Customer loyalty and rewards programs have become increasingly popular, specifically in the fuel and convenience sector, because of the competitive nature of the business. Brand loyalty is important in an aggressive market, and the best way to ensure return custom is a loyalty scheme.
The best loyalty programs adapt to the needs of their customers. Below we are going to look at three case studies of the best gas loyalty schemes to see how they work, and why they work so well.
Circle K (Formerly Topaz)
In 2013, the fuel market predicted a rapid and substantial decline which was going to lead to Topaz losing market share. Topaz made the smart decision to save their business by building relationships with their customers. Topaz aimed to build an engaging brand identity which begins with understanding your customers.
Their overall goal was to retain market share. The strategy that Topaz opted for was gamification. Their main goal with the initiative was to increase customer retention, as well as increasing the average spend instore.
How it works
Gamification combines gaming incentive with loyalty initiatives and collects personal data to keep a customer engaged. In order for gamification to be successful, Topaz needed an integrated system that would support it for their loyalty strategy. Their program ‘Play or Park’ is cloud-based and the points are calculated based on instore purchases.
The more points a customer collects, the more they can enter a draw to win a prize. A customer has the option each month to ‘play’ their points by entering the draw, or to ‘park’ them and save them till the next draw.
The results of Topaz’s implementation of a gas loyalty program spoke volumes about the importance of customer loyalty. The loyalty program has 389,241 active members in the Republic of Ireland.
23% of people switched to filling up at Topaz after the launch of the program and a further 26% of customers fill up only at Topaz.
As a result of the customer rewards program, Topaz saw an increase in customer retention and in new custom.
BP Driver Rewards
BP sought to tailor their fuel loyalty program to their customers through customer feedback. This lead to the simplification of their reward program. It is split into three tiers so customers can engage in a way that suits them.
BP have explained that customer feedback played an important role in the advancement of their program, leading to the simplification of having one card for both payment and loyalty program.
How it works
BP have chosen a points strategy. Customers can link their credit cards to their BP cards in order to make reward savings easier. There are three options for BP customers: BP with Visa, BP with credit card or BP rewards loyalty card.
In the first instance, for the first 90 days customers get up to 25 cents off their gallon for every $100 spent on their credit card anywhere that isn’t a non-BP gas station. After the 90 days, customers get the same savings but only for every $100 spent at BP, as well as other savings.
BP credit card with driver rewards receive the same 90-day treatment as above but after the 90 days get 10 cents off every gallon. The last option, the drivers rewards card is unique as it only involves a customer putting their phone number in at the pump to receive rewards. All three options automatically track fuel rewards so that customers get the most out of their experience at BP.
The aim of BP was to increase customer retention as well as increasing the number of visits per customer to BP locations. Their most active members are using the loyalty program four times a month which is yielding a considerable reward for the customer.
BP loyalty program ranked second in the top national loyalty program, behind shell in the US, as well as having the strongest ratio of total responses to adoption per station.
As noted above Shell currently are the top loyalty program for fuel loyalty programs. Fuel Rewards began in 2009 in response to a successful brand partnership with Kroger supermarkets. It was obvious that the relationship was beneficial for both parties.
This lead to recognising that the prospect of making a saving on fuel motivated consumers to change their behaviour. Recently the company has updated the loyalty program with the name “Instant Gold Status”. Shell used TV advertising to get people engaging with their new program.
How it works
Shell have also chosen a points strategy. Instant Gold Status came about in response to customers demanding more rewards. It gives members an automatic 5% discount on every purchase in every store, nationwide. The only stipulation is that a customer visits a shell station 6 six at least in a 90 day period of time. There is an app available, for people who lose or dislike physical cards, where customers can track their balance.
Shell found that bombarding consumers with information was unhelpful and that having a simple reward and instant reward is what got people involved. Integration with mobile devices also increased the likelihood of consumers getting involved.
Shell has a 5-star rated mobile app, as it ensures that the customers experience is paramount. Shell had a whopping 27.4% response rate with customers who hear about the loyalty program.
Download our in-depth Circle K case study for more..https://www.azpiral.com/topaz-energy-play-or-park-case-study/