When it comes to convenience stores, there is an opportunity for loyalty marketers, according to research released by General Mills Convenience & Foodservice.
The research respondents include 348 convenience store food and beverage shoppers between the ages of 18 and 64 in January and February. What’s more, 382 convenience store food and beverage shoppers in the same age range took part in an online idea-generation exercise to develop an “ideal c-store loyalty program.”
Here are some key takeaways from the research:
89% currently participate in some type of loyalty/reward program across a variety of channels and categories
64% participate in a grocery loyalty program
52% participate in a drugstore/pharmacy loyalty program
35% shoppers participate in a convenience store or gas station loyalty program
“Convenience store shoppers are familiar with loyalty programs from grocery and drug stores, but fewer shoppers participate in c-store loyalty programs,” said Chris Quam, consumer insights manager at General Mills Convenience & Foodservice. “There is definitely an opportunity to expand. In keeping with the speedy nature of a c-store transaction, signup needs to be fast and friction-free. Once shoppers have joined and start participating, they will expect to see the benefits of patronizing the store on a regular basis so rewards need to be kept within reach to maintain their loyalty.”
Respondents indicated their “ideal” c-store loyalty program should focus on three areas:
Incent Trial: An easy signup process and immediate reward encourages shoppers to join. Seconds count in a c-store visit, so making signup as quick as possible is important.
Make it Worthwhile: Shoppers like to see benefits that are easily attainable, without a significant change in their current behavior.
Bring a Smile: Make the program fun! Shoppers appreciate surprises and customized offers. They also look forward to higher reward levels when they spend more in the store.
Points for things they’re already buying
Rewards provided on a regular basis
Regular reminders (through receipts, cashiers, or email) that keep the program top-of-mind
Surprise deals
Personalized offers based on purchase history.
Exclusive rewards for the most dedicated shoppers
Shoppers who participate in a c-store/gas station loyalty program are mostly satisfied, the research shows, but there is an opportunity to increase the percentage of those who are truly passionate about participation (those who are “very satisfied”).
35% say they are “very satisfied” with their c-store/gas station loyalty program
34% say they are “somewhat satisfied”
31% are neutral or “unsatisfied”
As convenience stores work to build loyalty with shoppers, many retailers are exploring or implementing loyalty programs, the research shows.