Technology
The evolution of c-stores: How 3rd party apps are adapting to changing customer needs
By providing concise messaging around engagement, c-stores can enable customers to act on their own so that clerks can focus on checkout.
February 1, 2022 by Brian Jefferson — SVP & GM Payments and Loyalty, PDI Marketing Cloud Solutions, PDI Software
You can't order a tank of gas from your living room or have a car wash delivered to your driveway.
Such is the unique nature of traditional gas station convenience retail; the main purchases must be made in person. At the same time, the supplementary purchases at convenience locations don't create enough demand as of yet to generate a high enough ROI to justify the expense involved in launching a robust online order and delivery system.
Even at the height of the pandemic, consumers didn't show a driving need to have snacks, sodas or lottery tickets dropped off at their homes. The vast majority of online and delivery purchasing still centers around those convenience operators that offer a prepared food delivery business.
In addition to the integration requirements that make a digital order system challenging, the operational structure of a c-store doesn't naturally lend itself to the online model. While grocery stores have the personnel to pick items for digital orders, pack them and deliver them curbside, many c-stores tend to be manned by one or two employees at a time. As such, their focus needs to be on checking out customers.
As a result, digital evolution has taken a different form for c-stores. While the frenzy around mobile order and delivery digital capabilities ramped up for brick and mortar stores, convenience retailers have done their due diligence around what it takes to effectively enter that space — and more importantly, what it takes to generate a true ROI.
Consequently, many convenience operators chose not to dive into complete infrastructure overhauls, but instead to update third-party apps with incremental capabilities.
Contactless payment and promo
The most widespread use of third-party apps for c-stores has centered around providing consumers a way to pay for gas and in-store purchases using a contactless method of payment.
Though consumers continue to need to buy gas and supplementary products in person at convenience retail locations, the imperative to do so safely and securely continues to drive digital integration.
In addition, third-party apps have been highly effective in enabling communication between c-stores and customers in terms of displaying gas prices, advertising amenities or promoting offerings like car washes or coffee service.
Finally, integrated apps have enabled the use of a full range of digital wallets and loyalty programs so that customers can proactively manage their store interactions.
Turnkey self-service capabilities
Recognizing the limited availability of in-store employees to facilitate the operational end of app-based programs, the c-store industry has maximized technology that allows customers to engage easily on their own.
Digital initiatives need to be simple and streamlined, given the very nature of convenience store shopping, where customers want to grab a couple of things and be on their way.
Clear directional aids throughout the store are effective, such as featuring a QR code with easy-to-follow instructions. Posted at the gas pump, a code can offer customers a way to download an app or a text-to-join program on the spot.
By providing concise messaging around engagement, c-stores can enable customers to act on their own so that clerks can focus on checkout.
Of course, from time to time an employee will need to help a customer by walking them through the steps required to enroll in a loyalty program, or perhaps helping them to look up their account balance.
This is where third-party app tools on the retailer side are key. Integrating a simple screen interaction platform at the point of sale or through an employee-accessed tablet, can enable the store personnel to easily guide their customer without stepping away from their primary responsibility for long periods of time.
Personalization, not cannibalization
Prior to the uptick in digital capabilities, promotion within c-stores had remained static, taking the form of a price discount posted on an in-store item, or a coupon that could be peeled off the package and presented at the register.
With this sort of generic approach, however, a convenience retailer is more often than not fueling a reduction in their profit margin by giving discounts to customers who are already in the store with plans to buy the item(s) in the first place. At the same time, no data is collected about that customer — which equates to a missed opportunity to bring them back.
With the digital shift fueled by third-party apps, the retailer-customer relationship is enhanced in both directions. The customer provides information about themselves in order to download and register for the app in exchange for value.
The retailer then has a better view of that customer in terms of what they buy, where they travel, what time they come into the store — their overall purchasing behavior. Using that data, c-stores can offer consumers more personalized promotional content likely to influence future purchases. This cycle represents a valuable feedback loop that hasn't been present in c-stores up to this point.
Digital commerce will undoubtedly continue to grow and evolve for c-store retailers. By maintaining focus on its unique product and service offerings, while being mindful of in-store operational challenges, the industry can build on the growth of its current success.
Brian Jefferson serves as GM of PDI's loyalty and payments solutions within PDI's Consumer Engagement line of business
About Brian Jefferson
Brian serves as General Manager of PDI’s loyalty and payments solutions within PDI’s Consumer Engagement line of business.
Prior to joining PDI, Brian served in several IT solutions delivery project roles for Sabre Holdings, American Airlines and DXC Technology (formerly Electronic Data Systems).
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