products…creates friction” for riders using multiple services nctcog.org. High fares also drive riders away: some systems raised fares post-pandemic to plug budget gaps, which risks alienating price-sensitive customers. Riders without bank cards still rely on cash (40% of DART bus riders use cash nctcog.org), indicating that technology gaps and affordability remain hurdles to seamless loyalty.

• High rider churn and lack of loyalty focus: Unlike airlines or retail, public transit has historically lacked formal loyalty programs or marketing to reward frequent riders. Agencies often measure success by ridership totals rather than “customer loyalty.” This means many long-time riders slip away unnoticed – for example, Montreal’s transit agency (STM) had an estimated 13% annual attrition rate among riders before it revamped its marketing ttec.com. A transit research review explicitly points out the need to “retain existing transit riders (reducing ridership ‘churn’), potentially through the use of loyalty rewards programs transweb.sjsu.edu. In short, without proactive retention efforts or rewards, transit systems risk slowly losing even their core riders.

Emerging Trends and Innovations

• Gamified loyalty and rewards programs: Transit agencies are increasingly experimenting with points-based rewards to boost engagement. For example, Seattle’s King County Metro launched “Transit Go Rewards” in 2023 and quickly enrolled over 30,000 riders (who earn points redeemable for free rides or partner services) ccam-tac.org. In Montreal, STM’s “Merci” loyalty app led 25% of participants to ride more often and 43% to use transit for new trip types (e.g. weekend leisure) ttec.com. Notably, nearly half of Merci users even took a friend along on a “two-for-one” offer, generating additional ridership ttec.com. Research from BCG shows top loyalty-program members across industries spend 50% more with the brand ccam-tac.org, underscoring the potential payoff of transit reward schemes.

• Mobile apps and personalized engagement: Digital platforms are enabling highly personalized rider experiences. Agencies are leveraging apps and data analytics to send real-time alerts, tailor offers, and provide instant gratification. STM’s Merci app, for example, lets riders earn “virtual trees” (eco-rewards) and pushes personalized retail and event offers based on location – linking 1,300 partner deals to individual trip patterns ttec.comttec.com. This led to measurable shifts in behavior: many young riders increased use and invited friends (see above). APTA notes that agencies can tap smart-card and app data to award badges or points (e.g. for trying new routes or “commute streaks”) apta.com. By making riders feel seen and rewarded through their phones, transit systems aim to create stickier loyalty like commercial apps do.

• Partnerships and multimodal integration: Transit loyalty programs are increasingly linking with other mobility services to broaden their appeal. King County’s reward points, for instance, can be redeemed not just for bus passes but for private partners like Bird, Lime and Link scooter/bike shares ccam-tac.org. Similar programs allow points to be spent at local merchants or on rideshare vouchers. This reflects a trend toward Mobility-as-a-Service (MaaS) ecosystems, where public transit is one node in a larger network. By offering rewards redeemable across different modes or retail partners, agencies seek to embed transit in riders’ daily lives. It also incentivizes using transit in combination with other transport modes (for example, earning points on a bus that then fund a bike-share ride), which can deepen overall loyalty to the transit brand.

• Enhanced customer‑experience initiatives: Agencies are making major investments in rider experience as a loyalty strategy. According to industry reports, about 70 North American transit systems have now launched formal CX programs masstransitmag.com. These programs use rider feedback to identify pain points (cleanliness, safety, shelter, information accuracy) and then dedicate resources to fix them. For example, L.A. Metro’s $200M+ CX plan deployed 300+ transit ambassadors to improve security and assistance on platforms masstransitmag.com. Such initiatives signal to riders that the system is responsive to their needs, helping rebuild trust. Early indicators suggest that better on‑vehicle amenities (Wi-Fi, real-time info screens) and courtesy efforts can raise satisfaction – a critical step toward earning repeat use and positive word-of-mouth.

• Sustainability and social‑impact branding: Many agencies now emphasize environmental and social value to connect with riders’ values. Transit’s green benefits are being integrated into loyalty messaging. In STM’s program, for example, every round-trip is equated to one tree’s annual carbon benefit, and riders earn symbolic “virtual trees” for eco-friendly behavior ttec.com. The agency explicitly markets transit as the cool, climate-conscious choice for young adults ttec.comttec.com. By tapping into riders’ desire to make a difference (e.g. reducing emissions), transit systems aim to foster an emotional loyalty beyond mere convenience. Early evidence from Montreal shows this resonates: many young users reported feeling good about choosing transit and passed that message on to friends ttec.comttec.com. Integrating sustainability into loyalty programs and branding thus appears to strengthen riders’ personal commitment to public transit.