New consumer loyalty program might be a jewel of a platform for convenience stores.
By Pat Pape, Contributing Editor
U.S. shoppers are fond of rewards and have approximately 3.3 billion memberships in customer loyalty programs, according to the 2015 Colloquy Loyalty Census.
Research indicates that nearly three-quarters (72%) of Americans would prefer a rewards program that allows them to shop at many stores versus a single brand. Now a new retail loyalty program—dubbed Plenti—seems to address that need.
ExxonMobil, Macy’s, Nationwide, Rite Aid, Direct Energy and AT&T are joining with American Express to launch Plenti, the first U.S.-based coalition loyalty program with well-known brands where consumers can earn and use Plenti points for purchasing a wide range of products, regardless of the payment method consumers choose to use.
As the loyalty program takes hold on a wider scale, observers say Plenti should gain a foothold in the c-store industry, creating loyalty relationships that will benefit both customers and retailers alike.
Plenti is operated by US Loyalty, a division of American Express, which monitors the points, issues rewards and oversees Plenti’s marketing activities. However, shoppers aren’t required to have an AMEX card to participate.
The company currently operates similar rewards programs in Germany, Italy, Poland, India and Mexico, featuring a total of 60 million active customers and both online and brick-and-mortar merchants.
Shoppers can earn points for purchasing a wide range of products, and they may pay for them in any manner they choose, including cash or any credit or debit card. The points are virtual currency, with each point valued at no less than one cent, although some special promotions may make points more valuable.
The premise for using points is straightforward. For example, points accrued for buying jeans at Macy’s can then be used at Rite Aid to buy a candy bar. Eventually, those points could be used at a c-store if the program takes hold in the convenience channel, outside of ExxonMobil locations.
Abeer Bhatia, CEO of US Loyalty, said no single convenience chain has signed up with Plenti, but officials are talking with several potential c-store candidates over the next couple of months, and is hoping to strike a deal soon after.
EXTRA POINTS
Plenti’s main attraction for consumers is the ease of dealing with several major retailers that operate within a single rewards program platform, which offers more ease and efficiency. With Plenti, consumers can use a single loyalty card, rather than having to track various cards, for various retailers.
For a retailer, the program’s main draw is its exclusivity. Only one retailer from a retail industry will be allowed to participate in Plenti. For example, Macy’s, a national department store chain, will be the only department store in the Plenti program.
ExxonMobil is participating as the national fuel retailer, with customers earning Plenti points at Exxon- and Mobil- branded fuel pumps. But they also can earn points inside the convenience stores that carry those brands, if the store chooses to participate in the program.
A majority of convenience stores associated with the ExxonMobil brands will have in-store offers for Plenti members. Thus, all ExxonMobil participants will have the necessary software and hardware in place to distribute points to shopper accounts.
PLENTY OF FUEL
ExxonMobil has never had a proprietary loyalty program. In the past, the company partnered with regional grocers to offer area loyalty programs, but it had never participated in a national loyalty program until joining with Plenti.
“This is the first and only program of its kind in the country, and it will give consumers the opportunity to earn and redeem points on everyday spending, including fuels, convenience store and car wash purchases at participating Exxon- and Mobil-branded stations,” said Christian Flathman, a spokesperson for ExxonMobil. “Consumers will use one rewards card to earn points at multiple sponsors, and the points can then be redeemed at thousands of locations.”
To drive excitement about its new offering, ExxonMobil will promote Plenti with special launch offers. At c-stores with branded pumps, Plenti members can earn 200 points when purchasing 10 or more gallons of fuel in a single transaction or earn 10 times the points for each dollar spent on eligible items inside the convenience store.
“Plenti members who visit a participating Exxon- or Mobil-branded station can earn one point per gallon of fuel purchased, two points for every dollar spent on a car wash, and two points for each dollar spent on eligible items in the convenience store,” Flathman said.
Despite collecting immense amounts of shopping data, the Plenti program has pledged to keep all transaction information private. Macy’s will not know how much fuel a Plenti member pumps at an Exxon location, and Plenti shoppers will be permitted to opt out of marketing offers.
REPLACE OR KEEP
For years, Macy’s, the department store giant, has had its own proprietary loyalty program, Star Rewards, which will continue to be available to customers, alongside Plenti.
“Star Rewards provides great benefits to Macy’s credit card holders and will serve as a complementary program,” said Orlando Veras, director of national media relations for Macy’s Inc. “Rewards members primarily receive service benefits, such as discount passes, shipping offers and surprise savings at the registers, based on their level of spend with Macy’s. As a member of both programs, customers will be able to ‘double earn’ by accumulating Plenti points.”
Department store management believes customers will be attracted to Plenti because it gives them freedom to rack up points at different types of business.
“We think it will resonate because Plenti allows customers to more easily and quickly earn and use points on items they purchase on a regular basis,” said Veras. “From a tank of gasoline to shampoo and even a summer dress, all of these purchases will provide Plenti members the opportunity to earn rewards.”
SIGNING UP
Shoppers may join Plenti online at no charge. In addition to previously mentioned merchants, the Plenti points are available when doing business with Nationwide Insurance, Enterprise Rent-A-Car, National Car Rental, power provider Direct Energy and Hulu.
“We expect that value-conscious customers will want to maximize the opportunity to earn points, and doing so will translate to shopping more exclusively at the retailers that participate in the Plenti program,” Veras said.
Some industry experts have taken a wait-and-see attitude about the fledgling program.
“This will definitely be an interesting initiative,” said Jordan McKee, senior analyst with 451 Research’s Mobility team, a global IT advisory based in Boston. “If there is a big consumer interest, we’ll see more merchants joining. But it all depends on how much value consumers perceive they’ll get out of this. This type of program hasn’t been successful in some other markets, such as Canada.”
Headquartered in New York City, 451 Research is a division of the 451 Group.
But officials from ExxonMobil appear sold on the idea.
“How people interact with brands and technology is changing,” Flathman said. “Today more than ever, consumers expect to be rewarded for their loyalty, and they want maximum flexibility in how and where they use their loyalty rewards.”
