SPECIAL SERIES ON FRICTIONLESS ENGAGEMENT
Frictionless Engagement Positive Revenue Impact is a competitive imperative for convenience store retailers, according to Andrew Robbins, president of Paytronix Systems, the most advanced provider of loyalty programs and customer engagement solutions for restaurants, retail chains and convenience stores.
FRICTIONLESS ENGAGEMENT
Cruizers, Ricker’s, Parker’s, 7-Eleven and Enmarket are Andrew Robbins among the convenience retailers that are testing some type of frictionless checkout at their stores. Family Express, a Paytronix client, is also working on frictionless checkout and engagement solutions. The regional retailer, like other convenience chains, sees the writing on the wall. “They don’t want to get ‘Amazoned,’” said Robbins, referring to both the online retailer’s powerful e-commerce platform and its small, but growing Amazon Go brick-and-mortar chain with its “just walk out” technology. For years, Amazon has used customer data to enable a more convenient purchasing experience. From making relevant product recommendations based on past purchase behavior, to making the actual purchase and delivery of product as frictionless as possible. “When we talk about frictionless engagement, we believe it’s all about reducing the hurdles or barriers for a consumer to engage with the brand,” said Robbins. “In frictionless engagement, we want to conduct commerce and communication with consumers using their preferred method of interaction.” The rising demand for off-premise ordering coupled with frictionless transactions is opening a new frontier for convenience stores. Armed with more consumer data than ever, retailers need to think relevance and omnichannel. Robbins pointed out that some consumers prefer mobile messages like SMS or push notifications. Not only is using the preferred channel important today, but the customer expects the message to be both timely and relevant. “Let’s communicate with them via their preferred channel and send a message that is relevant to the individual. That’s an effective way to build brand preference and trust,” said Robbins. After communicating with consumers in their preferred way, relevancy becomes paramount. “When they get a message, they want it to be relevant to them. Some messages are important and relevant, but some are not,” according to Robbins. For example, sending someone a message about lottery tickets and cigarettes might not be the right kind of
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Paytronix suggests eight key frictionless methods for acquiring more customer data: 1. Coupons and credit card token matching. Measure new customer vs. repeat customer coupon efficiency and then convert the customers from unknown to known customers. 2. Apple or Google NFC tap and NFC with payment. It is the ultimate convenience: one simple tap at the point-of-sale system transfers payment and program membership to the merchant. And if the customer is not yet a member, Google and Apple, through the Paytronix integration, will ask them to join. 3. Text to join. Customers can join by texting their email to a short code and keyword. 4. Text to join via POS. Cashiers enter the customer’s mobile phone number through the point of service. 5. Mobile app. A retailer’s best customer is likely the one who will download and utilize a mobile app. 6. Kiosk enrollment. Kiosks are everywhere in the convenience channel and by displaying the loyalty enrollment page, customers have a one-stop shop to enroll. 7. A physical card. 28 percent of U.S. adults still do not have a smartphone. 8. Reverse enrolling. Invite members to join a program on your website.
message if they are a non-smoker and typically shop your store for milk and bread. “In frictionless engagement, don’t make a consumer read four different messages if only one applies to them,” said Robbins. Paytronix has worked with both convenience retailers and restaurants to identify clusters of customers who will respond to a particular message that is relevant to them. “This is where artificial intelligence comes in,” he noted. “We look at the types of messages people like and what they’ve purchased before to be able to send them relevant messages.” Paytronix can predict the next visit to the pump with machine learning. If the customer misses an expected visit, Paytronix automatically sends a message to the consumer in a message cadence that is relevant to that individual consumer. The idea is to capture more than the store’s fair share of fill-ups. Frictionless engagement has a huge impact on revenue. “We do see that every time we remove the barrier, we compel more people to purchase more. This customer-focused approach marketing strategy and programs related to it are all about the impact the brand can make on sales,” noted Robbins. CSN Andrew Robbins is the president and co-founder of Paytronix Systems Inc., a SaaS company that specializes in helping brands deliver exceptional program impact through frictionless guest experiences — online ordering, loyalty, gift, mobile payment, apps, messaging and more.