DSB - Back on Track

Back on Track - A strategy on how DSB can increase
passenger pr. kilometer by improving the customer experience
Michel Larsson, Cand. Merc. Kom., CBS
Christian Toft Rasmussen, Cand. Merc. Kom., CBS
Ulf Valentin Jensen, Cand. Merc. IB, CBS
Henrik Madsen, Cand. Merc. Kom., CBS

1: Current situation
• DSB fixed turnover issues
and has successfully re-
established profitability,
putting the company “in
balance”
• As a result of this, DSB now
seeks to put the customer
satisfaction at the centre of
attention
2: Goals
• Formulate a three-year
business plan with
regards to the triple-
bottom line
• Increase the amount of
passenger kilometres of
7.5% after three years
• Support the political
ambition of doubling
passenger kilometres by
the year 2030
3: Constraints
• A weakened image
and reputation
• Expensive
technological
investment
• Price differentiation is
limited due to
governmental
restrictions
4: Solution
• Informative campaign
to strengthen image
and reputation
• Introduce new, better
complementary
services and products
• Integrate current apps
into one platform
An informative campaign is
launched to change the
Danes’ attitude towards
DSB - they’re actually not
that bad…
Page 4
DSB should put customer
satisfaction in centre and
develop services and
products to meet costumer
needs and expectations.
Page 5
DSB’s existing smartphone
applications should to be
integrated into “one app to
rule them all” with further
future developments.
Page 6
DSB can increase customer travel kilometers by focusing on
the customer experience, developing new services and
products and creating an informative campaign
Introduction Situation Recommendations Implementation Risks

Getting 3.72 million more leisure travellers to take the train
in 2017 will ensure a 7.5 % increase in passenger kilometers
Assumption: The numbers from DSB Annual Report
2013 are assumed to be the same for 2014, creating
the base for the market estimations.
F&R trains covers a major part of the kilometers traveled pr. passenger. The trips are dominated by
InterCity & regional trains which are traveling over larger distances, hence making them a more attractive
target. Leisure travelers account for 37 % of the journeys.
The proposed initiatives are therefore primarily targeted to this customer segment.
47000
48000
49000
50000
51000
52000
53000
54000
4,2
4,3
4,4
4,5
4,6
4,7
4,8
4,9
Segment km 2014 Segment km 2017
No. travels [F&R]km [mia.]
Share of DSB total kilometers traveled &
number of journeys
35%
21%
18%
16%
8%
2%
Share of DSB total passenger
kiliometers 2014
East-West
S-Train
East
West
DSB Øresund
Others
0%
20%
40%
60%
80%
Target segment Rest
The target segment comprises 69
% of total passenger kilometers
Focusing on East-West, East and
West passengers we narrow our
focus on the segments
comprising 69 % of the total
passenger kilometers.
To reach the goal of a 7.5 %
increase in passenger
kilometers, an increase of
333.75 mio. km traveled and
3716.85 more travels in our
segment by 2017.

Drivers for customer satisfaction
Prices
DSB is constraint by
the government .
Prices cannot exceed a
specific maximum.
DSB cannot adjust its
prices according to
supply & demand .
Expensive tickets are
Top of Mind for
consumers
Frequency &
Punctuality
Comfort
Consumers are
dissatisfied with the
high ticket prices
+Time.
Consumers expect
travel time to be used
efficiently. Travel time
is work time.
Wifi is not at a
statisfactory state
No sales cart or
functioning vending
machines
Danes have a high
level of expectations,
relative to their EU
counterparts
Stable Wifi and
access to
refreshments are
essentials
DSB cannot decrease
frequency if demand
is low
F&R: 93 % punctuality
in 2013
Punctuality is the
highest in Europe
Reputation for delays
is nevertheless high
Non-users have more
negative impressions
of DSB
30-35 % of delays are
caused by DSB
DSB suffers from a
bad reputation in
spite of good
frequency and
punctuality
Traffic
information
Generelly functioning
well.
Information can be
reached through a
number of different
platforms, incl.
Homepage, apps,
monitors & boards on
stations.
Difficulties in
informing adequately
about alternative
routes when
unforseen delays
occur.
Overall well
functioning, but
room for improve-
ments are present
Stations
Complex ownership
structure leaves
responsibility split
between entities.
Stations differs widely
& so does the
commercial portential.
No wifi on stations
Need for customized
maintenance
101 stations have
preservation status.
Declining interest in
potential
commercial profits
deduced from the
stations
3 drivers are essential for the…

Informative campaign increases perception of punctuality
• DSB ranks as one of the top 3 train companies of Europe when
it comes to customer satisfaction. Regional trains are 93% on
time being among the top in Europe. Furthermore, the root
cause of delay is often out of DSB’s hands.
• However, its reputation ranks surprisingly low and 75% of
Danes want the company privatized. Sadly, 1.,6% of Danes
think delays when asked about DSB.
Claim: DSB performs better than it is credited for by Danes
Reputation Campaign
Solving the reputation issue DSB faces
• Develop and launch the information campaign
• The campaign has one message: “DSB beats its
European counterparts”
• The campaign should be mass mediated to reach all
potential customers
Campaign outcomes:
• The campaign puts DSB in a competitive
international perspective (positioning)
• Improves DSB’s image (short term perspective)
• Contributes to building a stronger reputation (long
term perspective)
• Further potential for auto-communication (reaching
inside the organisation – aspirational talk)
Frequency
It seems unrealistic to implement a higher train frequency
within a period of 3 years. It will involve enormous investments
and legislative changes through political shifts – which makes it
a long term issue.
Responsibiliy of delays

DSB can increase passenger kilometers by developing new
services enhancing the comfort
• One of the perks of not travelling by car is being able to relax
and enjoy your free time. However, in F&R trains it is not
possible to buy any forms refreshments during the trip.
• WiFi is currently available during F&R train travels, but at an
extra cost, and only through TDC. Also, cell phone signal is
not of any help when travelling in rural Denmark.
• DSB should have consumer experience as a top priority
when developing additional service products.
Free WiFi - always
Available internet is
an essential part of
today’s society. Free
WiFi is comfort at is
finest.
Vending machines
A basic part of traveling is
access to snacks and
drinks. Back to basics
means back to vending
machines.
Frequent travellers
program
This gives the passenger
a chance to collect
reward points by
travelling by train.
Introducing more comfort to support the “+time” concept
Constraints
Implementing free-to-use
WiFi for all users of DSB
requires an investment of
400 million DKK, although
it is sure to increase the
quality of customer
experience.

Introducing the App
“DSB Rejse”
The new app should integrate existing DSB apps into one main platform giving the user
a variety of options:
• Buy any kind of ticket (depending on customer need)
• Find and choose your travel plan
• Rejseplan is integrated
• Opportunity for future “A-Z Travel” development integration e.g. connecting to available rental cars or
bikes in the area of arrival
• Enable push-functions regarding information on your chosen travel plan. Delays or cancellations will be sent
immediately
• Drunk-mode
• More simple interface when identifying travel plans and buying ticket
• Automatically turns volume up and warns you loudly when your train is arriving, or when you have get
get off.
• Configure preferred ticket or travel forms for easier and faster use
Arguably, this seems illogical and
can be difficult comprehend for
users.
Traffic information needs are to be centralized through
one platform
Issue: DSB has developed different apps with useful services.

Developing, implementing and strategic initiatives – boosting
customer experience
2015 2016 2017
BoostingCustomerExperience
Planning &
Developing
Reputation
enhancing
campaign
App – one
integrated
platform
Planning & Developing
Implementing – campaign active
Beta
testing
Implementation & active
Continous evaluation & improvement
Optimizing
travel
experience
Installing vending
machines
Upgrading wifi in trains & on stations
Developing frequent flyer
program
Pilot Implementing & continous development of frequent flyer program
Operational & stable wifi
Note: Percentage
levels are estimated
from the 2013 level.0,50% 0,50% 0,50% 0,50% 0,50% 0,50%
1%
2%
3%
2%
1%
1%
2%
3%
3%
0,50%
0,50%
0,50%
0,50%
1,0% 3,00%
0,00%
1,50%
3,00%
4,50%
6,00%
7,50%
2015 Q1+2 2015 Q3+4 2016 Q1+2 2016 Q3+4 2017 Q1+2 2017 Q3+4
Contribution kilometers traveled through initiatives to
Customer Experience
Vending machine Reputation campaign
App Frequent flyer
Operational & stable wifi
Reputation enhancing campaign is
eestimated to run from 2015 Q3 to
end of 2016 and the effect is
expected to be diminishing from
there on
The App is expected to increase km
traveled in 2017 by 3 % and keep
contributing by that margin
The investment in internet access is
expected to contribute with a 3 %
increase in 2017 and onward

Risk overview
Risk associated with recommendation
Economic risk
Macro economic factors
Technological risk
Reputational risk
Partnership risk (state & BaneDanmark)
Implementation risk
Degree of risk ( 1 to 4) How to handle the risk
DSB is profitable and it will be seen as a major investment
Diversify and expand customer base (especially in F&R)
Use and develop already-known knowledge
Every recommendation will only benefit reputation
Increase in reputation and usage benefits all
Follow timeline and prepare for possible delays
Risk measurement and effects of initiatives on the triple
bottom line

1: Current situation
• DSB fixed turnover issues
and has successfully re-
established profitability,
putting the company “in
balance”
• As a result of this, DSB now
seeks put the customer
satisfaction at the centre of
attention
2: Goals
• Formulate a three-year
business plan with
regards to the triple-
bottom line
• Increase the amount of
passenger kilometres of
7.5% after three years
• Support the political
ambition of doubling
passenger kilometres by
the year 2030
3: Constrains
• A weakened image
and reputation
• Expensive
technological
investment
• Price differentiation is
limited due to
governmental
restrictions
4: Solution
• Informative campaign
to strengthen image
and reputation
• Introduce new, better
complementary
services and products
• Integrate current apps
into one platform
An informative campaign is
launched to change the
Danes’ attitude towards
DSB - they’re actually not
that bad…
DSB should put customer
satisfaction in centre and
develop services and
products to meet costumer
needs and expectations.
DSB’s existing smartphone
applications should to be
integrated into “one app to
rule them all” with further
future developments.
DSB can increase customer travel kilometers by focusing on
the customer experience, developing new services and
products and creating an informative campaign

DSB - Back on Track

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