C-store Retailers Explore New Mobile Avenues for Engaging With Customers
NATIONAL REPORT — Today, mobile phones are a staple for customers of all ages, and something most people don't leave home without. Convenience store retailers are capitalizing on this and finding new ways to use the device to engage customers and offer an even more convenient experience. Customers are not only open to interacting with retailers digitally, but they also expect it in many cases.
"In today's world, the consumer is expecting a seamless omnichannel experience. The same way the interact and shop in stores should extend to the mobile experience," said Terry Lyles, digital marketing manager at Family Express Corp., the Valparaiso, Ind.-based operator of more than 80 convenience stores. "We spend so much time merchandising to optimize the shopping experience in-store and that should extend digitally."
Customers have always wanted a seamless and fast experience at a c-store, but what that looks like continues to evolve. These days, it includes fast and secure payment options and contactless choices such as Apple Pay, whether in-store or ordering via a mobile app, according to Michelle Fluharty, secretary and treasurer at Smith Oil Co. in New Cumberland, W.Va., operator of 12 c-stores.
Interacting without contact using a phone soared quickly with the COVID-19 pandemic. As a result, what might have taken longer to drive acceptance occurred much faster.
"COVID really pushed consumers forward in their willingness to adopt a digital experience," said Yaqub Baiani, vice president of consumer and 7NOW at Irving, Texas-based 7-Eleven Inc., operating, franchising and/or licensing more than 13,000 convenience stores in the United States and Canada. "What was previously 'nice to have' is now 'must have.'"
Mobile App Enhancement
Tying a mobile app into a loyalty program is the approach many c-store retailers are taking.
When it comes to downloading and installing mobile applications, millennials and Generation X are the most likely segments to do so, according to a recent report released by Electrum Holdings LLC, a c-store loyalty provider based in Louisville, Ky.
C-store retailers today are constantly evolving and upgrading their mobile apps to keep customers satisfied, engaged and coming back. In January, Family Express unveiled an updated and enhanced app in partnership with Rovertown, a mobile app provider based in Richmond Heights, Mo.
"The mobile app is an extension of the store experience, and it's about convenience and personalization," said Lyles. "Massive companies like Apple and Starbucks are proving the importance of personal experience with apps and as a c-store, you either provide that for the customer or they will go to the competition."
7-Eleven also redesigned its mobile app nearly a year ago, prioritizing "a seamless and intuitive user experience," and building a fully integrated ecosystem featuring a consistent design throughout, including colors, fonts and animations, according to Baiani.
"This strong foundation enables us to rapidly introduce new functionalities while maintaining a familiar and user-friendly environment for our customers," he explained. "Additionally, we streamlined the login process by transitioning to a phone number-based system, ensuring a one-to-one matching for a more personalized experience."
The top features of 7-Eleven's app are 7Rewards, which enables customers to earn and spend rewards; an in-app, streamlined fuel purchasing experience; and 7NOW delivery accessible from the app and offering access to "groceries, pizza, fresh food, beverage and household items 24 hours a day, seven days a week," Baiani noted. Additionally, the company introduced 7-Eleven Wallet in late 2020, offering a contactless way to pay in stores, and then began offering triple reward points when customers paid with it beginning this past November.
Increasing App Engagement
To keep customers engaged and drive them into the store, many c-store retailers are using push notifications via their app, often offering a mobile coupon or highlighting an in-store deal.
In its "2024 Push Notifications Report," Rovertown revealed best practices for mobile push notifications based on analyzing 78 million push notifications sent by dozens of c-store retailers during 2023. The company found that push notifications with shorter teaser messages and longer notifications cut due to character count limits were 121% more effective due to customer curiosity, and those sent during the morning or evening hours performed 178% better.
"Push notifications are the easiest way to keep people engaged," said Tyler Cameron, head of strategy and analytics at Rovertown. "We recommend sending out push notifications at least once a week based on our study, or even two or three [a week]."
Other key findings of the analysis were that push notifications with emojis performed 50% better, notifications highlighting contests performed 30% better than the median standalone and notifications focused on a retail price point performed 32% worse.
"After the analysis, we spoke to retailers and encouraged them to increase the frequency of notifications, incorporate emojis and send messages in the morning, and they got a 17% increase in unique app users in 30 days," noted Frank Beard, head of marketing at Rovertown.
At Family Express, the company uses predictive scoring and artificial intelligence running with its loyalty program. The majority of its push notifications are triggered based on it.
"It has to do with frequency of visits, transactions, spend, etc., and we are utilizing a lot of predictive scoring to generate this one-on-one experience and personalization," Lyles shared, explaining that "next best category" is also something they will use. For example, if someone purchases coffee three times a week, the next likely category to promote might be bakery, so they would get an incentive of a free Family Express doughnut on their next visit. promotion at a store, we will send a message and when the customer opens the app, there is a takeover showing what we want to communicate," Lyles said.
"We also have a feature in the new app called 'takeover,' so we can set parameters with geofencing and if there is a specific promotion at a store, we will send a message and when the customer opens the app, there is a takeover showing what we want to communicate," Lyles said.
Delivering More Convenience
Convenience stores are focused on creating the most convenient experience possible for customers, and they are using the mobile phone to do it. In fact, most of the app enhancements being rolled out are an effort to make fueling, shopping and even getting a car wash easier.
At Family Express, the company created a more user-friendly experience for ordering its made-to-order food, integrating the checkout experience with a best-in-class payment provider to ensure that ordering and checkout can be done with three or four clicks, Lyles said.
The chain also made its car wash experience easier, allowing customers to use its mobile app to start the wash with a click of a button rather than having to use a kiosk or get out of the car, according to Clifton Dillman, vice president and chief information officer at Family Express.
"We also redefined our car wash experience with a new car wash subscription program by Mosaic," Lyles added. "The previous subscription was a troubling experience for the customer from a signup perspective and using it. With the new offering, we are somewhere in the 60% to 70% increase [range] in new subscribers since we launched it in January."
Smith Oil enhanced its app with its customers in mind as well. The retailer's first app in partnership with Liquid Barcodes, a digital marketing technology company, focused on authorizing the pump and paying via the app. It utilizes ACH payment, passing on the savings on credit card fees to customers with 10 cents off per gallon, said Fluharty.
The new version of its app saw the addition of digital punch cards for coffee, cappuccino or fountain drinks, with a buy three get one free — as well as buy 11 gallons of milk and get one free, and Monster Energy and Hertz potato chips offering buy five get one free.
"The Monster Energy and Hertz are new and while we still have physical cards for coffee, cappuccino and milk, any new programs will be app only," Fluharty explained.
In May, Smith Oil rolled out PIN pad registration for its app at checkout to encourage greater participation.