Loyalty Programs in Fuel Retail: A comprehensive Guide (2021)

When it comes to gaining customer satisfaction, Oil and Gas Retail businesses face particular obstacles. For one thing, fuel prices are highly controlled by the government and fluctuate with fluctuations in global crude oil prices, resulting in small profit margins on fuel sales as compared to other industries. Thanks to the fluctuations of the selling price of gasoline and the dynamic nature of the industry, petrol retailers’ profitability usually decreases as prices grow and increases when prices decline (according to the Association For Convenience & Fuel Retailing).

Loyalty programs can help shape consumer behaviour, particularly among c-store consumers, according to fuel retailers and major oil marketers. According to the C-Store Shopper Study, the average customer spends $11.17 per visit, which is 29 percent more than a nonmember ($8.66).

We believe that an insightful loyalty campaign and a commitment to customers has tremendous potential to transform a retail fuel brand. Here are several key ideas and observations into how fuel and oil firms should execute a consumer-centric, long-term reward program.

Best Practices for Creating Fuel Retail Loyalty Programs

Accessible for the wide range of customers

From time-crunched businessmen to unhurried grandpas, fuel stations are frequented by a varied segment of consumers. Maintaining the loyalty program’s relevance to these different customer personas is vital to its long-term sustainability.

You will achieve this by using an omnichannel loyalty scheme. By unifying consumer data across different networks and creating a Single View of Customer, these services support an omnichannel communication approach.

However, engagement is just one aspect of the omnichannel approach, while accessibility is the other part. You always offer your loyalty package from a smartphone app by allowing digital cards and social media integrations. To state the obvious, this is a big benefit today because almost everyone has their phone with them at all times, even if they lose their loyalty card.

At the same time, brands can make it possible for shoppers to use physical cards or self branded wallets to join loyalty programs, with service provided by networks such as contact centers, since less tech-savvy consumers also want a human touch.

Leveraging & Optimizing Fleet Loyalty

A fleet loyalty program is a advanced fuel-retail payment solution provides a credit line to companies with a fleet of cars. Find a taxi operator that is using a fleet loyalty scheme from a particular fuel retail brand. The scheme not only provides an easy, fast mode of payment for fuel transactions for all cab service company drivers, but it also ensures a steady stream of business for the fuel retail brand.

The scheme also credits regular clients (both individual drivers and the company itself) for their expenses by offering the business fuel on credit when using the cards.

Integrating Loyalty and Closed Payment system to Improve Service Times

For on-the-go drivers who are concerned about being on schedule, delivering prompt services is critical to delighting consumers. This can be achieved by providing a transaction and refueling experience that is fast, simple, and convenient.

The optimum time for refueling a car is no more than 3 minutes. Digital solutions such as cashless payments or closed loop mobile payments aim to minimize precious time while increasing the reliability of transactions which are now used worldwide.

Fuel Retailers such as China National Petroleum Corporation (CNPC) have introduced “smart fueling stations,” which allow customers to fill up their vehicles without leaving their vehicles. CNPC claims that intelligent fueling has been reduced from six to roughly two minutes for fueling time.

Fuel Retail Brands can save even more time for their customers by allowing them to pre-book facilities or meals via their smartphone app.

Offering Personalized Rewards for Each Customer Segments

Implement customer loyalty features that go beyond mere rewards or points for all consumers. Fuel retail brands can observe consumer behaviour, segment them based on their individual needs, desires, and goals, and then reward them with highly customized, experiential rewards by identifying the dynamics of different customer segments.

Rewards and engagement must be personalized based on desired behavior, involvement, place, age groups, live activities (birthdays, anniversaries), and much more from various consumer segments. As an illustration:

· Refueling is done by a driver who suits the ‘parent’ profile. Brands will trigger immediate bids via the bill, text messages or app such as a limited time discount on a common snack for children in partner stores.

· Brands can upsell better-grade fuel or higher-priced goods with higher margins to high-spending consumers or others that suit a “company” profile. After a certain number of visits each month, brands can provide a free service or product (such as a car wash or in-store coffee) to high-frequency consumers. With a higher loyalty tier, some companies give better savings.

· Every month, the American fuel retail brand Speedway runs thrilling Speedy Rewards Sweepstakes. Customers can use their reward points to join the Sweepstakes — 50 points entitles them to a $500 Speedy gift card — and they can register several times to maximize their chances of winning.

Hyper personalization focused on advanced geolocation

Fuel retail brands can enable customized deals based on advanced geolocation and beacons to alert people to nearby fuel stations and stores. This is a smart way to use a competitive approach to beat out rival brands in a specific service market, which will help change consumer behaviour in your favor. Brands must take caution not to trigger contact in an obtrusive manner, as this will lead to consumer churn.

Summary

Fuel retailers must radically transform their approach to customer engagement as market needs and preferences shift. They must shift to a consumer-centric business model in order to capitalize on emerging product and service opportunities, as well as integrate technology platforms and innovations to improve the overall customer experience. The creative means of doing this is a sign of their achievement.