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Transport Card Customization

Transport Card Customization. A Scandinavian Case Study. Anthony Lloyd-Perks Head of Sales, EMEA, Serverside. 17 th March 2011. Serverside Group – background What is Card Customization? Why customize a Transport card? Stockholm Lokal Case Study. Serverside Group - Background.

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Transport Card Customization

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  1. Transport Card Customization A Scandinavian Case Study Anthony Lloyd-Perks Head of Sales, EMEA, Serverside 17th March 2011

  2. Serverside Group – background What is Card Customization? Why customize a Transport card? Stockholm Lokal Case Study

  3. Serverside Group - Background • Global Leaders in online Payment Card Customization • Established 2003, majority owned by Gemalto since 2009 • 720 customized card programs in 26 markets • Leading edge SaaS technology thatenables card issuers to offer web based customized card design capabilities to their cardholders • All clients report major incremental card profitability and many generate an additional revenue stream through charging fees • Key message : Customization drives profitability A Scandinavian Case Study

  4. What is Card Customization? • The ability for a cardholder or card applicant to design and apply for their own card online • Customers choose from a gallery of approved images or simply upload an image from their own photo library • They use a simple design tool to manipulate the image, preview their design and submit it for processing • A hand off to a digital print facility does the rest A Scandinavian Case Study

  5. Stockholm Lokal: Existing Service • Travellers access the transport service via paper ticket and closed loop prepaid access card • Travelers apply for the reloadable card online or at a ticket office • 2.5m cards are in circulation for only 900,000 travelers – many have/had more than one card • Card is free to travelers and hence treated as disposable • Cost of wasted cards and card reissue is unsustainable • Paper tickets are also costly and inefficient A Scandinavian Case Study

  6. Stockholm Lokal: Strategy • Phase out paper tickets and drive up Card uptake and reloading • Promote online application – SEK20 for ticket office and ZERO FEE for online application • With more travelers directed to the website, promote online card customization to • Get cardholders bonded to their card – encouraging them to reload it rather than dispose of it and get a new one • Recover processing costs by charging SEK100 per customized card – only SEK80 more than standard card • Seek to drive a small profit from fees over time • Use fun customization solution to rebrand and remarket card usage and direct travelers to the website A Scandinavian Case Study

  7. Stockholm Lokal: Serverside Solution • Launched January 2011 - 3 month implementation • Implementation and ongoing management handled entirely by Serverside/GTO – cost of €9.50 per card • Service accessed via simple link in SL homepage - travelers go online, select a design, pay SEK100 and apply for a card • Images are checked and Cards fulfilled by GTO • Lost your card? Choose to pay for another or pay nothing for standard plastic • Future development – allow reloading of customized cards online (currently at ticket office only) A Scandinavian Case Study

  8. Stockholm Lokal Design Page • http://designadekort.sl.se/ A Scandinavian Case Study

  9. SL Marketing Campaign • Online competition A Scandinavian Case Study

  10. SL Marketing Campaign • Undergroun17/3/2001 • d Advertising A Scandinavian Case Study

  11. SL Marketing Campaign • Stockholm Billboard Presentation title – Security level Arial (10pt)

  12. €317k Total direct income for Stockholm Lokal over 3 years Key Stats 777 Customised Cards generated in first full month  €8811 Stockholm Lokal total revenue in month 1 €Xm 48% The unquantifiable benefit to SL in efficiency savings and good PR Of all cards ordered online  €11.34 €285k Cost for est.30,000 cards over 3 year contract Charge to traveler per customized card €9.50 Average cost per card based on estimated 30,000 cards over 3 year contract A Scandinavian Case Study

  13. The real benefit to Stockholm Lokal • Attract new cardholders and reduce paper ticket usage • Address the issue of disposable cards – 2.5m cards issued but only 900,000 travelers – by creating a bond between traveler and card through customization and fees • Drive cardholders to apply online rather than at ticket office – custom option only available online • Generate incremental fee revenue • Use the launch to maximize publicity for card usage and create good PR for the company • Costs down / Income up!! A Scandinavian Case Study

  14. What’s in it for Gemalto? • A competitive edge for new business • Enhanced stickiness in the client relationship • Incremental perso and print revenues • Additional income stream – customisation revenue as well as potential project management income • Simple, low risk implementation • A happy, satisfied client • A happy, satisfied MD A Brief Scandinavian Case Study

  15. Thank You! • Questions : Anthony Lloyd-Perks on +44 7769 143787

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