Loyalty programs come in all shapes and sizes, and many retailers are finding that successful programs go beyond discounts. In fact, 63% of loyalty program members believe that having a wide range of rewards and offers is the most important aspect of a loyalty program, according to research from Collinson Latitude. That’s why every brand and retailer must tailor its rewards program in ways that benefit both the company and the customer.
Family-owned convenience store retailer Spinx wanted to create a loyalty program that helped to better position its high-quality, premium products — such as fried chicken or health wraps — without diluting the value and equity of the brand with discounts. The company partnered with Excentus, a loyalty marketing and technology solutions provider with a Fuel Rewards offering, to create its first-ever loyalty program, Spinx Xtras.
Instead of offering discounts on convenience store items, the Spinx Xtras program allows members to earn discounts on gas. “Through the Spinx Xtras program we are able to offer customers fuel discounts through in-store item purchases, a market basket discount and payment options by which customers link their loyalty card to their checking account,” said Sandy Turner, Director of Marketing and Advertising for Spinx in an interview with Retail TouchPoints.
“Loyalty is important to our customers and to our business,” she continued. “Loyalty gallons represent a significant percentage of our total company gallons, so we closely monitor item level and overall program performance to ensure that customers continue to engage in a meaningful way.”
Advertisement
Loyalty Programs On The Rise In C-Stores
As larger retailers proactively implement loyalty programs, the convenience store sector is starting to realize the need for providing customers with rewards. Loyalty in convenience stores is still in its infancy, however, according to Brandon Logsdon, President and CEO of Excentus.
The Excentus report also found that the more regularly and routinely consumers can save money, the more likely they are to continue engagement with a brand. Discounts on everyday habits, such as filling up their gas tanks, can win over consumers.
When it comes to convenience store loyalty programs, a 2016 report from Excentus found that consumers ranked gasoline discounts as the most popular rewards program currency. In fact, 65% of consumers surveyed in 2016 said it’s important to earn rewards to save on gas, especially when gas prices rise. “Gas prices rose and fell significantly throughout 2015 and 2016, while membership in the [Excentus] Fuel Rewards program rose from 54% to 59%,” according to the report.
The Spinx Xtras loyalty program has given the retailer a big opportunity to expand its customer base and stay competitive in the c-store sector. “Loyalty has proven to be a very important point of difference between Spinx and our competition,” said Turner.
