loyalty 360 c store presentation (2)
DESCRIPTION
Loyalty 360 Webinar March 2010TRANSCRIPT
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Offering the Convenience Store retail channel a mobile and robust loyalty program
Driving C-Store eLoyalty
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Webinar Topic
• Driving C-Store eLoyalty with the Mobile Consumer Using Digital Media and Rewards
• Build eLoyalty with your mobile consumer by connecting with them on social networks and mobile devices—anywhere and everywhere.
Bring consumers into your store, boosting in-store sales of merchandise and prepared foods by building your brand through targeted electronic promotions, coupons, rewards and through constant consumer contact.
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About the Speaker
• MetroSplash System Group, Inc• Founded in 2003, MetroSplash Systems Group, Inc.
provides a technology platform that enables businesses of all types to implement a supplier-integrated fuel-based consumer reward program (FuelLinks) or to monetize an existing affinity program toward the purchase of fuel.
• The company offers the financial settlement and Loyalty as a Service (LaaS) infrastructure to bridge between merchants (reward issuance) and fuel retailers (redemption).
• MetroSplash is a Dallas based firm
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Agenda
1. C-Store Industry Primer1. C-Store Industry Primer
2. C-Store Loyalty History2. C-Store Loyalty History
3. The New C-Store e-Loyalty3. The New C-Store e-Loyalty
4. Mobile rewards for the motoring public4. Mobile rewards for the motoring public
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The Myths of the Space
• Myth No. 1 is that large oil companies own local convenience stores.– The reality is that only 2 percent of gasoline retail outlets are
owned by large oil companies.
• Myth No. 2 that convenience stores make large profits. – Public believes retailers make a profit of 40 cents a gallon after
expenses when the realty is that the national average for the industry is 12 cents a gallon for cash purchases, and only 3 cents on credit card transactions.
• Myth No. 3 that gasoline retailers are to blame for price spikes and that stores somehow collude to control cyclical price fluctuations.– “Up like a rocket and down like a feather,’”
• NACS ONLINE Oct 2009
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Strength in Numbers*
• 1 in 23 US Dollars is spent in convenience stores
• 4.4% of the country’s $14.3 GDP comes from
convenience stores
• Convenience stores are a destination for more than 160
million Americans every day
• 98% of them shop at a convenience store at least once
per month• The industry serves 58 billion customers every year
*NACS National Association of Convenience Stores 2009 State of the Industry1600 Duke Street Alexandria, VA 22314
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Comparison
• 144,875 c-stores in the US 1 for every 2,100 people• Competing channels have far fewer stores
– Supermarkets (35,394)– Drug Stores ( 37,700)– Mass Dollar stores (19,974)– Mass Merchandise (6,594)– Wholesale Clubs (1,184)
• Convenience stores sell approximately 80 percent of the gasoline purchased in the US each year.
• Who sells the other 20%?
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Blurring of the Channels
A Convenience Truth by Pat Pape NACS Magazine
• Convenience Retailing – a way of connecting with today’s ever challenged customer
• Convenience is Time vs. Money• convenient locations, extended hours
of operation, one-stop shopping, grab-and-go foodservice, variety of merchandise and fast transactions.
• Giant Foods Stores – “Giant to Go” in PA 4,400 sq feet vs. 70,000 sq feet
• Quick serve meals in c-stores vs. fast food
• Self service beverage bars in Drug Stores now (Café’W)
• Drug Stores selling beer and wine
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Leading the Retail Industry
• Beer Sales Nearly 80 percent of convenience stores sell beer,
• Candy Sales• Coffee Sales• Speed of Transaction - Convenience
stores have an unmatched speed of transaction: The average time it takes a customer to walk in, purchase an item and depart is between 3 to 4 minutes. .
• Retailing to the UnBanked• Employee Turnover
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• Punch Cards • Coffee Club• Hot Dog Club• Slurpee Club• Open to slippage• Open to fraud
04/08/2023 10
C-Store Loyalty History
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04/08/2023 11
C-Store Loyalty History
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Not your father’s gas station
Of the 144,875 C-Stores over 90,000 are run by single store operators
The average C-Store sees 1200 plus consumers per day
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Not your father’s frequent flyer mile
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Financ
ial S
ervic
es
Airline
Specia
lty R
etail
Hotel
Gro
cery
Mas
s Mer
chan
t
Gam
ing
Dept.
Store
s
Drug
Store
s
Fuel C
-Sto
re
Resta
uran
t
Car R
enta
l/Cru
iseO
ther
422
277
191161 153
124 106 92 7351
13 10
128
Members in Millions
• SOURCE: Colloquy 2009 Loyalty Census – April 2009
Loyalty Census1.8 Billion Members in US
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C-Store’s know their demographics
The industry's stereotypical customer profile Bubba• Age: 18‐55 years old• Cultural influences: Beer, NASCAR, pick up trucks, • cigarettes, beer, baseball, beef jerky, football, beer, dip, mom,
hunting dogs…• Brand loyalty measured in: a lifetime
1. Drop‐In Daily customer, or the familiar "Bubba" who drops in daily as a break from work
2. The Loyalist Local, who thinks of the stores as the center of the neighborhood
3. The Over‐Stretched Mom, who shops on the way home from work to fill in the gaps
4. The Mobile Professional, who stops in during the commute for coffee and competitively priced gasoline;
5. The Highly Hesitant, who visits for snacks, but otherwise avoids c‐stores
6. The Long‐Distance Driver, who drives for a living and wants familiar brands of gasoline and clean bathrooms
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Skipped a generation – but caught up QUICKLY
Online retailing passed c-store by but MOBILE did NOT
Gen Y & beyond:• Born Between:
– 1977 and 2002
• Age: 7‐32 years old• Cultural influences:
– dot‐com bust, Internet, September 11, mp3, Iraqi War, Paris Hilton, Facebook, Twitter
Brand loyalty measured in: Days
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We trained them well
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The Fuel Reward
• Fuel is to the C-store what the frequent flyer mile is to the Airlines – the loyalty TOKEN of choice– All inclusive – appeals to EVERY demographic
• Instant Gratification• Very Emotional• Very Sticky – has equity• Market basket rewards or Item level rewards
– Store Trends, Product Movements• Provides sales growth – boost sales 9-20%• Levels the playing field vs. the Mega Brands• Provides rich data for analysis – supplier
negotiations
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Rewards and Loyalty
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Mobile with a Mobile Audience
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Per Store/ Per Consumer Dialog
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Mobile and Social
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Power of Loyalty Reporting
Data Behavior TrendsCommon
Language
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With Loyalty Data Comes Knowing
CategoryAnalysis
Profit Analysis
UPCVelocity
Inventory Analysis Store
Analysis
Aggregated ViewsAnd Decision BasedOperations
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FUNDING
BRAND LEVEL
SKU LEVEL
MOBILE CONSUMER
Reward- Loyal Consumer
Merchant-Funded Rewards
PARTNERS
ISSUANCE
ISSUANCE
Supplier- Funded Rewards
CONNECTED and REWARDED Community
Creators
Critics
Collectors
Joiners
Your C-Store
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Host Technology Enables
Redemptions
Reward Issuance
MetroSplash HOST
Re
de
mp
tion
s
Reward Lookup
Supermarket 1
Supermarket 2
Reward Issuance
Redemptions
Redemptions
Reward Lookup
Reward LookupC-Store 1
C-Store 2
C-Store Issuance
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Leaders in Loyalty Programs
MetroSplash Grocery Loyalty Leaders
MetroSplash Customers – C-Store Leaders
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More Questions
• Nicole Nunn Walker ([email protected])
• www.FuelLinks.com • www.MetroSplash.com• www.Ruttersrewards.com• On Facebook:
http://www.facebook.com/#!/pages/FuelLinks/35864613939?ref=ts