Engineering Loyalty Program Success

Pilot Co. launched a revamped program and app in April 2021 for its myRewards Plus program for drivers.

Keeping it simple, presenting personalized offers and utilizing the newest technology can help create brand superfans

By Tammy Mastroberte

THE EVOLUTION OF loyalty programs in the convenience store space has been phenomenal, moving from physical punch cards where customers could buy 10 cups of coffee and get the 11th free to interactive digital apps featuring coupons, points redemption, fuel savings, and more.

Often, the first step in converting a customer into a loyalty member in today’s retail world is getting that initial app download or sign-up. However, after that is when the real work begins, which includes not only getting them to keep the app on their phone, but also use it with more frequency — ideally spending more money than before they became a member.

“Getting the app in a customer’s phone is a very big thing, but the user only keeps a mobile app if he sees value,” said Saurabh Swarup, general manager at Liquid Barcodes Inc., a marketing technology company in Fairfax, Va. “To make customers see value in your mobile app, it’s about building lasting impressions. Every interaction you have with the consumer has to be meaningful.” money into creating and revamping their loyalty programs because they want to increase the frequency of customer visits, as well as the amount of money being spent each visit. But they also benefit from the data collected through these programs, noted Vikas Mehta, head of sales and operations at Velocity Logic, a rewards platform provider based in Binghamton, N.Y.

“Loyalty programs allow them to engage with their customers, and it opens the door for communication and for understanding what the customer wants,” he noted. “Over the long term, they can learn where they need to go as a company, and what they need to do for their customers. Without this data, it’s more hoping they will come in and buy based on what you offer.”

The biggest change in loyalty during the past five years has been the ability to personalize experiences and offers. Once a customer joins a program, c-store operators can begin to collect data, such as how many times a week a person visits, if they are a gas-only customer, what they purchase when they visit, what products are purchased together in a single visit, etc.

“If a customer identifies themselves every visit through a loyalty program, you can personalize their experience and offers. If I come in five times a week and four times, I get coffee, then coffee is a driver for me and a store can personalize offers around that, as well as what other

Pilot Co.’s myRewards Plus program offers a fully customized customer experience based on the driver type.

customers like me are buying,” said Jeff Hoover, a strategist for convenience store brands at Paytronix, a provider of customer engagement and loyalty solutions.

Customized Experiences

To keep up with all of the capabilities today’s loyalty programs can offer, while meeting the changing needs of customers and keeping them engaged, many c-store operators are continually evolving, revamping and upgrading their loyalty programs and apps.

In April 2021, United Dairy Farmers, based in Cincinnati and operating nearly 200 c-stores across Ohio, Kentucky and Indiana, announced a loyalty program overhaul, moving to the Paytronix rewards platform so that it could tailor promotions to specific guests.

“If you are going to spend the money and support a loyalty program, you have to use the data and your ability to message customers to deliver personalized offers,” said Hoover. “You can target a customer who comes for gas but doesn’t go in the store with an offer, but can get a lot more sophisticated with segmentation and artificial intelligence to optimize personal offers.”

Pilot Co., headquartered in Knoxville, Tenn., with a network of more than 1,000 retail and fueling locations, also launched a revamped program and app in April 2021 for its myRewards Plus program for drivers. The chain still offers its legacy card program, but now there is “a mobile-friendly way to earn more points, save more money and get assistance with tools like trip planning, mobile fueling, shower and parking reservations,” said Steven Root, Pilot’s director of loyalty.

The chain added a permanent tiered points program for professional drivers, so they can earn more points faster. They begin earning four points per gallon after only six fueling fills, and can redeem their points for food, drinks and supplies. The program also offers a fully customized customer experience based on the driver type, so a professional truck driver profile is different than a regular automobile driver in the app, Root pointed out. They can also switch profiles as needed; for example, an RV profile if they need to find RV-friendly locations.

“Once inside the app, guests are delivered tailored features and rewards that matter to their experience and needs,” he explained, noting that professional drivers are able to earn points with tiered rewards, earn free showers with “Shower Power,” and have access to deals on truck supplies because these rewards would be the most relevant to them.

ExxonMobil Corp. is another company evolving its loyalty program over time to fit customer needs, including integrating payment and loyalty together in its Mobil Rewards+ app, and introducing the Frequent Filler bonus points program for those who drive a lot of miles.

“If you are going to spend the money and support a loyalty program, you have to use the data and your ability to message customers to deliver personalized offers.”

— Jeff Hoover, Paytronix

“We’ve ensured that our offer has evolved with customer demands,” said Yan Côté, U.S. marketing communications manager for ExxonMobil, based in Irving, Texas. “For Frequent Filler, whether you’re a rideshare driver or just a long commuter, if you fill up with over 100 gallons a month, you can earn Frequent Filler bonus points for savings that add up later. Once you qualify, you will earn an extra point on fuel and two extra points on convenience store purchases on qualifying purchases of Synergy fuel and eligible c-store items at Exxon and Mobil stations.”

Additionally, ExxonMobil has launched innovative technology partnerships to allow for faster and more convenient ways to pay using QR codes at the pump, NFC tags at the payment terminal, and Alexa, Pay for Gas.

Creating Superfans

When creating and launching a loyalty program, c-store operators must consider what the customer is looking for, how they can keep them engaged, and how they can make the program simple enough for customers to understand and use.

Simply launching a loyalty program isn’t enough if the goal is to create more visits and ultimately increase the bottom line. For that, c-stores need to create superfans who continue to come back and engage — choosing their store over others again and again.

“It’s important to put the guest and their needs first in order to create a loyalty program that is easy to use with features and perks that matter,” said Root. “Retailers should take the time to understand the guest’s journey and have a clearly defined purpose with goals before launching. For Pilot, it’s important that our loyalty program is achievable, engages our guests, and delivers the greatest value to more of our guests.”

One of the ways to engage customers in a mobile app and loyalty program is through gamification, something both Circle K and 7-Eleven Inc. are working toward dialing up, according to Swarup, whose company Liquid Barcodes is also working with Stinker Stores Inc., based in Boise, Idaho, and operating 102 locations.

Stinker Stores launched a new app-based loyalty program in June 2021, which includes exclusive discount coupons for members,

The Dos and Don’ts of Loyalty Programs

Whether launching a brand-new loyalty program or reimaging an existing one, here are some of the biggest pitfalls to avoid, as well as the must-haves to include:

1. DON’T Launch & Leave

A loyalty program has to be maintained and evolved, and that includes buy-in from corporate, operations and marketing to keep it going. It should be part of a “central marketing message,” according to Jeff Hoover, a strategist for convenience store brands at Paytronix, a provider of customer engagement and loyalty solutions. “Loyalty is the layer that should be involved with all your marketing communications,” he said.

2. DON’T Make It Too Complex

Simplification is key when it comes to loyalty programs because when it gets too complicated, it’s not only difficult for customers to understand and use, but it also becomes difficult for employees to explain it to customers as well. “Keep it simple and focus on the main things — taking advantage of what you do well, like coffee or foodservice. Then, you can start learning and adapting.” said Vikas Mehta, head of sales and operations at Velocity Logic, a rewards platform provider based in Binghamton, N.Y.

3. DO Make It Simple to Join

If joining a loyalty program is complicated or takes a lot of time, odds are consumers won’t do it. Be sure to make it simple to sign up and start participating. “You need a simple process to get customers registered, even partially at first,” said Mehta. “At BP, if a customer isn’t recognized at the pump, it prompts them to sign up for the program with a text to join.”

4. DO Think Outside the Box

Working with manufacturers and community partners on giveaways, promotions and non-traditional loyalty offers will keep customers interested and participating. “Build those relationships with manufacturers to get funded offers and other unique options that are not traditional c-store rewards,” said Mehta. “You have to think about partnerships and where else you can take the program. Find other complementary brands to make what you offer more valuable, and acquire new customers.”

5. DO Get Personal

Offering coupons and promotions is an important part of a loyalty program, but when you can target those promotions to the needs and wants of a specific customer, it takes it to another level. Today’s technology can make this happen. “Consumers look for loyalty programs that offer ways to save money with personalized rewards and that make it more convenient to do business with you,” said Steven Root, director of loyalty for Pilot Co.

“For Pilot, it’s important that our loyalty program is achievable, engages our guests, and delivers the greatest value to more of our guests.”

— Steven Root, Pilot Co.

as well as daily and weekly games that offer members the opportunity to win free products or coupon savings.

“Our IT department did extensive research on a loyalty program that would provide our customers with savings, fun engagement, and deliver a point of difference for us as a retailer,” said William J. Russell, director of operations for Stinker Stores.

Once customers download the app, they are rewarded instantly with either a free coffee or a free fountain drink. The games include spinning a rewards wheel to try to win a free candy bar or other prize. “This acts as both a customer appreciation tool and also allows vendors an opportunity to sample their products and increase their own brands’ traction,” Russell noted.

Offering customers “an unearned benefit,” such as the free coffee or fountain drink when downloading the app at Stinker Stores, is a great way to engage customers right from the start and impress them so that they keep coming back, said Mehta.

And although carrying a physical punch card for a coffee club or fountain beverage club has gone by the wayside, many convenience retailers have incorporated this club feature into their mobile apps because it’s still something that is relevant to customers.

“If you have a club, it’s a reason for customers to come in if some of your promotions don’t work as well,” Mehta pointed out.

At Stinker Stores, an in-app stamp card replaced its manual punch cards and now, it’s all tracked in the consumer’s app for coffee, fountain, doughnut and energy drink purchases. Building on the club model, another option is to create monthly subscriptions for beverages or car washes, where consumers are billed a flat fee that is renewed every 30 days. This allows subscribers to get a certain number of car washes, fountain drinks or coffee each month, although some retailers choose to offer unlimited subscriptions, according to Swarup.

Subscriptions not only drive recurring revenue for the retailer, but also offer value to customers and gives them a reason to keep coming back to that site, he explained, noting that his company works with Circle K in the United States and Canada on a car wash subscription program.

“The retailer knows in the beginning of the month how many customers they have and what the revenue is for that month, and knowing customers will visit for their beverage or car wash, and they will probably pick up something else from the store as well,” Swarup said. “You keep their card on file and it gets renewed every 30 days, just like Netflix.”

Some retailers offer both unlimited beverages for a higher monthly subscription price or one beverage per day as a lower cost option. These subscriptions can be executed either through a separate app, which is what Circle K does in the U.S., or they can be incorporated into an existing app, which is how it’s done at Circle K Canada.

“Typically for a car wash customer, they might visit six or seven times per year. But with the subscription plan that allows them one wash per day, or 30 per month, at $29.99, we see on average they will come four or five times a month instead,” Swarup said, noting that customers see the value and the retailer is getting them onsite more often than before the subscription.

“A single car wash might be $10 or $12, so for $29.99 customers see the value. They will drive to the location with their car wash subscription — or beverage subscription — rather than go to another store, and then will often get fuel and pick up something else in-store,” he said.

Overall, consumers are looking for personalized and meaningful offers they can use in their daily life. This can go beyond just discounts and promotions on items in the c-store.

“We work with ampm in California, and they have partnered with outside brands to offer loyalty members discounts on events, or even a sweepstakes to win NFL gear,” said Velocity Logic’s Mehta. “They continue to do things to drive that engagement and more spend and frequency.”

The ampm chain also uses gamification through a lottery scratch game. A customer can only get an entry if they spend money in-store. The engagement rate is very high on this program. CSN