HOUSTON -- Shell Oil Products US (SOPUS) has announced the year's results for its Shell-branded credit card deck to its wholesale and retail operators. It shared accomplishments including increases in the number of Shell-branded cardholders, brand loyalty values and four new pilot programs. The year concluded with an industry credit card triple rebate offer.
The Shell Platinum Select MasterCard fourth-quarter promotion offered new Shell Platinum Select MasterCard credit cardholders the opportunity to earn triple rebates for 60 days on all Shell gasoline [image-nocss] purchases, the first $100 spent at Jiffy Lube locations per day and everyday purchases. This means that for the first 60 days those new cardholders are earning a rebate of 35 cents per gallon at an average price of $2.35 per gallon when using the Shell Platinum Select MasterCard from Citi Cards for their Shell gasoline purchases.
As of Dec. 1, 2005, halfway through the promotion, the number of Shell Platinum Select MasterCard applications had already matched the number achieved by the previous year's entire promotional period, said the company. Some of that success was attributed to a national advertising campaign that included TV, radio, billboard and Internet marketing and site efforts such as Local Store Marketing direct mail, greeters and a new primary ID banner that increased visibility for passing motorists.
Another Shell-branded card promotion was the second-quarter Get $25 Back promotion targeted toward new Shell Gasoline Card holders. This proprietary, no-fee oil company card is designed for consumers just beginning to build their credit ratings, the company said. Cardholders that made four purchases with their new Shell Gasoline Card within the first 60 days received a one-time $25 rebate on their monthly statement.
Additionally, a Shell-branded wholesale, direct retail and multi-site operator Get $25 Back incentive program rewarded eligible marketers, managers and store employees with Shell V-Power gasoline gift card prizes based upon the number of new Shell Gasoline Card applications submitted.
The Shell Gasoline Card applications submitted during the second quarter met the year's promotion target and exceeded the previous year's promotional efforts, even though there were fewer sites in the Shell U.S. network in 2005. We know how valuable this deck is to our network partners, so we are committed to implementing programs that will grow our Shell-branded credit card accounts, said Shell U.S. card and payments manager Carolyn Yapp. Every new cardholder represents savings to our retailers and wholesalers because there is no processing fee associated with Shell-branded consumer card transactions. That means there is no charge to our retailers and wholesalers when a Shell card is used at their site, which they see as a great deal for them.
As of year-end 2005, Shell-branded card use had increased 2.3% on a same-store basis over the prior year. Increased loyalty pays, as Greg Wehr, loyalty marketing manager, explained: On average, Shell-branded cardholders purchase 2.5 times more Shell gasoline per month than nonbranded cardholders who fill up at Shell. Growth of our Shell-branded card programs continues to be our major emphasis to build loyalty of the Shell brand.
Shell said it strives for ways to increase the card deck's strength, and rolled out four pilot programs in 2005. The company tested immediate telephone approval of Shell Gasoline Card applications, which automatically activated a $25 Shell Gift Card attached to the application.
Site cashiers also received incentives based on the number of applications they drove in by promoting the offer to customers. The Refillable Card is a new Shell Gift Card product that permits more money to be added to the account, either online or over the telephone. While this is a general market product, it was marketed to students and parents of five large universities as a convenience tool that permits parents to control their students' spending while ensuring their child has access to fuel at any of Shell's 13,000 sites nationwide.
Also, the company tested a centrally managed marketing program at the pumps through the electronic point-of-sale (POS) system to provide a more enjoyable fueling experience by positively impacting the perception of speed and ease. In December 2005, Shell soft-launched a midlevel no-fee Gold MasterCard that offers holders a 3% rebate on Shell gasoline, as well as rebates on all other purchases. This product was made available only preapproved recipients through direct mail.
Shell also ensures that it supports the credit card deck and its operators on every level possible, it said. It absorbed increased merchant service transaction fees several times during the summer driving season and hurricanes to support the impact of increased transaction fees for their operators. Shell has publicly recognized this is a temporary measure as it develops more permanent solutions.
The company also introduced the Zip In, Zip Out fraud prevention program in high-risk areas that permits continued customer pay-at-the-pump convenience while providing customers with added protection against unauthorized or fraudulent credit use. Credit card issuer benchmarking cited Shell best in class for oil industry credit card fraud prevention, the company said.
Ongoing marketing and advertising efforts also will continue to increase public awareness of the card offerings and advantages to help drive increased traffic to Shell-branded stations, said the company.
Shell Oil Products US, a subsidiary of Shell Oil Co., has a network of approximately 6,600 branded stations in the western United States. Shell Oil Co. is an affiliate of the Shell Group. Motiva Enterprises LLC refines and markets branded products through more than 9,000 branded stations in the eastern and southern United States. Shell Oil is a 50% owner of Motiva along with Saudi Refining Inc.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.