How Can Taxi Firms Retain Clients in Competitive Markets?

The number of licensed taxi drivers in England hit a record high in 2018, rising to a whopping 285,400 last year from just 184,500 in 2005, according to the Department for Transport. In fact, outside of London, the total number of PHV operators grew by 4.5% in the 12 month period between 2017-2018, suggesting that the competition is more fierce than ever before. So what does greater competition mean for existing UK taxi firms?

Quite simply, more competition means that it may become increasingly more challenging to retain customers. Today, client bases are highly volatile, and they’re not enough to generate success. Customer loyalty is dying. Research shows that only 13% of modern customers consider themselves to be loyal, with the majority preferring to ‘shop around’ for deals. We’re living in the era of comparison, with customers happy to select whichever option suits them best at the time they’re searching for a solution.

The secret to retaining customers? Giving them exactly what they’re looking for.

What do Modern Taxi Riders Want?

Based on research by the Department for Transport, customers are already quite satisfied with the reliability and the availability of their taxi services. What they aren’t so happy with is the cost. In fact, only half of all taxi riders are content with taxi pricing.

Pricing must be a major consideration if taxi firms want to retain clients in competitive markets. Savvy customers don’t want to pay above the standard prices to increase the profit margin per fare for the driver, which is why services such as Mytaxio, which take an alternative approach, are becoming the preferred option. With this service, customers can also claim loyalty credit which offers discounted rides in the future, making loyalty financially rewarding and providing an incentive for continued custom.

But it’s not just the fare itself that needs to be considered; it’s cost transparency, too. Customers want complete clarity when it comes to ride pricing, which is why apps which share vital information with customers are also an essential aspect of retention.

Selecting the Right Taxi App Solution

not all taxi cab apps were made equal. Some offer a poor customer experience, and this can cost you customers. It’s reported that 60% of customers are less loyal to a brand after poor app performance, which shows that not just any old taxi app solution will do.

It’s recommended that, in order to retain clients in a competitive market, drivers only use top taxi apps such as Mytaxio which is not only simple to use but also offers a straightforward, streamlined customer experience through the entire booking journey.