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Loyalty and Digital Offers
in the
C-Store Environment:
Linda Toth
Conexxus Director of Standards
NACS / Conexxus • Convenience & Retail Fueling
• Not for Profit
• Trade Associations
• Conexxus = Technology Arm of NACS
– Educate
– Advocate
– Create Standards
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U.S. Convenience Stores • 154,195 Stores
• 575 B Annually in Sales
• 160 Million transactions a day, every day
(US population = 321 Million)
• 80 % sell motor fuel
• 63% are single-store operators
3 Source: Nielsen TDLinx , NACS State of the Industry Survey of 2015 Data & CSX, LLC
U.S. Convenience Stores • 575B Annual in Sales
– 225 B (inside products) up 6%
– 349 B (fuel)
• Inside Sales (Sales, GP$) – Tobacco (37%, 19%)
– Beer* (12%, 8%)
– Pack Bev (15%, 20%)
– Center Store (10%, 14%)
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*For those stores selling beer Source: Nielsen TDLinx , NACS State of the Industry Survey of 2015 Data & CSX, LLC
U.S. Channel Count Comparison
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Source: NACS Nielsen TDLinx , NACS State of the Industry Survey of 2015 Data & CSX, LLC
C-Stores struggle with paper coupons
6
≠
C-Stores = Promotions
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+ =
Cash
C-Stores = Loyalty Programs
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The Consumer is Changing…
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• Time starved
• Mobile
• Always connected
• Knowledge on demand
• Seeking simplicity in complex world
Personalized Relevant Offers
Increase Sales
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Source: Accenture Personalization Survey Source: Medallion Retail
46% of shoppers said they will
buy more from a retailer that personalizes the shopping
experience
57% of consumers want real-time promotions/offers
Digital Offers/Marketing & Mobile
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Paper Equivalent
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• Early generation of
“Digital Coupon”
• Cool new platform!
• But really – Just paper in
disguise
Remember: C-Stores struggle with paper coupons
Digital Offer Life Cycle
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Issuance
Redemption
Validation
Settlement
Validation to
Limit Fraud
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Digital Offers Ecosystem
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CPG Marketing
Mobile Payment
Processing Application
(MPPA)
Broker/
Aggregator
Loyalty
Host (LFEP)
Acquirer/
Payment Host (PFEP)
Site Level
Above-Site Above-Site
Site Level
Mobile Applications
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• Early Win to Combine:
• Payment Wallet
• Loyalty
• Digital & Targeted
Marketing
Browser Benefits
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Car Wash Code Use Case
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Consumer purchases a
car wash code (for use
now or in the future)
using his mobile device.
Car Wash Code Sequence Flow
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Car Wash Code Sequence Flow (cont.)
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Car Wash Code Sequence Flow (cont.)
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Indoor Use Case
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Consumer enters store and
purchases goods/services
and/or pre-pays for fuel all
through his mobile phone.
Indoor Sequence Flow
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1. User initiates Mobile [Application] selecting payment/loyalty.
2. Identify user location.
3. Optionally, MPPA prompts for fleet data.
4. Loyalty Processing
• MPPA LFEP (above site) OR
• Site System LFEP (site level)
• Interaction with user for optional rewards
5. Payment Authorization
• MPPA PFEP (above site) OR
• Site System PFEP (site level)
Indoor Sequence Flow (continued)
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6. Consumer Fuels
7. Additional Loyalty Processing with LFEP (post fueling
and/or product/transaction based)
8. Complete Payment Processing with PFEP
9. Complete Mobile Transaction (MPPA Site System)
10. Receipt Processing at Site System
• Print At Site System (optional)
• Send to MPPA for use on Mobile [Application]
Identify/Verify User Location
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Conexxus Standards use:
• Single Transaction Authorization Code (STAC)
• Generated either by:
• MPPA
• Site System
• Format examples:
• QR Code (scanning)
• Numeric code (PIN pad or mobile device)
• Depending on format and origination, Mobile [Application]
may need to determine site location to include in the STAC.
Identify User Location
Option 1 – MPA Requests STAC
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Identify User Location
Option 2 – Site System Generates STAC
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Outdoor Use Case
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Consumer pays for fuel
through her mobile
phone (without going in-
store).
Outdoor Sequence Flow
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1. User initiates Mobile [Application] selecting payment/loyalty.
2. Mobile [Application] determines fueling position
3. Optionally MPPA prompts for fleet data
4. Reserve Pump: MPPA Site System
5. Loyalty Processing
• MPPA LFEP (above site) OR
• Site System LFEP (site level)
• Interaction with user for optional rewards
Outdoor Sequence Flow (continued)
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6. Payment Authorization
• MPPA PFEP (above site) OR
• Site System PFEP (site level)
7. Optionally, validate the user is where they think they are
(may occur either before or after payment auth)
8. Price may be adjusted before fueling
9. Optionally, consumer receives message on mobile device to
begin fueling.
10. Consumer fuels.
Outdoor Sequence Flow (continued)
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11. Additional Loyalty Processing (post fueling and/or
product/transaction based)
12. Complete Payment Processing
13. Complete Mobile Transaction (MPPA Site System)
14. Receipt Processing at Site System
• Print At Site System (optional)
• Send to Application via MPPA
Validation of User Location
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Conexxus Standards use:
• Validation code (numeric)
• Verified by:
1. Site System
2. MPPA
Validation of
User
Location
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Receipts
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• Conexxus standards: Site System is responsible for receipts. For above site, the MPPA must provide the
host portion of the receipt lines. • Different countries have different
receipt requirements.
ISO 20022
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Reporting (only) of loyalty/discounts proposed to TG1; extension of repeatable sale items to include: • Item id • product code • additional product code info • original (amount, unit price) • adjusted (amount, unit price) • UOM • quantity
• repeatable price adjustments o program id o promotion reason o amount o unit price o quantity
Success in a C-Store Environment
Increase Revenue
• Easy Acceptance
• Application or Browser
Decrease Expenses
• Life Cycle Management
• Limit Fraud
• Reduce handling fees
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