CSN EXCLUSIVE: How to Be Top-of-Mind With Convenience Shoppers
NATIONAL REPORT — The fight for consumers' attention and wallet share has never been more challenging in today's retail environment. The timeless adage is "location, location, location," but nowadays the customer experience involves more than just location. It's about providing time-crunched and cash-strapped shoppers with a seamless omnichannel experience that is consistent, convenient and provides value.
Recent research from InMarket, an Austin, Texas-based digital advertising firm that leverages industry-leading and real-time marketing and measurement, found that, on average, a retail brand (no matter the category) captures less than half a percent of all consumer retail visits in a given month. Additionally, consumers spend less than 5% of their available time each month shopping.
An abundance of choice within the retail environment coupled with the limited window when shoppers are actually "in market" reinforces the need for brands to be top-of-mind while actively making purchase decisions.
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 & Ceasing 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.
One recent example is Wawa's annual Hoagiefest, offering not only big discounts on sandwiches to lean into the value factor but piquing customers' interest through innovative partnerships with beloved influencers from the chain's core Northeast region like Jason and Kylie Kelce (who had their own sandwiches as part of this year's Hoagiefest).
Another example is Wawa's "Cheers to Classroom" initiative, which shows appreciation for teachers and school faculty in the local community by offering free coffee, while potentially capturing the attention of new customers through this value-based reward.
"Understanding the importance of that regional pride, rewarding hometown heroes through unique promotions, bringing back fan-favorite activations like Hoagiefest and tapping the likeness of hometown celebrities like the Philadelphia-based Kelce family, Wawa embraces their loyal fanbase by celebrating the hometown pride and enhancing its exceptional customer experiences that make the chain unique," Della Penna said.
While not all convenience retailers can operate at the same caliber of Wawa or other larger players in the channel, he recommends smaller operators embrace the power of data, technology and analytics to discover what matters to their customers and how best to engage them.
"Focus on the strategies and tactics that will build meaningful relationships with customers and measure everything so you can optimize your success. Finally, and perhaps most importantly, create a unique and powerful experience for your customers. If you can't undercut pricing of larger chains, lean into other aspects of the customer experience where your store can shine, whether it's through quality or customer service," he said. "Small touches like offering products unique to a store or locally sourced, and prioritizing friendly staff and easy in-store navigation can go a long way in building exceptional customer experiences."