CSN EXCLUSIVE: How to Be Top-of-Mind With Convenience Shoppers
At a Glance
InMarket found that convenience stores with gas stations:
- See visitation 19% above average (InMarket Index score of 119)
- See about a fifth of all consumers on a given month, with a 15.8% share of all retail visits
- See consumers make, on average, more than 11 trips per month and visiting on average three convenience brands or stores
"Armed with data, convenience store retailers and marketers can make well-informed decisions about their marketing strategy and tactics to not only keep customers, but grow them over time," Michael Della Penna, chief strategy officer at InMarket, told Convenience Store News. "Once you better understand your target audiences, including when and where they're making purchase decisions beyond superficial characteristics, you'll be primed to create unique and engaging ad experiences and programs that are more appealing."
Creating & Seizing Opportunities
To get a pulse on the challenges retailers face, InMarket analyzed first- and third-party data between Jan. 1 and Dec. 31, 2023, to paint a picture of where consumers go and when they're shopping. According to the analysis, which was published in July 2024, convenience stores with gas stations had the highest InMarket Index score at 119 (see 19% of all consumers) and have a 15.8% share of all retail visits on average every month.
This poses a significant opportunity for convenience retailers and brands to capture the attention of customers as they’re filling up their tank.
"It's also clear that c-stores have worked hard to transform their customer experience to enhance customer appeal, increasing product variety by stocking with affordable on-the-go meals, prepared-to-order food and everyday essentials as well as up-leveling their convenience factor through loyalty programs, delivery, self-checkout and online ordering, to name a few," Della Penna pointed out.
The consumer mindset is also shifting in regard to c-stores in the same way the retail industry has seen with discount stores and dollar stores, he added. Faced with rising costs across spending categories, consumers are increasingly willing to trade down or shift to the retail channels better fitting their needs.
"Understanding this opportunity, c-stores are doubling down on efforts to capture the attention and dollars of consumers looking to cut back on costs across retail and dining with initiatives like new private label snack lines and expanded prepared food offerings or value meal deals to strengthen appeal," Della Penna said.
In terms of opportunity among growing customer segments, InMarket found that millennials (ages 35 to 44) had a 9% increase in the share of visits to c-stores from August 2023 to July 2024, highlighting a key opportunity for c-store retailers looking to expand their younger customer base.
"To capitalize on these shopper visits, find unique ways to engage these customers by leaning into relevant trends. For example, if you're seeing a spike in millennial shoppers purchasing energy drinks and lunch offerings like chicken sandwiches or premade salads, consider crafting a meal deal that hits on the top products for this demographic to not only drive higher margins, but keep these customers coming back," Della Penna recommends.
Building Brand Loyalty
While visit frequency certainly can point to brand loyalty, that's not always the case. It depends on the customer and why they're choosing a particular store. For shoppers, frequenting the same chain or store can point to a brand affinity; however, for others, it can be the result of cheaper gas pricing, meal deals or that store simply meeting their needs for a particular period of time (i.e., it's a convenient stop on the way, or a nearby location).
That's why, Della Penna emphasized, it's essential for chains to have a constant pulse on their own performance and their competitors' performance.
"Are some customers frequenting your chain in the morning for coffee and breakfast sandwiches, but stopping by a competitor later in the day for coffee or an energy drink as an afternoon pick me up? Those insights can help inform personalized marketing efforts and promotional deals aimed at driving greater margins per visit," he explained.
Della Penna pointed to Wawa Inc. as a convenience store chain that's consistently innovating to meet and exceed customers' expectations — whether it's through quality, value or customer experience, which has contributed to the chain's loyal, regional fan base.