NACS 50th Anniversary: Celebrating 50 Years

January 2007

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  • Consumer expectations at convenience stores continue to increase
  • Efficient fueling equipment factors into the value proposition
  • Consumer standards are higher for store lighting and security, too

NACS Magazine

Customer Safety and Fueling Equipment Drive Satisfaction
By Bob Swanson

It comes as no surprise that consumers view safety, both inside and outside of the store, and the efficiency of fueling equipment as high-impact drivers for satisfaction, according to the 2005 NACS Customer Satisfaction Benchmark study. The surprising news is that the impact of convenience - our major proposition - has diminished relative to other drivers. The study, conducted by Clickin Research Inc., used data collected in connection with NACS/Coca-Cola Leadership Council fieldwork using the MyCStoresOnline customer satisfaction tool.

The purpose behind the NACS benchmark study is to sharpen convenience stores' competitive edge in areas identified by consumers as important for loyalty and ripe for improvement. This consumer feedback can also help management develop the big picture of overall store satisfaction into concrete store-by-store improvement plans. The most recent benchmarking indicates that competition continues to improve and that consumers' expectations for convenience stores are shifting to higher levels. That puts more pressure on retailers to meet or exceed these expectations, as well as increase attention to other retail formats to stay competitive.

Investments in Fueling Stations
One of the key drivers in terms of customer impact is fueling equipment, and in past years retailers have made significant investments in this area, such as accuracy of signs, gauges and meters at the fueling dispensers and options for methods of payment. Consumers rated fueling equipment at 8.92 on a 10-point scale in 2005 versus 8.82 in 2003. Retailers worked hard at ensuring equipment such as gasoline pumps and air pumps operate as intended for customer use. Customer perceptions of the equipment service functionality rewarded this heightened attention, as ratings were up from 8.80 in 2003 to 9.01 in 2005.

Payment options are a key factor at convenience stores, as new payment technology offers more choices and convenience. Ratings for payment options were 9.11, higher than any other factor for fueling equipment, a strength that can be leveraged competitively against consumers' perceptions of convenience. Information display at the fueling station, a second attribute added to the customer satisfaction survey in 2005, came in at a strong 8.96.

Given the substantial price increases for motor fuel in recent years, the attention given to the gasoline category by customers is increasing, and this attention goes beyond just the price per gallon. As demonstrated by the satisfaction scores, customers are now eying the entire forecourt area and all its convenience factors as part of the value proposition when paying the bill.

Desire for Safety
The other high-impact area for consumers when measuring store satisfaction is safety: Consumers want to feel safe and secure inside and outside of the store at which they shop. Influencing their perceptions of safety are factors such as the number of clerks inside the store, the demographics of shoppers around them and the location of the store. Consumers also want to be able to see into the store from the outside, as well as have adequate lighting both inside and outside the store. Although the satisfaction score for a feeling of safety and security for 2005 was a strong 8.89, it was down from 9.04 in 2003.

Also dropping in satisfaction was the ability to see inside the store. However, lighting on the premises increased slightly to 9.10 in 2005 from 9.06 in 2003. It appears that customers are setting higher standards in the safety arena and are reacting to what they perceive as a more threatening environment at all retail formats. Many retailers are responding by ensuring that lighting is adequate at the store, but more needs to be done to offset the decline in customer perceptions about their feelings of safety and security.

Next month, this analysis of customer satisfaction at the store will continue with all the scores from the 2005 NACS Customer Satisfaction Benchmark study.


Bob Swanson is the NACS director of research and statistics. He has focused on developing relevant convenience store industry metrics since 1990 with particular emphasis on the production of the annual NACS State of the Industry report. Contact him at (703) 518-4219 or rswanson@nacsonline.com.