Convenience stores use loyalty programs, also known as rewards programs, to incentivize customers to shop repeatedly at their stores. Loyalty programs are used not only by c-stores but also by major airlines and retailers across channels.
Originally, loyalty programs at convenience stores consisted of paper punch cards, also known as club cards, where customers received a free product once they bought a certain number of items — such as buy four cups of coffee and get one free. As time went on, many retailers upgraded to loyalty programs that used swipe cards. With the launch of loyalty swipe cards, loyalty programs began allowing customers points based on the dollar amount spent at the store. Customers could then redeem those points for various rewards, like a free hot dog or fountain drink.
Today, many loyalty programs are mobile app based, allowing retailers to personalize the experience by targeting shoppers with offers and rewards that fit a customer’s specific shopping habits. Some loyalty programs even allow customers to turn loyalty points into cash donations for local charities. Others offer cents off gallons of fuel just for being a loyalty member. Many offer birthday deals, random rewards, coupons and special deals exclusively for rewards customers. Still other programs use a tiered system that rewards customers based on how frequently they visit the store, and even letting customers select the rewards they prefer
Gamification is yet another trend for loyalty programs today. As an example, c-store chain Kwik Chek, headquartered in Spicewood, Texas, offered a “100 Days of Giveaways” promotion — which ran from June 1, 2020 through Sept. 8, 2020 — within its mobile app. The promotion gave participants the chance to win a free prize every day — all they had to do was play Kwik Chek’s virtual scratch-and-win game via the app.
For convenience store retailers, one huge benefit of a loyalty program is the ability to collect data on shopper behavior, allowing them to better target customer needs. A quality loyalty programs can also convince shoppers to come to your store versus the competition.
Some programs are tied to beacon technology or geofencing/geotargeting, which helps retailers target customers with offers as they enter the property in the case of beacon technology, or when they are within a certain radius of the store in the case of geofencing/geotargeting.
App-based rewards programs offer customers an easy way to keep track of their visits, points and rewards — all are just a click away on their cell phone. Loyalty programs that only use swipe cards often have an online interface today where customers can view similar information. Many offer both swipe cards or mobile apps to appeal to customers who prefer different types of technology.
Loyalty programs are continuing to evolve in the age of digital disruption. As app-based loyalty programs help c-stores get better at collecting and mining data, the expectation is that personalized loyalty programs will target customers with promotions specific to that person’s needs and preferences. Loyalty programs are expected to become increasingly relevant as the offers and deals become better and better suited to each individual loyalty customer over time.
