How Convenience Store Loyalty Programs Work: What to Know

Members of ​convenience store loyalty programs spend about 12% more than their non-loyalty counterparts.  With the average fuel-selling convenience store serving 1,100 customers per day—and 400,000 per year—we’re talking about a significant uptick in revenue for businesses that roll out successful convenience store loyalty programs. (NACS) 

So, what are these programs and how do they work? Convenience store loyalty programs reward consumers with perks—such as points, discounts, or merchandise—for spending money in your store. The more they spend, the more rewards they get, so it’s a smart way to get people through the door.  

Convenience store loyalty programs benefit stores in other ways too, including these four: 

1. Building customer engagement and brand loyalty. Customers like being rewarded for money they are going to spend anyway. When they are looking to fill up or grab a quick snack, they’ll choose your store over the many other options they have to get those rewards. 
2. Boosting in-store purchases. Loyalty programs incentivize fuel-buying consumers to purchase drinks or food, too.    
3. Increasing Customer Lifetime Value (CLV). Convenience store loyalty programs turn consumers into frequent visitors and repeat buyers who spend more money over time.   
4. Capturing valuable customer data. An app-based convenience store loyalty program enables you to collect data on customer buying behavior, habits, and preferences so you can create highly personalized marketing messages for different segments of your customer base.  

5 Components of Gas Rewards and Gas Points Programs 

One loyalty strategy is to offer gas rewards programs or gas points programs, and these differ slightly from other types of convenience store loyalty programs. Gas rewards programs accrue points based on how much a person spends at the pump, and in some cases, what they spend in the store.

As those points accumulate, consumers earn free items, such as gas or merchandise. In contrast, some convenience store loyalty programs aren’t based on purchase amounts and simply offer discounts and specials.  

Since the price of gas is a sticking point for consumers, gas rewards programs or gas points programs are a powerful incentive. In fact, according to one study, the reason 74% of respondents would become loyalty members is for gas discounts. (CSA)  

As with any convenience store loyalty program, consumers who are members of gas rewards programs are more likely to come to your store when they need gas and spend money in the store, giving their overall CLV a boost. The basics of a gas rewards program include:  

1. Sign up. The registration process—the moment consumers sign up for a gas points program—must be easy and quick, and the incentive to sign up must be strong. For example, some convenience stores offer free bonus points for just signing up. If you can’t get them past this first vital step, it doesn’t matter how amazing your actual gas rewards program is, so make sure you're providing a seamless experience and a reward that's worth their time. 
2. Points. Perks vary among the leading convenience stores. For example, Shell Fuel Rewards offers $0.05 per gallon on every fill-up, whereas Exxon Mobil Rewards+™ offers at least $0.03 per gallon at the fuel pump and $0.02 per dollar spent in-store. As you think about the perks and incentives your gas reward program should offer, compare it with the convenience store loyalty programs offered nearby to either match or exceed their incentives.  
3. A card or an app. When a customer fills up, the card or app that is linked to their credit or debit card captures how much they spent. The benefit of an app is that consumers can track in real-time how many points they’ve accrued, see rewards they’ve earned, and check out personalized promotions or offers.  
4. Tiers. Some gas rewards programs offer different tiers of membership that provide additional or better rewards as you move up a tier. After a certain number of visits, you move into a “premium” membership that offers more points per purchase. For example, Exxon Premium status members earn an additional three bonus points per gallon when they fill up three times a month with eight gallons or more of Synergy Supreme+™ premium gas. 
5. Bonus offers. Some gas points programs are set up so that consumers can earn extra points by taking surveys or referring a friend. Customers can also receive special rewards for birthdays. With the right data and segmentation, you could even send them a free item they purchase often for their birthday to encourage them to visit your store–and hopefully buy more. 
   

Use a Loyalty Program App to Understand Visitor Behavior 

Retaining and gaining new customers requires solid marketing, and at the root of every successful marketing campaign is data. The easiest way to capture data on your customers is through a loyalty app. 

An intuitive loyalty app provides a friction-free user experience, enabling consumers to easily access their accounts, order online, track their points and gas rewards, and redeem items they’ve earned. Your business benefits as well. 

When consumers register for your loyalty program app, you start capturing data that can offer insights into when they visit, the frequency of their visits, what they purchase, and more. That purchase and behavioral data empowers you to segment customers so you can send them highly personalized messages—that are more likely to convert and keep customers coming back. One study found that 78% of consumers are more likely to repeat purchases from brands that offer personalization in their marketing strategies. (Mckinsey & Company) 

You’ll even get insight into microtrends that you can capitalize on. For example, you could easily see an uptick in food purchases after a local baseball game, providing the perfect opportunity to run a promotion on fountain drinks or hot dogs. 

As important, your loyalty app offers you a way to stay connected with customers, providing a direct communication channel you can use to send those personalized messages, special promotions, and birthday wishes to entice them to come to the store. 

3 Convenience Store Loyalty Programs Examples 

If you’re looking for some real-world convenience store loyalty program examples, look no further than some of our own customers that have built strong loyalty programs that provide outstanding user experiences. 

Nebraska’s Pump & Pantry worked with us to develop a brand new “Pumped Up Rewards” program that gained more than 20,000 new customers in the first year alone. Their three-tiered gas rewards program is based on visits, and members can earn cents off future gas purchases with both fuel and food purchases. 

To get more people engaged with its convenience store loyalty program, Break Time partnered with Paytronix Data Insights to create a new tiered approach that rewards customers for visits and spending. Guests move up and maintain a tier the more they visit, and the better their rewards get. As a result, Break Time has seen a 25.6% increase in customer spend. 

Pump N Pantry turned to us when the Pennsylvania-based convenience store wanted more customers to go inside and make additional purchases after they topped off their gas tanks. Now, the convenience store can offer a points-based loyalty program, digital order-ahead capabilities, and a mobile app. After just one year, 6,000 members had joined the program—and they’ve seen online orders jump to 20% of overall sales. Read more about our online ordering capabilities.  

Make Sure You Can Compete  

Local and nationwide chains are going all in on comprehensive convenience store loyalty programs that give consumers more of what they want, offering irresistible incentives like cheaper—or free—gas and food.  

If you want to continue to compete with them, let us help you build an effective loyalty program that leverages your data to offer the types of rewards your customers want and the types of promotions that will keep them coming back. Schedule a demo now.