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

• Punch Cards • Coffee Club• Hot Dog Club• Slurpee Club• Open to slippage• Open to fraud

04/08/2023 10

C-Store Loyalty History

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

Not your father’s frequent flyer mile

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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

Top of Mind Promotions

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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

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

Leaders in Loyalty Programs

MetroSplash Grocery Loyalty Leaders

MetroSplash Customers – C-Store Leaders

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More Questions

• Nicole Nunn Walker (nnwalker@metrosplash.com)

• www.FuelLinks.com • www.MetroSplash.com• www.Ruttersrewards.com• On Facebook:

http://www.facebook.com/#!/pages/FuelLinks/35864613939?ref=ts