4 Types of Loyalty Programs for the Fuel & Convenience Sector

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Fuel and Convenience loyalty programs

4 Types of Loyalty Programs for the Fuel & Convenience Sector

4 Types of Loyalty Programs for the Fuel & Convenience Sector
 
Loyalty programs can be a wonderful way to ensure customer satisfaction as well as return custom. As more and more businesses try to build relationships with consumers, loyalty programs are proving to be a great way to start.
 
In order to have a successful program, an organisation must actively engage with their customer base.
 
The loyalty program brand established must recognise the needs and wants of consumers, in order to be successful.
 
Businesses in the fuel and convenience sector need to evaluate the size and nature of their organisation to choose the right strategy for them. Loyalty programs can be very lucrative with research showing that 89% of c-store customers participate in loyalty programs.
 
Below we are going to outline four basic types of loyalty programs that companies can implement for immediate results.
 
Points Strategy
Point-based loyalty programs are becoming increasingly popular in business as a method of ensuring repeat custom. In return for demographic information, a customer receives a card with a unique barcode or identity number through which to earn points.
 
Points can also be collected on integrated loyalty systems such as apps or online. Customers are afforded the opportunity to earn points based on purchases made instore or online. Points function as a currency within the brand and allow customers to use points earned against other transactions.
 
Retaining customers is key to points based strategies as it costs 6-9 times more to get a new customer than to keep one!
Promotions play a big role in points strategy loyalty programs.
 
Offering double or triple points can increase spending. Promotions can also be targeted at customer satisfaction, for example, increased points on a customer’s birthday. This type of loyalty programme suits businesses that have short but frequent purchases.
 
Gamification Strategy
Gamification is a new phenomenon in business due to technological advancements as well as the rise in widespread access to technology.
 
It is a combination of gaming incentive, loyalty concepts and personal data that function to keep a customer engaged with the program. This is a very effective mode of loyalty program.
 
Gaming has proven itself to have strong influences on behaviour as well as being an efficient way to collect data. This strategy usually occurs on integrated loyalty systems such as within apps or online. This results in an easily accessible mode of loyalty system.
 
This strategy is best suited to a large customer-centric brand that can engage fully with the wants and needs of customers. It requires a thorough understanding of customer’s expectations in order to distinguish themselves from competitors. The prizes for the game should align with the wants of your target audience.
 
Reward Partnership Strategy
This strategy relies on relationships between businesses by offering customers discounts with associated brands. Once again, customers need a comprehensive understanding of their customer’s wants, as the brands a company partners with must be relevant.
 
Having a loyal customer base can contribute almost 40% of turnover, so putting resources into tailoring experiences for customers is worth your while.
 
This is a great fuel loyalty program specifically as it broadens the potential of a company by incorporating more services. It can also help further your business by creating entrepreneurial links between companies.
 
Tiered Loyalty strategy
This system relies on repeat purchases as well as purchases of higher value. The consumer decides on what level to engage with the reward system. Basic participation will result in minimal rewards etc. Tiers encourage a customer to try to reach the next level within the rewards system.
 
By providing a goal for the consumer, you provide an incentive for loyalty. This sense of achievement that follows from breaking through to the next tier encourages repeat custom.
 
This strategy works best for businesses with high-value products and brand loyalty. It creates an image of exclusivity from other brands, which differentiates you from another provider.
 
It also suits companies who understand their customer base as levels within a system allow for the personalisation of correspondence.
 
Businesses in the fuel and convenience sector can reap enormous rewards by implanting loyalty programs.
 
Through the collection of consumer data, an increase in repeat custom, and an increase in trust between business and consumer, loyalty programs benefit both parties involved.
 
By retaining customers, an enterprise can grow and expand much faster than competitors! The implementation of loyalty programs provide this room for growth.

Read more https://www.azpiral.com/sector/fuel-and-convenience/

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