By John Morris, Dover Fueling Solutions Senior Director, Technology Platform Integration
Our industry is built on the tenet of convenience, but what does that mean? The term isn’t measured or defined in one way by consumers, though there are key elements behind what many consider a convenient experience. According to Numerator, 82% of shoppers rate convenience as extremely or very important, which means it’s just as important to deliver.
With technological, environmental and socio-economical influences evolving, our industry is redefining convenience retail experiences built for today and with the future in mind. One critical component that shouldn’t be overlooked is the fuel dispenser. Nearly 80% of U.S. c-stores sell fuel, and that’s precisely why it’s important to start a convenient journey “at the pump”.
Tech is Widely Accepted for Frictionless Convenience
Digital purchase and delivery mechanisms are in expansive growth. Close to half of consumers find online shopping more convenient than in-store, and we’ve seen c-stores enhance customer experience with online ordering, contactless payment, delivery and curbside pickup. While it’s becoming commonplace to complete a shopping transaction without interacting with an employee, that practice – long around in retail fueling with the advent of outdoor payment terminals and self-service – is in part why c-stores are challenged to bring customers inside. Thankfully, we’re also seeing dispenser advancements and network improvements that are integrating the forecourt and store.
At Dover Fueling Solutions (DFS), we focused on solving this particular challenge with the digital dispenser interface available in DFS Anthem UX™ platform. Our customers who’ve installed the Anthem UX platform are reporting increased in-store and service revenues, fuel upgrades and loyalty program participation. We recently partnered with GRUBBRR – a leading provider in automated self-ordering technology – to deliver at-dispenser ordering on Anthem UX platform through DX Market™ powered by GRUBBRR®. With this solution, c-stores can offer foodservice as well as SKU items on the dispenser screen, enabling customers to simultaneously shop the store and submit orders before they finish fueling.
Convenience is Very Personal
Though customers are adopting reduced face-to-face interaction, they still want personalized experiences. Gone are the days of putting up with promotions that aren’t tailored for you. Something c-stores have long delivered on is local curation. There are around 150,000 c-stores across the U.S., and with that footprint comes the advantage of knowing your neighborhood and creating offerings with locals in mind.
Targeted suggestive selling – already commonplace with dayparting and strategic layouts – is getting a digital overhaul through advanced purchasing applications. We see increased use of these tactics across platforms and throughout our daily interactions, and fueling should be no different. DX Promote™ on Anthem UX platform enables a site to run custom media promotions at the dispenser based on weather, daypart, local activity, inventories and more. We continue to innovate on solutions that enhance customer experience and increase loyalty, helping retailers streamline operations and optimize revenue.
The foundation of the c-store model is providing relevant items where customers are and on their clock. Streamlining between dispenser and c-store enhances the grab-and-go concept and has potential to decrease time spent on site – a common obstacle in getting people in the store. Forbes reports five minutes is the longest that nearly 1/3 of consumers are willing to wait for a meal. While the average quick service restaurant (QSR) wait time is around seven minutes, c-stores clock in at just four. Order-at-the-pump can help further reduce wait time between hanging up the nozzle and receiving food in hand, increasing a customers’ spend without costing them valuable time.
Fuel Dispensers Drive Destination Experiences
While some place short duration at the top of the list, others see convenience as being able to get everything they need, along with a bit of surprise and delight, in one stop. A smaller but well planned store can outperform bigger counterparts in this regard.
In part driven by supply chain disruptions, expansion of fuel offerings and increased electric vehicle (EV) use, fueling customers are recognizing c-stores for more than the gas they provide. Sites are upping their game, implementing high quality foodservice, stocking up on novelty snack and beverage, broadening household and grocery inventory and even providing sit-down areas for rest. One of the fun traits of this industry is the breadth of uniquely creative ideas that come with 60% of c-stores being a one-store operation.
Despite differentiators across stores, what remains consistent is the need for fuel that often acts as a catalyst for stopping. We describe fuel – with its volatile pricing and lower profit margins – as a loss leader. Unlike the low-priced CDs you found in the big box stores of yesterday that lured patrons toward the back where impulse items enticed them along the way, our loss leader is right out in front. That doesn’t have to be a losing strategy. By engaging with customers while they fuel and customizing the experience with opportunities for upsell/cross-sell, you can provide all the right enticements at their fingertips. It doesn’t get more convenient than that.
Fuel Dispensers are Key for Quality Convenient Experiences
Convenience might be defined differently among consumers, but most will agree it does not sacrifice quality of experience. Integration between forecourt and c-store is accelerating with advancements that enable less friction and more personalization for fueling customers. Fuel dispensers are often where the customer journey begins. Though they remain an often under-utilized asset for increasing sale and customer loyalty, the technology exists to maximize their marketing potential. They should be an integral consideration for winning sales strategies across retail fueling sites.
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