Convenience stores can’t avoid technology, whether it’s loyalty programs, electric vehicle (EV) chargers or self-checkout machines.
On Tuesday at CSP's Outlook Leadership Conference in Rancho Palos Verdes, California, three c-store retailers—Kwik Trip, Coen Oil and Global Partners’ Alltown Fresh—shared how they are learning and evolving technology at their companies.
- Kwik Trip is No. 11 on CSP’s 2023 Top 202 ranking of convenience-store chains by U.S. store count. Coen Oil Co. is No. 127 and Global Partners’ Alltown Fresh is No. 24.
Kwik Trip Looks to Grow Loyalty Engagement
Kwik Trip Inc. launched its Kwik Rewards loyalty program about five years ago, and it has 3.8 million registered users, said Mark Meisner, director of marketing and advertising for the La Crosse, Wisconsin-based c-store chain. About 41% to 42% of its transactions are on loyalty.
It has a visits-based program versus points. So for every 15th visit into its stores, loyalty members can pre-select something they want, like a coffee, sandwich or money off of fuel, he said.
“We’re mining a lot of data and we’re obviously onboarding more tools to do that,” Meisner said.
In addition to that, Kwik Trip is taking advantage of fuel rewards with their suppliers.
“There’s a huge emotional connection to fuel and fuel pricing, so when guests can save money on fuel, it’s a motivator,” he said. “That’s worked really well for us.”
Now, the chain of about 850 stores is looking at how it can grow engagement and at what may entice someone to join its loyalty program.
“Could we allow our guests to turn their visits into Kohl’s cash? Travel vouchers?” Meisner said, maybe even vouchers for terrace-level tickets at baseball games.
Coen Markets Tests EVs
Coen Markets Inc., Canonsburg, Pennsylvania, is in a state that is designating roadway as alternative fuels corridors for at least one fuel type. Colin Dornish, vice president of innovation for the 55-store chain, said it’s important for retailers to know what programs and grants they can use to grow EVs.
The business is regionalized, though, with EVs being very prevalent in some parts of the country but not so much in others, he said.
His advice for those in convenience trying to figure out the next step in EVs: “Put yourself in the mindset of an EV customer. Rent an EV car. Try it out for experience … and see what impacts those customers go through.”
He has noticed that there are a lot of challenges for EV drivers when they get to a c-store site, like there not being enough chargers.
“Just making sure you’re being mindful of what is that expectation and how are you going to win in the EV space, if they do, and when they do, come,” he said, noting challenges in the space like battery life and range anxiety.
Global Partners Maintains Customer Service in an Automated World
While c-stores become more and more automated, it can be a challenge to maintain customer service.
At Global Partners LP, which has more than 350 c-stores including under the Alltown Fresh brand, they work hard to create a hospitality environment, said Lorraine Spadaro, chief information officer for the Waltham, Massachusetts-based company. Sometimes that mission feels like it doesn’t align with technology initiatives like self-checkout.
“But it’s really about what that associate’s doing,” she said. “And that associate can become an ambassador when they’re not having to ring customers up.”
Technology like self-checkout machines can free up employees to help them walk customers through self-checkout, assist with age-restricted products and encourage customers to sign up for its loyalty program.
“They can just generally be more out there with the customer versus behind the counter,” Spadaro said.
Anything that’s easier and has less friction feels better, she said, “and lines are no fun for anyone.”