With prices on the rise and customers more value focused than ever, c-stores are increasingly turning to their loyalty programs as a key tool for customer promotions, shopper insights, engagement and retention. But there’s still work to be done.
“The average number of loyalty program memberships held by consumers continues to rise, yet the number of active memberships has barely budged,” said Mike Templeton, partner with c-store advisory firm NexChapter. “This tells me customers are open to trying something new, but many offerings miss the mark.”
To best serve customers, Templeton encouraged c-store retailers to focus on gaining more insight about their current shopper base.
“Leveraging a loyalty program is the easiest path to identifying customers,” Templeton said. “When you know more about what’s making your business successful you can align all your other activities around that. Retailers who can balance their desire for depths of data with the ease of use and relevance of a program’s offering will be the ones who succeed in growing active customer relationships.”
EG America (EGA), which has more than 1,500 stores across 30 states, recently overhauled its loyalty program, keeping the customer at the center.
“We recognized that we needed to shift from what was primarily a fuel discount program to more of a holistic solution that engaged customers across all of our offerings,” said Sorin Hilgen, group chief digital officer & U.S. CIO for EGA.
The chain evolved its SmartPay program into its revamped SmartRewards program. Expanding on the SmartPay framework allowed EGA to seamlessly transition its existing customers to the new program.
A big focus of the evolution was lowering the barrier to entry for loyalty members while ensuring the reward structure was also simple and easy to understand. Previously, its banking ACH-type model required upfront banking information. Now, customers just enter their phone number and they’re part of the program. Once registered, SmartRewards customers receive one point for every dollar they spend inside the store or for every fuel gallon purchased.
“Once they hit that 25-point mark, they can take the 25 points and convert them to $1 that they can use either in the store on whatever they want or at the pump. And, obviously, they can continue to earn those points and stack them to be able to get even more discounts and savings,” Hilgen said
EGA also works with suppliers and partners to offer accelerators for faster point accumulation. For example, when purchasing a particular product, customers might earn double points.
The company is also leveraging real-time data analytics and AI, which allows it to provide hyper-personalized offerings.
“It’s really understanding the behavior of the customer, understanding the preferences of the customer, and then providing those offers that are relevant to the customer themselves,” Hilgen said.
The company announced the relaunch at the end of March. “We’re seeing our signups right now are really surpassing our projections by a very large amount,” Hilgen said, adding that reward stacking is emerging as a key industry trend. “We’re looking at new ways to let customers stack even more.”
“SmartRewards is becoming central to how we build meaningful daily connections with our customers,” Hilgen added. “I think the biggest driver of impact will be that hyper personalization. We’ve moved beyond the generic promotions and broad segments to now deliver more tailored experiences …that feel individually crafted; whether it’s providing a favorite snack suggestion, a time-sensitive fuel discount or a custom reward based on those shopping habits, we want every interaction to feel relevant and valuable.”
EGA’s goal is to be part of customers’ routines in a way that makes them feel seen, understood and appreciated every day, he added.
Mobile can play a key role in that experience as the first touch point with a customer.
“It’s a way that allows us to communicate with them on a personal level and provide surprise-and-delight moments for them. It’s a way for us to meet them wherever they are,” Hilgen said.
Together, the app and loyalty program form what Hilgen calls EGA’s “digital front door” — a gateway to a connected, consistent and personalized customer journey.
Other retailers are investing similarly.
“Loyalty and mobile apps are competitive areas, with most retailers offering them,” said Fidaa Mohrez, senior director of operational systems, H&S Energy Group, which operates 287 c-stores in California, Nevada and Oregon under the Power Market, Pinnacle 365 and ExtraMile banners. Like EGA, H&S Energy is focused on boosting shopper engagement through continuous engagement and tailored offers.
“We’ve seen a notable increase in engagement, and we’re leveraging this to give customers compelling reasons to visit our stores regularly,” Mohrez said. “Besides engagement, we’re also focusing on subscription and delivery services.”
H&S Energy operates 70 car washes, and its car wash subscription program has seen substantial growth.
“We’re working to integrate delivery with our loyalty program, offering a seamless, all-in-one solution that ensures customer satisfaction and loyalty,” Mohrez said.
RaceTrac launched its revamped loyalty mobile app in 2024 “to create a more personalized experience and frictionless experience,” said Tyler Grubbs, executive director of digital & store technology for RaceTrac, which operates 592 RaceTrac and 241 RaceWay sites in 14 states, as well as 1,066 Gulf locations. “We have seen substantial growth in new loyalty members as well as monthly active users post launch.”
At Parker’s Kitchen, which operates 100 c-stores in Georgia and South Carolina, VP of IT Scott Smith noted that an ongoing collaboration with the chain’s marketing team around loyalty has been “fantastic” and has helped him stretch beyond a tech focus. “They’re constantly pushing the boundaries of our existing programs, enhancing mobile features and integrating more gamification,” Smith said. “Importantly, they emphasize building emotional connections beyond just transactional rewards, deepening relationships with our customers and continually enhancing their overall experience.”
Looking ahead, Hilgen expects to see more loyalty partnerships modeled after those in the airline and hotel industries that create strategic value for the rewards members.
Templeton agreed he sees partnerships playing a bigger role in loyalty programs going forward. “If a retailer is going to have a program of choice amongst its customers, they must find opportunities to keep it top of mind,” he said. “Connecting a loyalty program with other consumer activities or linking to related and relevant programs is a great way to elevate the use and consideration of a retailer’s loyalty offering.”
