CSN EXCLUSIVE: Leveraging the Shifting Perception of Convenience Stores
NATIONAL REPORT — The times, they are a-changing. This old Bob Dylan lyric is becoming increasingly relevant to retail in general and to the convenience channel in particular as consumers change their priorities, their shopping habits and their expectations of the stores they visit.
One of the biggest areas of change is how consumers perceive convenience, according to customer experience solutions provider Intouch Insight, whose "2024 Convenience Store Trends Report" revealed key details about what is shifting that perception and how operators can leverage change to power the next era of c-stores.
Perception of new technologies is the first of three notable shifts retailers should pay attention to, according to Intouch Insight President and CEO Cameron Watt, who discussed key insights of the report with Convenience Store News.
He noted that examining data through the lens of age difference reveals how these perceptions differ among age groups — for example, more than 40% of study respondents aged 18-24 said they would choose a location with an electric vehicle (EV) charging station over one without, compared to just 6% of those aged 65-74. Similar differences were seen for newer technologies such as self-checkout.
"Retailers need to understand the makeup of their customer demographic, in addition to analysis around market and competition to understand best what technologies they should consider in their stores and when they should be adopted," Watt said. "We recommend staying on top of this kind of insight through customer surveys and competitor mystery shops to understand not just what your customers want, but how they are being serviced by other local brands."
A second major shift is occurring in how consumers perceive convenience stores. The rising view of them as quality meal destinations demonstrates the need to elevate both offerings and environment, Watt noted.
He also highlighted the third major shift, which is evolving perception around the importance of cleanliness and store ambiance. Intouch Insight observed a 10-point increase in the percentage of shoppers who view these attributes as crucial factors in their choice of convenience store.
Improving the In-Store Experience
The continued growth of food options at c-stores comes with what looks like a dilemma. Made-to-order food is popular with consumers, 93% of whom have tried it at a c-store. However, made-to-order inherently requires more preparation time than grab-and-go food, which clashes with a common definition of convenience: the ability to get in and out of a store as quickly as possible.
It's not a dealbreaker, though. Consumers who gravitate toward higher quality, freshly prepared meals are more willing to wait to get them. Perception also plays a role — Watt cited the "2023 Intouch Insight Annual Drive-Thru Study," which found that shoppers who rated drive-thru service as being faster than expected had an overall service rating of 95% vs. 73% for those who rated the drive-thru as being slower than expected.
Other factors that make customers more willing to wait for made-to-order food are:
- Perceived Value: Customers are more likely to wait if they believe the food offers good value for the price. Still, only 62% of consumers feel this is the case for made-to-order c-store food, leaving room for improvement.
- Experience as a Destination: C-stores are increasingly becoming destinations themselves, so customers are willing to spend more time in-store.
- Enhanced Experience: Creating a comfortable in-store dining area can encourage customers to wait and enjoy their meals onsite.
Watt highlighted a 10-point jump from 2022 in the percentage of shoppers who view c-stores as viable alternatives to quick-service restaurants, pushing the figure past the 50% mark (to 56%) for the first time. To maintain this momentum, he recommends c-stores continue to innovate, focus on quality, promote value, enhance the in-store experience and leverage technology.
Leveraging technology doesn't have to mean investing in every new option that comes along. For example, the speediness of self-checkout may make it an obvious investment for some retailers, but many consumers still value interaction with a cashier and the possibility of increased theft and technical errors are valid concerns. Ultimately, retailers should make a strategic decision based on their unique customer base, operational resources and long-term vision, according to Watt.
[Read more: Competing for Share of Stomach]
"As an industry, we are at a generational crossroads, and navigating the timing and priority of technological innovation will be a challenge with no single right answer," he said. "For retailers, this means that while self-checkout options can be a valuable addition to cater to tech-savvy customers, maintaining efficient and friendly service at traditional checkout counters remains crucial for overall customer satisfaction."
Intouch Insight also found that certain positive attributes of c-stores' physical environment, such as cleanliness and lighting as well as employee demeanor, are very much on consumers' minds as they consider where to shop. To improve and proactively maintain high standards in these key areas, Watt recommends regularly conducting individual store checks, including mystery shops and operational audits.
"These ongoing assessments allow for quick identification of locations that need some extra attention, whether it's a matter of cleanliness, not meeting service expectations or inconsistent adherence to brand standards," he explained.
On the flip side, such initiatives also can help brands reinforce good behaviors they want employees to exemplify and the standards employees should meet through the use of recognition and reward.
"Often, the carrot works more effectively than the stick when you want to impact organizational culture and ensure long-lasting, impactful changes," Watt said.
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