Cyclistic is a bike-share program that stands out with its diverse range of offerings, including over 5,800 bicycles and 600 docking stations. What sets Cyclistic apart is its commitment to inclusivity, providing reclining bikes, hand tricycles, and cargo bikes to cater to people with disabilities and riders unable to use standard two-wheeled bikes. While the majority of riders opt for traditional bikes, approximately 8% of users take advantage of the assistive options. Cyclistic's bikes are commonly used for leisurely rides, although around 30% of riders rely on them for their daily commute to work.
Lily Moreno, the director of marketing, believes that the future success of the company depends on maximizing the number of annual memberships. Consequently, our team aims to gain insights into the different behaviors and preferences of casual riders and annual members when using Cyclistic bikes. Based on these findings, we will develop a new marketing strategy to convert casual riders into annual members.
Cyclistic launched its bike-share program in 2016, which has since grown to encompass a fleet of 5,824 bicycles tracked via geolocation and locked into a network of 692 stations across Chicago. The bikes can be unlocked from one station and returned to any other station within the system at any time.
Until now, Cyclistic's marketing strategy has relied on creating general awareness and appealing to broad consumer segments. The program's pricing plans, including single-ride passes, full-day passes, and annual memberships, have played a crucial role in achieving these goals. Customers who purchase single-ride or full-day passes are referred to as casual riders, whereas those who opt for annual memberships become Cyclistic members.
Cyclistic's finance analysts have determined that annual members generate significantly higher profits compared to casual riders. While the pricing flexibility helps attract a larger customer base, Moreno believes that maximizing the number of annual members will be the key to future growth. Instead of targeting new customers with a marketing campaign, Moreno sees great potential in converting casual riders into members, given that they are already aware of the Cyclistic program and have chosen it for their mobility needs.
Moreno has set a clear goal: to design marketing strategies focused on converting casual riders into annual members. However, to achieve this, the marketing analyst team needs a deeper understanding of the differences between annual members and casual riders, the motivations behind casual riders purchasing memberships, and how digital media can impact their marketing tactics. Moreno and her team are keen to analyze the historical bike trip data from Cyclistic to identify relevant trends.
The first phase of the data analytics process is the Ask phase. The questions formulated are:
The Cyclistic trip datasets made available by Motivate International Inc. under this license. The 12 months of data (from April 2022 to April 2023) shall be used in this analysis.
Using the ROCCC Analysis,