The Business of Parking

The parking experience has played a significantly higher role in recent years, and organizations are focused on improvement in various ways. Whether people park on the street, in surface parking lots, or in structured facilities, parking is an essential part of many journeys. Cities, universities, airports, and owners and operators have taken extensive measures to maximize these experiences for drivers.

While there are many reasons to take the initiative to improve parking experiences, the impact on the bottom line can’t be overlooked. Now more than ever our industry is embracing a customer-centric approach. Efforts include implementing solutions to obtain data-driven insights, creating positive first and lasting impressions, and employing strategies to understand how consumers make decisions.

Owner and operator objectives are a complex combination of attracting customers to their parking spaces while making parking so efficient and smooth that it barely registers on the way to their destinations. Understanding people’s patterns and preferences affords a valuable understanding of consumer behavior and the information needed to establish loyal, repeat customers.

Revolutionizing Parking Through Data-Driven Insights

People today are constantly on the move, and the demand for parking is high. Data plays an important role in optimizing operations, enhancing customer service, and ensuring the smooth flow of traffic. The technologies available to achieve these goals continue to improve. The ability to obtain and evaluate data has transformed our industry, allowing organizations to harness the power of analytics to make informed decisions, streamline operations, and maximize revenues.

On- and off-street parking areas can now be equipped with an array of sensors, cameras, and software systems that identify patterns and behaviors. Data captured includes parking utilization, duration of parking events, peak utilization times, seasonal trends, payment methods, and even vehicle types. Collecting and analyzing these figures can provide insights that were previously unimaginable. Armed with this information, organizations can implement dynamic pricing models, designate reserved spaces, and offer amenities aimed at maximizing space utilization and revenue generation.

Parking data can also enable operators to improve patron comfort when it comes to finding available parking. For many, issues like the search for parking, long lines, and payment option confusion can be very stressful, and can impact their likelihood to visit (or return to) a destination. Rather, real-time availability information, predictive analytics, and automated payment systems and apps can lead to a more convenient parking process and happier customers.

Finally, effective parking management comes with considerable operational costs including maintenance, security, and staffing. Data analytics can help identify areas of inefficiency and save money, improving your bottom line and freeing up financial resources for customer service, staff support, maintenance, security, or amenities.

Harnessing the Power of First (and Lasting) Impressions

It is well documented and often stated that parking is the first and last experience at many destinations. First impressions are crucial. Crafting a distinctive identity that resonates with customers and encourages them to return will go a long way toward achieving repeat business. Convenience is key and competition is fierce. Aesthetics play a vital role in creating a positive memory and establishing a competitive advantage.

Eye-catching aesthetics and effective branding create that first impression and a sense of comfort for patrons. Forward-thinking organizations now recognize the importance of transforming their parking areas into welcoming, efficient, and memorable spaces. This too can be applied to both on- and off-street parking areas.

Physical appearance can set the tone. Attractive design, well-maintained landscaping, clear striping, clean and safe surfaces, and convenient amenities can make a big difference. Each of these elements are essential to providing a sense of safety and comfort that patrons value.

Good branding, combined with clear and concise signage, conveys the identity of the parking area, and provides a connection to the parker. This is a necessity when it comes to standing out, enhancing user comfort, and creating a memorable experience. It can turn an ordinary parking event into a memorable one.

While each of these elements is crucial to a customer-centric operation, the important role of a well-trained and friendly frontline team shouldn’t be overlooked. Parking attendants, maintenance staff, enforcement officers, and parking ambassadors can establish that emotional connection that no amenity can. They are the people on the ground to strengthen the feeling of safety in a garage, explain new technologies, maintain clean and comfortable parking areas, provide guidance regarding parking rules or ordinances, and much more. A polite and helpful staff with a genuine desire to assist customers can leave a lasting impression.

Unlocking the Psychology of Parking Decisions

Parking is not simply an exercise in logistics, but also a study in human psychology. Parking owners and operators are tasked with facilitating efficient space utilization, while understanding how people make decisions.

A happy customer is not only more likely to return but may also spread positive word-of-mouth. Understanding what makes them tick, and striving to provide the most personal parking experience possible will go a long way toward encouraging future visits.

So many things go into trying to meet the unique needs of each customer. Everyone prioritizes a different element along their parking journey and will seek them when making their decision. Proximity to the destination, price, perceived safety, and vehicle-specific amenities like EV charging stations are just a few.

There are several ways organizations identify these priorities for those they serve. Customer surveys, social media engagement, community outreach, and industry education go a long way toward gaining patron trust, while understanding the actions needed to provide those personal parking experiences and keep people coming back.

Driving Innovation

By harnessing advanced data insights, curating memorable experiences, and understanding the psychology behind decisions, organizations are revolutionizing their approach to creating the best parking experiences possible while establishing a loyal base of repeat customers. While customer service has always been a priority, the parking industry is in the midst of a customer-centric revolution. The recognition of parking as an integral part of today’s urban environment continues to inspire progress and create a future where parking is more enjoyable for all users and financially beneficial for the organizations creating these experiences. ◆