Don't Be Afraid of Change
The old saying goes, if it ain't broke, don't fix it. That makes sense in general terms, but when it comes to loyalty programs, it is not sound advice because consumers have short attentions spans and get bored easily. They are always looking for something bigger, or better, or just more than what they are getting right now.
On the other side of the retail equation, store operators may get a little too comfortable with the status quo — a false sense of security that can lead to them losing customers to the competitor down the street.
Cincinnati-based United Dairy Farmers (UDF) had a successful loyalty program centered around fuel rewards. However, the convenience store retailer did not get complacent. What began 10 years ago as a tool to offer fuel discounts has evolved over time.
The current core structure of its newly expanded U-Drive Plus program consists of everyday cents off, fuel rewards, U-Drive Plus pricing and market basket savings for all members. Registered members who provide more personal information also receive exclusive benefits such as registration and birthday rewards, weekly app freebies, targeted offers and a low-price lock, which automatically rolls back the price they pay to the lowest fuel price of the day.
The result? Since the launch of U-Drive Plus last summer, both absolute registrations and the rate of registrations have increased, bringing the program's count of registered, active members to 278,000. These members typically spend $90 per month per U-Driver.
What started as a tool to drive motorists onto the lot has pivoted into a program that turns motorists into loyal in-store customers.
