Barb Sheehan
Marketing Manager

Rideshare Industry Marketing:  Audience Segmentation, Multichannel & Measurement 

 Living in the city or getting to your hotel from the airport used to involve some sort of shared transportation such as a bus or taxi. Fast forward a little over a decade and the market is barely recognizable as Uber, Lyft and other budding rideshare businesses have exploded on the scene. Rideshare is already a $100B industry and according to Statista, the market should reach $218 billion by 2025, up from the $36.4 billion it was in 2017. In recent years, “traditional” ridesharing has expanded to include delivery across various categories including restaurant food, groceries, alcohol and even packages. Uber has also partnered with Waymo to offer some of its services using Waymo’s self-driving cars, opening up a whole new avenue for the industry’s future.

In the fast-paced (and evolving) world of rideshare companies, success hinges on the ability to effectively reach and engage a diverse audience of both consumers and potential drivers. With competition growing every day, it’s crucial to utilize advanced marketing strategies backed by compelling data. In this blog, we’ll explore how rideshare companies can harness the power of data-driven audience segmentation, multichannel marketing and campaign measurement and attribution, to not only grow their existing user base but also attract new customers and potential drivers.

 Audience Segmentation

Audience segmentation is the process of dividing your target audience into smaller, more manageable groups based on shared (and/or preferred) characteristics, behaviors, and/or preferences. For rideshare companies, as with most industries, data-driven segmentation is the key to success. Here’s how you can use this strategy to your advantage:

Demographics: According to recent surveys, age plays a significant role in rideshare preferences. For example, statistics show that Millennials and Gen Z are more likely to use rideshare services compared to older generations. Use this data to create targeted marketing campaigns for specific age groups, maximizing your reach where it matters most.

PRO-TIP: Mature audiences may need more education to become efficient users. Tips on downloading and use of the app, along with emphasis on the ease of use and cost efficiencies may expand these key categories.

Behavioral: Analyzing user behavior provides valuable insights. For instance, many rideshare patrons are using the app for commuting. Especially in larger cities, some consumers have found the use of such services to be more cost effective than owning and/or parking their own vehicles. This is even more true with growth of hybrid work environments where commuting is no longer a daily activity. Analyzing the data to discover these preferences, you can tailor promotions to appeal to this demographic and encourage regular ridership.

PRO-TIP: Claritas PRIZM Premier audience segment, Connect Bohemians, is over 4X more likely to have used a rideshare app in the last 7 days. A collection of mobile urbanites, Connected Bohemians are a progressive mix of tech savvy, young singles, couples, and families ranging from students to professionals. They are early adopters who are quick to check out the latest on Instagram or Crunchyroll, providing a great starting point in reaching this target group.

Psychographic: Data on user motivations is both enlightening and increasingly vital. For instance, research indicates that a substantial percentage of consumers use rideshare services for environmental reasons, seeking eco-friendly transportation options. Highlighting the sustainability aspects within your marketing messages can resonate with these environmentally conscious riders. And this is only one such existing criteria!

Geographic: While rideshare in less urban areas has grown, the population density of cities makes it a primary area for both consumers and potential drivers.  However, there are other factors related to geography that can determine success. Licensing and permitting can vary widely, as can insurance requirements.  The cost of rideshare services relative to local income levels can also impact its popularity.  Cultural and gender sensitivities, weather, perceived safety and transportation infrastructure can also affect the growth.

PRO-TIP: Understanding and adapting to these local nuances is crucial. Tailoring both services and marketing strategies to align with the specific characteristics of each market may be necessary for success.

Multichannel Marketing with Data-Backed Insights

Once you’ve segmented your audience effectively, it’s time to target them through the appropriate mix of marketing channels, supported by data-driven insights. Claritas’ audience segments are easily accessible across over 150 platforms and media partners. If for any reason they’re not on-the-shelf ready to use, we can onboard them for seamless campaign execution.

Mobile Apps: A vast majority of all rideshare bookings occur through mobile apps. Utilizing user data to send personalized push notifications and promotions can help increase user engagement and conversion rates. Plus, data-backed in-app messaging can significantly enhance the user experience. Statistics show that users who receive timely updates and assistance are 40% more likely to remain loyal to a service. Use consumer data to provide real-time, relevant information and support.

PRO-TIP: Discover the primary reasons specific segments use rideshare apps to determine messaging.  Environmental? Convenience of restaurant or grocery delivery? Frequent travelers? Using an effective audience segmentation tool is key. Claritas offers over 2,500 Syndicated Audiences built from over 20,000 demographic and behavioral attributes , so you know more about each audience and can more precisely determine the ones with the most potential for your business.

Social Media:  As with many markets, social media platforms seem to be quite influential to rideshare users for various purposes, including seeking ride recommendations. Capitalize by discovering which social media platforms are most used by key audience segments. Running targeted ads and promotions (that include positive reviews) through these sites will help you reach your audience where they’re most active.

Email Marketing: Data-backed email campaigns are proven effective. Recent statistics show that personalized email campaigns with tailored offers can improve user engagement and conversions, as well as increase customer loyalty and repeat business.  It’s also your best opportunity to engage in true, meaningful, 1-1 messaging with key targets.

PRO-TIP: Turning email outreach into an effective conversation starts with an accurate email database. Claritas has one of the industry’s largest databases of high quality, compliant, and validated email addresses that’s continuously refreshed to make sure it stays as up-to-date and accurate as possible. Claritas’ email services, operations and execution are recognized industry wide for their effectiveness.

Content Marketing: Data-driven content marketing can provide a significant impact. Recent data indicates that rideshare-related blog posts and videos receive high engagement, especially when they address topics like safety, cost savings, and convenience. Leverage this insight to create compelling content that resonates with your audience, and to further educate less “tech-savvy” potential customers.

Print Media: Don’t underestimate the power of print media in the digital age. Recent surveys reveal that print media is still a trusted source of information for many users, especially in regions with older demographics. Use audience segmentation data to determine the best places to place print ads (such as local newspapers or magazines) to target specific demographics, such as more mature consumers and/or suburban residents.

Partnerships: Collaborations and partnerships are key to this industry as expansion into full Mobility as a Service continues. For instance, Uber acquired bike-share company Jump and announced a partnership with Masabi, a global leader in public ticketing. Analyzing user preferences and trends is key to helping to identify potential partners.

Measurement and Optimization

You have segmented your audience for campaign targeting and developed a multi-channel marketing strategy to accomplish your goals.  You have experienced a significant uptick in leads, sales and ROI. That’s great, but you aren’t done yet. The next step is to create a plan to accurately measure the impact your audiences and campaign tactics have on delivering your KPI’s. Whether those include an increase in leads, visits to your website, sales conversions, or all of these, it’s important that you have a plan for accurate and fully transparent attribution reporting so you can continually optimize campaigns in-flight. Some key questions you’ll want answers to include:

            What channels are working best?

            What messages are driving conversions?

            How are individual audiences affecting ROI?

            Should we expand into additional channels?

    Is my campaign driving conversions and if so, is it providing an incremental lift in a certain KPI?

There are a lot of measurement providers out there but we urge you to consider choosing an independent 3rd party partner to provide precise measurement indicators that can be used to truly analyze the effectiveness of your messaging and chosen media while avoiding any potential bias.

PRO-TIP:  Claritas’ cross-device and cross-environment attribution integrates impressions across digital display, OTT/CTV, streaming audio, podcast, direct mail, mobile and out-of-home. Conversions are captured across most advertiser websites (site visits, form submissions, online purchases, etc.), in-store traffic, offline sales (credit card purchasing and CPG shopper card data), in-app purchases and OTT/CTV viewing data. You’ll have an accurate and transparent analysis showing which channels are most effective at converting so you can track and react in near-real time.

Data-driven audience segmentation and multichannel marketing, backed by follow-up measurement solutions, are powerful tools that can transform your rideshare company’s marketing efforts. By understanding your users’ diverse needs and preferences through data, and reaching them through various channels, you can enhance customer retention, attract new users, and maintain a competitive edge in the ridesharing and other Mobility as a Service industries. Embrace these strategies, adapt them to your unique audience, and watch your business thrive.

Are you ready to know more?