Drive Sales Even While People Drive Less
The road ahead for fuel retailers is challenging.
The pandemic accelerated many trends. Together with existing demand pressures, the road ahead for fuel retailers may be rocky. People just aren’t using the same amount of fuel as they used to.
- “Miles per gallon” is currently “miles per week”
- Between 1-in-5 and 1-in-6 workers are forecast to work remotely after COVID-19
- Online shopping is increasing (less trips to stores)
- Fuel economy will continue to improve
- Electric Vehicles sales will continue to climb Problems with “Loyalty”
With fuel demand down, what’s a retailer to do?
Loyalty programs are one tool that was supposed to help retailers stand out, drive traffic, and retain customers—at least in theory. The problem is that many of these apps are actually discount programs with few or no engagement elements. Does anyone really expect a post-COVID customer to modify her behavior for three to five cents a gallon if she’s measuring efficiency in miles per week?
- Loyalty programs are expensive to set up
- Small price discounts are unlikely to resonate
- Consumers are loyal to restaurant brands, but agnostic about fuel brands
This is where an effective promotions campaign can change the game. Imagine for a moment that a consumer is running low on gas and trying to decide between two stations. One station offers a discount of three to five cents per gallon if they download an app, sign up for an account, and connect their credit or debit card. It’s a lot of work for little reward.
The other station uses our Stop and Win™ program. The consumer receives a complimentary scratch-off game card for a minimum 10-gallon fill or purchases of at least $10 inside the store. If they’re lucky, they may win cash prizes or a new car. Not only does this transform a mundane transaction into something exciting, but it provides a powerful incentive to return next time.
Crowdfund Lotto-Level Prizes
Our goal with the Stop and Win™ program is to level the playing field for fuel marketers, small chains, and independents. It only takes 100 locations to pool resources in order to create lottery-level prizes. Program exclusivity also locks out the competition and prevents them from offering the same deal. So, the exclusivity Stop and Win™ offers is a true differentiator and competitive advantage, whereas ubiquitous loyalty programs are not. “Loyalty” programs have proven to not foster actual loyalty. They have become gas wars fought with electronic devices, where retailers sacrifice margin and profits without gain. The ROI of the Stop and Win™ program, by contrast, is estimated at 912% for a three-month program costing $1,695 per participating location!
To join our inaugural BTL launch campaign (covering Christmas, New Year’s Day and the usually slow period following) reach out to me directly through my contact info listed below.
The larger companies may have a better hand, but that just means everyone else has to play smarter. The Robust Promotions team can help.
For more information, contact: