Looking for New Ways to Drive Profits?
Consider this Creative Loyalty Program. Who among us is not looking for new ways to drive profits? Milo Ritton, President of Superior Petroleum, shared impressive results and insight on an exciting loyalty program the company recently implemented.
Four years ago, Ritton began fuel distribution as a new venture. New to the industry, he had a vision for a loyalty program that integrated a winning business proposition in his community; drove fuel traffic and brand preference for his sites; and didn’t break the bank. “I brought the idea to our BP JSM and he took it up the chain. He thought we had something here and fortunately the execs at BP listened.”
Ritton worked with Metrosplash to implement FuelLinks at his sites, a cents-per-gallon rollback, market basket program with a local grocery store chain. “Free gas truly appeals to everyone,” remarked Ritton.
How does it work?
Consumers shop at the local grocery store and
receive a cents-per-gallon rollback credit. The amount of the credit is based on their total grocery bill. Rollbacks start on grocery purchases as low as $5. Plus, the grocery store can offer promotional specials on products to increase the shopper’s cents-per-gallon rollback. Shoppers receive redemption awards to rollback gas prices anywhere from .01 cent per gallon to upwards of .66 cents per gallon and more.
The grocery store pays Superior Petroleum for the rollback redemption and in turn uses the program as a sales promotional tool for product offers. The consumers then bring the card to Ritton’s BP stations, slide the card through the POS system, and the
rollback price is automatically calculated at the pump.
“It builds real brand loyalty. Now I don’t have to be the first to go down in price or the last to go up. My customers are not as price sensitive when they are getting 13-66 cents off a gallon,” explained Ritton.
Ritton highlights these core fundamentals:
• Don’t pay for it yourself. The grocery store and its suppliers pay the cost of the rollback.
• Make it an all inclusive program.
• Start at a $5.00 price point...that way everyone leaves the store with points. Once they try it, they’re hooked. Plus, it helps the grocery store grow average consumer spend.
• Grocery stores are a good starting point, but the program doesn’t have to end there.
• Involve any local retailer who wants to issue rewards and grow volume (dry cleaners, banks, mortgage brokers, car dealers, etc.).
What kind of results can you expect?
Here’s what Ritton consistently sees when he brings sites on the program:
• Sustained, increased fuel volume of 42 percent on
average.
• Inside sales increase 30 percent on average.
• Brand loyalty increases and price sensitivity
decreases.
• Grocery store volume increases an average
of 11 percent.
• Costs about $11,000 to implement the program per site with a five month ROI payback time.
For more information check out fuellinks.com.