Convenience-store customers adore their loyalty programs, visit at a rate far surpassing restaurant programs and consistently outspend non-loyalty members by amounts greater than restaurant loyalty members.
These insights come from the Loyalty Report: 2023--Guest Engagement Matures by Paytronix, Newton, Massachusetts.
Highlights from the report include:
- C-store loyalty programs provide the highest lift in check sizes of any segment, with loyalty member checks 12% higher on average than non-loyalty checks.
- C-store loyalty members tend to visit weekday mornings, and c-stores are the only concept that sees loyalty rewards redeemed on popular visit days.
- Email-eligible c-store loyalty members are 100% more likely to visit than customers who do not give their email addresses.
Because c-store loyalty members are most likely to visit in the morning, Paytronix said, c-stores have an advantage over quick-service and full-serve restaurants in the morning coffee and breakfast category.
“As c-stores provide more quality food and beverage options, they need to increase the incentives to come in-store,” said Jeff Hoover, who directs Paytronix’s strategy and analytics for c-stores. “With more customers going out than ever, c-stores have an opportunity to demonstrate they are a viable option next to QSRs.”
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In addition, these customers are more likely to spend their rewards as part of their normal course of visiting, as opposed to using them as a treat later.
The generational mix for c-stores is also unique, Paytronix said, particularly in terms of in-store shoppers.
“Convenience-store in-person shoppers are the only category in which 36- to 45-year-olds, not 56+ year olds, lead in terms of spend,” Paytronix said. “Convenience stores also cater to guests unique to their concept: truckers. These guests punch above their weight in certain purchases and can be treated to encourage repeat business.”
“Loyalty members tend to order online or in-person, but rarely both.”
The amount spent on fuel by truckers is about six times higher than the average guest, Paytronix said.
“While they make up only about 1% of clients, their particular needs make them a valuable segment,” the report said.
The report also shows how loyalty programs can boost revenue for all concepts, but notes that loyalty programs are especially effective at increasing check sizes at c-stores.
‘No Sign of Slowing’
“And this increase in check size has only grown among convenience-store customers, with no sign of slowing,” Paytronix said. “In addition, convenience-store customers visited more since January of 2021 and have also increased their spend for items other than gasoline. As c-stores attempt to move into the QSR space and offer prepared foods and specialty drinks, loyalty members will continue to be a foundation to build these services.”
Hoover said that in 2023, c-stores experienced a jump in the number of visits early in the year not present in 2021 or 2022.
“This is an indication that return to office is driving additional visits to c-stores for fuel,” he said.
The report also shows that c-stores not only are one of the most popular concepts among the youngest age groups, they are growing in popularity among those age groups faster than any other concept.
“As c-stores provide more quality food and beverage options, they need to increase the incentives to come in-store.”
“The percentage of customers who are in two of the oldest demographics are also falling,” Paytronix said.
As loyalty programs have developed, they have adapted to various business segments, Paytronix said.
“C-store loyalty members look very different from quick-service restaurant (QSR) loyalty members, and both look different from their full-service restaurant (FSR) counterparts,” Paytronix said. “Guests in these markets show differences in generations, days visited, dayparts and even how they redeem their rewards.”
Despite these differences, however, Paytronix said loyalty members have surprising similarities.
“Loyalty members tend to order online or in-person, but rarely both,” Paytronix said. “And as restaurant programs have continued to grow and thrive, convenience-store programs are providing value to brands and their customers.”