With NACS coming up next month, we wanted to focus on c-stores and provide a blog with useful information for the industry. We are often asked why a c-store should have a loyalty program. In this post, we will answer that, as well as explain the challenges and opportunities that come along with owning a c-store. Finally, we will tell you where a loyalty marketing program comes in and how it will help your c-store to succeed. For more in depth information, you can download our free whitepaper, "The Ultimate C-Store Guide to Loyalty."
Why have a loyalty program?
- 2.65 billion people are members of loyalty programs
- C-Stores that send loyalty members two communications per week see three times more customer visits than businesses that do not send any communications. Merchants see an increase of sales anywhere from 15% to 50% as a result of these campaigns.
- There has been a 26.7% growth of US loyalty program memberships between 2010 and 2012.
- The average number of loyalty programs per US household is 21.9, up from 18.4 in 2010
What are the challenges and opportunities?
- Lots of regulations
- Constant increases or decreases in price of gas
- Fuel theft
- Competition from drug stores and hyper markets
- Razor thin margins on fuel
All of the challenges faced as a C-Store have a direct impact on their bottom-line. There is one factor that drives the success of a c-store: their ability to bring customers into the store.
- Increase the basket size
- Increase the frequency of visits
- Decrease fraud
- Increase profits
According to stats shared, only 1% of consumers are influenced by pump toppers. Even with all the marketing opportunities at the pump, the reality is:
- 69% of consumers simply fill their tank and leave – never going into the store
- 31% go into the store and the average basket is $4.82
Where do loyalty programs come in?
- Loyalty programs are an effective way to drive customers into the store.
- C-stores that have a loyalty program with active communications (emails and texts) see their in-store visits increase to 50 – 60% compared to the average 31%.
- If the average c-store has 277 customers per day per store, then an increase from 31% to 50% with the average basket of $4.82 delivers $92,918 per year for one location.
- If you can increase the average basket with effective cross-sell, you gain even more revenue.
- Sending targeted promotions to your members via email and text marketing will increase in-store visits.
To learn more, download our free whitepaper, "The Ultimate C-Store Guide to Loyalty" which covers topics such as:
- Why you should have a loyalty marketing program
- C-Store challenges and opportunities
- Where loyalty programs come in
- Email marketing
- Text (SMS) marketing
- Improving the customer experience
- How to compete with the competition
- And more!
Are you going to be at NACS in October? We will be at booth 1712, stop by and see us. We hope to see you there! In the meantime, click the button below to download your free whitepaper now!