In today’s ultra-competitive fuel retail landscape, convenience store operators face a tough balancing act: driving more volume at the pump while preserving tight margins. Looking for the most effective way to tip the scales in your favor? A well-executed loyalty program that ties discounts at the pump to customer engagement may be what you need to drive sales.
Fuel discounts delivered through loyalty programs aren’t just about saving customers a few cents. They are proven drivers of repeat visits, bigger basket sizes and brand stickiness. More importantly, when strategically integrated into your business, they can directly increase fuel sales.
Here are three proven ways convenience stores can use loyalty programs to sell more gasoline, without cutting into profits.
Reward In-Store Spending with Fuel Discounts. Remember the golden rule: start inside the store if you want more gallons sold. Offering cents-per-gallon discounts tied to in-store purchases is one of the most effective ways to increase both fuel volume and inside sales. It creates a reciprocal relationship — spend more inside, save more outside.
An example strategy: “Spend $15 on qualifying merchandise, earn 10 cents off per gallon.” Grocery chains have employed this strategy for years. When tied to popular items like snacks, beverages or prepared foods, these promotions encourage larger baskets and drive more traffic to the forecourt.
Implementation tip: Promote current offers using digital signage and mobile app notifications. Update rewards frequently to keep customers engaged and returning.
Use Tiered Rewards to Build Pumping Habits. Tiered fuel discounts are designed to reward loyalty over time, and more importantly, they work. By structuring fuel rewards based on the number of visits or gallons purchased, convenience stores can increase customer frequency and lifetime value.
A simple model might look like:
- Level 1: Fill up twice a month to earn five cents off per gallon.
- Level 2: Fill up four times to earn 10 cents off per gallon.
- Level 3: Fill up six times or more to earn 15 cents off per gallon.
This approach turns occasional customers into loyal regulars, especially if the rewards reset monthly or quarterly.
Implementation tip: Clearly show customers their progress through app notifications, receipts or digital pump screens. Transparency drives participation.
Integrate Fuel Rewards with Partner Retailers. Consider a cross-promotional partnership if your store is near a grocery chain, pharmacy or quick-service restaurant (QSR). Customers earn fuel discounts at your location by shopping at partner retailers, creating an incentive loop that benefits both businesses.
This can be especially powerful if your store is part of a regional or national brand with loyalty infrastructure already in place. Even smaller operators can leverage partnerships with local businesses to drive shared customer value.
Implementation tip: Choose partners with overlapping customer bases and structure promotions seasonally so you can appeal to core customers at key times throughout the year.
Fuel discount loyalty programs are more than marketing; they are strategic business tools. When used effectively, they help convenience store owners increase fuel volume, drive in-store revenue and stay top-of-mind in a highly competitive marketplace.
Whether you’re an independent operator or part of a larger network, loyalty is no longer optional. It’s a growth engine waiting to be optimized. Furthermore, fuel rewards consistently rank among consumers’ most valued loyalty benefits. Here’s why:
- Instant Gratification: Savings show up immediately at the pump. No waiting and no confusion.
- Perceived Value: Even small discounts feel meaningful when applied to a full tank.
- Control and Transparency: Customers like knowing how their purchases translate to fuel savings.
- Habit Formation: This is perhaps one of the most overlooked and under-appreciated strategies. Regular discounts encourage brand preference and route planning around participating stations. They can change how and where customers decide to shop. Once you can engage customers in your fuel discount program, your competitors must work twice as hard to win them over.
- Digital Convenience: App-based rewards programs make it easy to track savings and access deals on the go.
Customers are already sold on the value of fuel rewards. The opportunity lies in building a program that keeps them coming back to your pumps.
Elie Y. Katz is the CEO and president of National Retail Solutions (NRS).
