Retailers everywhere are working hard to drive loyalty, but it’s not easy. Even the most well-intentioned rewards programs can fall short of expectations.
As you consider your strategy, here’s three things to keep in mind.
1. Personalize the Offer or Provide Choices
In a recent survey of more than 20,000 GasBuddy users, 45% of those who rarely use rewards programs at c-stores said they don’t use them because the offers aren’t relevant. This was the number two complaint behind minimal savings (48%).
Personalization matters. But when retailers aren’t in a position to leverage purchase history, they can still achieve a similar effect by providing customers with choice. Sixty-four percent of survey respondents would re-engage with rewards program if they had the ability to accumulate points and spend them on whatever they want.
At the same time, there are some generic offers that really do resonate. Fifty-eight percent of respondents said they want fuel discounts for in-store purchases. This makes sense considering that nearly two-thirds (65%) of respondents in GasBuddy’s 2019 Consumer Sentiment on Gasoline Study say that gas prices impact their ability to spend money on other services and items.
2. Tailor Rewards to Specific Use Cases
Few would deny that Starbucks has one of the best rewards programs available, and it’s obvious that the ability to skip the line is a significant reason why.
But that may not be the answer for everyone. The key is to figure out what’s relevant to your customers rather than copying someone else’s strategy. Do your stores have car washes? Perhaps it’s worth considering a monthly subscription.
Then again, there are retailers who might benefit from giving customers the ability to skip the lines. Twenty-two percent of GasBuddy users who rarely use rewards programs say that would change their mind. Cumberland Farms is currently testing a coffee subscription program that enables this, and it’s sure to appeal to time-starved customers who are looking for a cup of coffee on the way to work.
3. Exceed Expectations at the Store Level
Rewards programs or not, loyalty ultimately begins with the customer experience. It’s hard to get excited about great deals if it means visiting dirty stores and interacting with rude employees. And let’s face it: today’s customers can afford to be picky. Competition is fierce at the last mile of retail, and it’s easy to avoid the dirty, boring, and unexceptional.
Retailers can no longer afford to ignore customer feedback. Even when mystery shops are conducted a few times each year, it’s essential to keep a finger on the pulse of day-to-day operations. Issues can arise quickly. That’s where online ratings and reviews drive value.
More than 10.2 million individual station ratings were submitted by GasBuddy users in 2018. By using our Reputation Management service, retailers gain real-time access to this feedback and can monitor stations across their brand. They’ll know if and when certain locations fall below the brand standards—or if certain stores outperform the rest. Our clients also establish lists of keywords to monitor written reviews. This helps them quickly identify and resolve issues.
To learn more about how to turn fuel customers into loyal store customers, check out GasBuddy’s new “From Canopy to Store” report or get in touch with us at [email protected]
