The 2024 NAG Conference opened on day two in Tampa Bay, Fla., with discussions on artificial intelligence (AI) and foodservice marketing.
Erin Del Conte, editor-in-chief of CStore Decisions and conference moderator; Allison Dean, executive director of the National Advisory Group (NAG); and Vernon Young, NAG board chairman, celebrated the 40th anniversary of the conference on day two with initial remarks.
“Our NAG members are a passionate group of small, mid-sized and family-owned convenience store chains that are invested in growing and developing their stores, are concerned about the future, and want to network with other like-minded industry leaders,” said Del Conte.
Applications of AI
“Using AI to Improve the Customer Experience” was led by Jackie Halas, vice president, business technology, Global Partners; Michael Maxwell, senior vice president, technology — dining & c-store, Bounteous; and Abbey Karel, vice president of business development, convenience retailing, Bounteous.
“An estimated $300 billion of incremental enterprise revenue will be created from AI in 2025,” noted Karel.
With the concept hot on everyone’s minds, understanding how AI works, its practical applications and real-world implications is imperative.
Generative AI takes data, parses it, and interprets and communicates that in human language, noted Maxwell. And one of the primary initiatives c-stores can take, he said, is “collecting that data as long as it’s cost effective” to eventually use AI to find the solutions and insights that can be drawn from it.
For smaller chains looking to implement AI, a benefit is that suppliers are already integrating AI-enabled features into their offerings.
“Even if you do nothing, AI is going to be part of your future workforce,” said Halas.
She also noted that retailers can take any win from any other industry and apply it to theirs. Finding success stories and replicating those models do not have to be c-store specific.
Each retailer, however, needs to ask an important question: What is the problem I am trying to solve?
Solving for time, Halas said, is a No. 1 goal for many, as well as better engaging the guest experience. For example, can administrative task hours be reduced with AI?
“The media coverage, availability of the tools and the potential use cases (of AI) are endless, and people are interested, and they see how easy it is to generate content…” said Halas.
That being said, “tracking why you’re doing this and whether it’s successful is key,” Maxwell added.
Customer Segmentation in Food-Based Marketing
Speakers Richard Poye, head of development, Food Trend Think Tank; Denise Jenkins, vice president of marketing, insights and loyalty at United Dairy Farmers (UDF); and Gaurang Maniar, executive director of marketing, The Wills Group/Dash In Food Stores, guided the next session, “Marketing Your Food Offers to Win Against Other Channels.” Kay Segal, founder and president, Business Accelerator Team, moderated the session.
The convenience store industry spends about 1% in sales in marketing, noted Segal. One of the largest foodservice competitors for c-stores, quick-service restaurants (QSR), typically spends even more.
“We have an opportunity to not only market made-to-order (items) but also all other elements of the store, which puts us at a competitive advantage if we use it correctly against QSRs,” Segal continued.
Poye recommended c-store retailers update their customer segmentation practices.
“You need to think about who you will focus on that’s going to drive the most value to your business,” he said.
Poye noted certain guests have untapped potential. Focusing on the guests that have the capacity to be more devoted to the brand, through loyalty, marketing or other avenues, can allow them to become advocates for c-store brands.
Jenkins, too, noted the value of customer segmentation.
“(We need to) change customer behavior and change customer perception of the brand as it pertains to food,” she said.
To do that, UDF asked who it needed to market to and who it needed to create food programs for, as well as what the service aspect will look like.
In doing so, it created six segments of food-focused personas and decided to optimize priority segments while encircling secondary and contingent targets.
The different personas assist UDF in its marketing tactics.
The Wills Group, Maniar noted, is “now in process of collecting all the data … to understand customers and their behaviors to start on the segmentation journey.”
Maniar highlighted the value of having a large marketing team. He has someone managing loyalty, another person overseeing data analytics and others managing different aspects of the chain’s marketing strategy.
The sessions concluded with questions from the audience.
Following, retailer attendees participated in the Retail Leader Exchanges, often considered the heart and soul of NAG. Here, non-competing retailers gathered in groups to discuss open-ended topics.
The 2024 NAG Conference will continue through March 13.
