Bring Your Customers In From the Pump

Pay-at-the-pump technology was a game changer for the gas station and convenience store industry. Because of this advancement, today’s average fuel consumer only has to spend about five minutes filling their tank and paying at the pump, and never has to wait in a line or walk into a building. While this technology has enhanced the convenience factor that consumers want and increased fuel sales, it has also become a challenge to maintaining healthy in-store traffic and purchases.

In the beginning, the huge profit from gas sales made in-store purchases nearly irrelevant. As big box retailers began to dominate and margins are cut, bringing customers inside the store for an additional purchase became a priority.

With every gas station owner or operator facing this same challenge, some have found success in various efforts to attract gas customers to purchase another item in the store. Still, some c-store owners have even found drawbacks to the different strategies and tools used to gain in-store sales from forecourt customers.

Cash Gas Discounts

Some gas stations, like Latitudes in Albuquerque, New Mexico, have implemented special discounts on gas prices for their customers who come inside the store to pay in cash.¹

According to a study by Cardtronics, cash transactions still make up 63% of all convenience store purchases.³ Also, a report by NACS says that 23% of surveyed gas consumers primarily used cash to pay for their fuel. An added discount for cash fuel purchases could greatly increase in-store traffic and sales. You’ll even boost profits by saving money on credit and debit card processing. With an ATM in your store, you’ll gain additional income on these cash purchases from your surcharge revenue.

Create a Positive In-Store Experience

If your customers always have a pleasant experience inside your convenience store, they are far more likely to come in. Making your c-store an enjoyable place where consumers can always find what they want is a great way to attract people away from the gas pump and inside to make another purchase.

When considering your customers’ experiences in the store, make sure that you are not creating an environment that could actually repel them. Try to avoid loud music and obnoxious or cluttered signage. Your store should be well organized and clean to allow consumers to find what they want. Also, ensure that no matter the daypart, customers can get what they need and check out in a speedy fashion. The goal is to reinforce convenience when a customer does decide to bring their business inside.

Take Advantage of Pump Advertising

It’s not so easy to grab a customer’s attention in today’s world of constant communication. We are all bombarded with verbal and visual stimuli at all times and for many businesses, fighting through the noise to be heard or seen is tough.

Although fuel consumers are often in a hurry to pump their gas and go, they are quite “captive” in the few minutes they are at the pump. With attractive and relevant advertising in pump toppers or decals, you have the chance to bring your customers inside the c-store for at least one more purchase.

When implementing pump promotions, please keep in mind that cluttered and inconsistent communications will likely hurt your efforts more than they will help. Make sure that whatever you are posting at the pump is clear, simple, and appealing. Don’t leave expired deals or tattered signage up at the pump to avoid any confusion or distraction. With just the right messaging in the forecourt, you have a great opportunity to convince your consumers that they might just need that extra soda or baked snack they weren’t necessarily considering before.

Some companies have even begun to utilize televisions that are installed in the gas pump to facilitate their advertising. With these small televisions, the gas station can not only display a number of image based advertisements on screen, they can also play video. Although this technology is still relatively new and upgrades can be pricey, the doors that it opens to increased revenue and a better customer experience may be worth the investment.

Try a Loyalty Program

Consumers love to be rewarded for the purchases they make. By providing your gas customers with incentive to buy more products in-store, you can keep them coming back for larger purchases time and time again. Consider pairing gasoline and food or beverage purchases to offer a discount of some kind. You could even consider gasoline discounts for customers who have made a certain amount of purchases at your store.

As always, it’s important to keep in mind that every business is unique and the key consumer at each one is different. What has helped other gas station owners boost their in-store profits will not necessarily benefit your own business. The first step to success is understanding your core customers and their habits. Once you’ve determined who they are, you can understand why they buy and what may encourage them to buy more. Don’t miss a chance to build your business by ignoring what your gas consumers want.

One day, technology could allow us to make all of our purchases right at the pump. There are even some pumps already being used that facilitate this type of transaction for certain products (like lottery tickets!)⁴. Until this becomes the norm, keep experimenting to figure out what will help you keep your customers inside your c-store.

References

Bring Your Customers In From the Pump

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