HOUSTON – Difficult economic times are forcing customers to take a hard look at where they can tighten their belts and how they can stretch their hard-earned dollars. Digital coupons and in-store promotion redemptions are on the rise as consumers look to save on a range of items. Gas rewards are another way in which consumers are demonstrating their frugality and the gas-centered convenience industry finds itself in the midst of this trend.
Convenience store and fuel marketers who have already taken the time to invest in a rewards program are gaining an edge on their competitors who are still waiting to take the leap into loyalty.
This opportunity is significant. The Convenience Consumer Insights Panel (cciPanel), a partnership between MSA and Paradigm Sample, found that 89% of today's busy customers would be motivated to shop more at stores that participate in these programs. Furthermore, where gas operators offer programs so shoppers can earn rewards when they fill up on gas to get a discount to redeem at a partnering retail outlet, three-quarters reported that they would definitely or probably make these gas stations and convenience stores their regular station to fill up.
Phillips 66 has been a leader in driving rewards for its branded marketers. Among the biggest commitments Phillips 66 has made is its investment in a growing loyalty program by launching the KickBack Points Program at its branded sites in 2011.
The company recognized that loyalty programs are increasingly influencing where consumers purchase fuel, how much they spend and which brands they purchase.
Furthermore, when this loyalty sales data is collected and analyzed, it can yield analytics and metrics to provide a better understanding of customer shopping habits.
New research from Loyalty 360, a loyalty marketer's association, indicates that when brands don’t connect customer data with marketing efforts, the results are "inconsistent engagement that leads to lost opportunities, diminished results, eroded margins and fleeting brand value…engendering a loyalty divide."