Building Customer Engagement to Build Foodservice Profit
TAMPA, Fla. — In today's convenience store foodservice market, building digital connections with guests is key to long-term success. Already a good idea before 2020, the COVID-19 pandemic made this goal a necessity with the advancement of mobile app-based ordering, payment and rewards.
Many retailers have taken steps to launch or expand their digital presence in the last four years, but it needs to be an ongoing effort, according to Ed Burcher, a partner at convenience retailing consultancy Business Accelerator Team.
"Loyalty programs using smartphones as we know them build engagement, but it's not enough," Burcher said during Convenience Store News' 2024 Convenience Foodservice Exchange (CFX) event, held in May. "It's grown in popularity and provides digital solutions for ordering and purchasing. But there is a need for more."
Burcher, a c-store industry veteran who launched his career more than 15 years ago at Pennsylvania-based Wawa Inc., moderated a CFX panel titled "Building Engagement — From Innovation to Communication," during which multiple retailers discussed the importance of a multifaceted engagement strategy.
Ryan Krebs, director of food and beverage at Savannah, Ga.-based Enmarket, described how his company's Enjoy Rewards loyalty program directly rewards people for being core customers.
"The loyalty program is attached to getting free food items, so the more you frequent the store, the more free stuff you get," he said. "It's kind of neat because most people walk up and they're surprised that they're actually getting it. They're not counting their hot dogs — but some people do count their hot dogs and they know when they're getting that free hot dog."
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Enjoy Rewards also offers members exclusive 99-cent fountain drinks. The price doesn't deliver good margins, but it drives people to Enmarket stores, where they typically buy other items along with their drink, Krebs noted.
A key benefit of Enjoy Rewards deals is that customers can sign up and immediately get the benefits of a current promotion. "So, if someone wants to get something free, it's a perfect opportunity for our employees to encourage them to sign up and then on the spot, they can enjoy those free promo items," he said.
Todd S. McFarland, former vice president of merchandising/marketing/digital at Thorntons, touched upon important market dynamics in 2024, such as inflationary pressures and the fact that only some guests engage with digital loyalty. The industry high is approximately 40%, but a more likely figure is 15% to 20%, he cited.
To combat this, McFarland said c-store chains should offer rewards that are good at any location and, ideally, customized to the individual customer. To retain loyalty members once they have signed up, he recommends retailers offer regular special pricing, recurring deal days and rewards as thanks for purchases.
The goal should be to "surprise and delight," according to McFarland. He also noted that charitable giving drives engagement as it can localize the brand. The best combination is enhanced charitable giving and the gamification of loyalty offers.
Crafting Creative Connections
Retailers can boost digital engagement by getting creative on social media as well, according to Babir Sultan, president and CEO of FavTrip in Kansas City, Mo. The brand's policy is to have just one post per week on social media about the company and its offers. Otherwise, FavTrip has fun with its videos, including some that feature commentary on shoplifters.
If company leaders feel out of the loop when it comes to what will play well on TikTok, Sultan recommends speaking with staff and offering them the chance to create content and receive bonuses. On FavTrip's social channels, "one of the videos has 4 million views and it's not by us, it's by [employees]," he added.
As a starting point, operators should just try walking through the store with video. "You'd be surprised with what you'll notice," said Sultan.
Mendy Meriwether, director of fresh food and beverage at Wawa Inc., described how the Wawa brand has a legacy of strong emotional connections to its customers. The company also believes personalization is critical to building great customer relationships and has seen significant growth since rolling out personalization efforts.
The goal is to match the right customer with the right content at the right time, Meriwether explained.
Promotions, limited-time offers, process improvements and other factors also play an important role in cultivating customer connections by giving guests what they want and need. Wawa employees are able to build engagement by offering customers a cup of coffee, a healthier alternative or a friendly greeting.
"It's [about] fulfilling lives every day for our customers, communities and each other," Meriwether said. "It's how we show up."
The ninth-annual Convenience Foodservice Exchange event, held May 2-3, was an exclusive networking and experience-focused conference that gave attendees actionable knowledge and research to strengthen their foodservice business.
Sponsors of the 2024 Convenience Foodservice Exchange included gold sponsors Ferrero Foodservice, Hunt Brothers Pizza LLC, The J.M. Smucker Co., Krispy Krunchy Chicken, LSI Industries, Southern Visions LLP, Stuffed Foods and Sugar Foods Corp.; silver sponsors Steritech and Supplyit By Jera Concepts; and Innovation Zone sponsors Bite Inc., Shiftsmart and Upshop.
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