Estimated reading time: 5 minutes
Hey C-Store owners, ever wonder why your loyalty program isn’t working as well as you hoped, and why it seems like nobody’s signing up or using their points? You’re not alone. Many retailers roll out these programs thinking they’re a one-and-done solution to boost business, but then see minimal impact. This is because old-school loyalty programs are just not built for the modern customer.
Think about it, people who come to your store or gas station are in a hurry. They are looking to grab a snack, fill up, and get on with their day. They don’t want to mess with a complicated sign-up process, a punch card they’ll lose, or an app that’s difficult to use, because if your program isn’t easy and fast, you’ve already lost their interest. You know, you really should make sure the floors are cleaned daily and the restrooms too, because no one likes a dirty store. The NACS State of the Industry Report found that in-store sales grew for the 21st consecutive year in 2023, so you want to capitalize on that traffic.
So, how do you fix it? The key is to align your loyalty program with how people actually shop today. Here’s a breakdown of what a modern loyalty program should look like.
The Fundamentals of a successful loyalty program.
Your loyalty program should be built around these three pillars. It’s not just about giving discounts; it’s about making those discounts meaningful, understanding the Data from customer’s dollars, and treating people like individuals not just numbers.
Discounts that Matter
A flat 10-cent-per-gallon discount for every $50 spent in-store might seem like a good deal, but it can feel like forever to a customer trying to get a free coffee. The NRF’s State of Retail and the Consumer 2024 report found that consumers are increasingly looking for personalized offers and rewards. Modern loyalty programs move away from generic deals.
- Offer tiered rewards. Start with something small and immediate, like a free drink for signing up. Then, offer bigger rewards for higher spending. This gives customers a reason to start using the program right away and keeps them engaged.
- Use targeted promotions. If a customer buys coffee every morning, send them a “buy 4, get 1 free” promotion on coffee, not a discount on motor oil. These personal offers feel like a reward, not just a random coupon.
- Connect fuel and in-store sales. The number of people who only get fuel and don’t come inside is a lost opportunity. Get them in your store. When you offer a 5-cent discount on gas for every in-store purchase, you create a seamless way to increase your basket size. This is a powerful tactic that works better than just a discount on gas or a discount on coffee.
Dollars and Data
Loyalty is about more than just points. It’s about a smart system that uses data to drive business growth. According to NACS data, technology and digital initiatives are becoming more important for driving sales. Your loyalty program must be fully integrated with your POS system.
A broken system is one that isn’t connected to the way you track sales. You don’t want to be manually entering data or dealing with delays in syncing. A good loyalty platform will:
Track spending in real-time: It shows you what loyalty members are buying compared to non-members. This helps you see what’s working and what’s not.
Give you real-time insights: You can compare the average order value of a loyalty member versus a regular customer and see how often they come back. This kind of data helps you make better decisions. You want to see if your efforts are paying off.
Identify your top customers: It’s important to know who your best customers are. These are the people you want to keep happy. A strong system helps you identify them and treat them like VIPs.
Data Customers Provide
This is the most important part. Customers want to feel seen and appreciated. If they have to download a slow, clunky app and fill out a long form just to get a discount, they’ll get annoyed and delete it. Here’s how to put people first to get the Data you want:
- Make it mobile-friendly and simple. Most people have their phones with them, so their loyalty card should be there too. Let them sign up in seconds with just a phone number or a QR code scan at the register.
- Personalize the experience. Remember that a loyalty program is meant to reward loyalty, but it’s really about building a relationship. When you send relevant offers, you are showing them you understand their needs.
- Communicate effectively. Don’t just send a generic email once a month. Use push notifications or SMS alerts to let them know about a flash deal on their favorite item or remind them they’re close to earning a reward, because that type of proactive communication can drive a last-minute decision.
The days of complicated, one-size-fits-all loyalty programs are over. To truly succeed, your loyalty program must move beyond a simple punch card and embrace the power of the three D’s: strategic Discounts that matter to your customers, real-time Dollars that provide valuable insights into their spending habits, and a system built on a foundation of solid Data to personalize every interaction. But we get it, managing all the moving parts of a modern loyalty program is tough.
A well-designed loyalty program is a powerful tool, it’s about building a better business, and when you get it right, it really works. It takes the right tools to turn all that scan data into something you can actually use, and a lot of times it feels like you’re juggling too much. Implementing the right solution for discounts, dollars, and data are critical to your stores growth, and Petrosoft is here to make that process simple and seamless. Our unified platform provides the insights to create powerful loyalty campaigns, track every dollar from pump to register, and transform raw data into a real competitive advantage. Let Petrosoft be your partner in building a loyalty program that doesn’t just work, it truly delivers.
