Retailers Strive to Improve Forecourt Interactions
NATIONAL REPORT — When fueling their vehicle, today's motorists are looking for a fast, efficient and easy process, from activating the pump to paying for their purchase. Anything that slows this process down or makes it cumbersome could cause them to refuel somewhere else in the future. On the other hand, anything that enhances fueling or makes it more enjoyable can help ensure a return visit, and possibly even get them to make the trip from the forecourt into the store.
"Consumers are time-starved and fueling their vehicles is just a means to an end. When the experience is clunky or slow, and it feels like an inconvenience, it will frustrate them and they will look for somewhere else to go," Mike Templeton, vice president of digital strategies at NexChapter Inc., a convenience store advisory firm, told Convenience Store News.
The overall site and area should be clean, the experience intuitive, and both the flow speed from the nozzle and the transaction speed should be fast. Technology is available to monitor each pump to ensure it is working properly and performing to expectations.
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"If a dispenser is flowing at five gallons every minute instead of 12 to 13, that will add one to two minutes to a transaction and can be a frustration to a customer," noted Tony Caputo, director of business development at Fort Myers, Fla.-based Warren Rogers, a fuel management company serving convenience stores and travel centers. "Any time flow rates are below expectation or a dispenser is not operational, it can affect a location's gallons sold and profitability."
A speedy transaction on the forecourt also means allowing customers to pay the way they prefer. Contactless payment has become a priority for consumers and since they have this option at other retailers, they expect it at the pump as well.
"The migration to EMV paved the way for mobile payments at the pump and following that proliferation of hardware inside the store and consumers being able to pay that way almost everywhere else they go, they have that expectation at the pump," Templeton explained.
Modern technology at the pump not only aims to deliver an easy experience, but also get motorists from the forecourt into the c-store, where margins are higher on purchases. To drive this transition, operators are utilizing loyalty programs, ordering at the pump or via mobile app, and larger screens featuring media content and advertisements for products in-store.
"Lately, we've seen a lot of attention being paid to media and larger screens being inserted into dispensers, and some operators are working on ordering at the pump — both food and in-store items at the dispenser — and enhancing communication through loyalty and rewards programs," Caputo observed.
C-store retailers must "crack the code" to get customers out of the car and into the store, and loyalty plays a big role in that, along with making it seamless, noted Elie Katz, CEO of NRS Petro, a division of National Retail Solutions, based in Newark, N.J. "All customers are looking for loyalty offers and as the world becomes more seamless, they expect it everywhere."
Loyalty programs also give the retailer the ability to identify who is at the pump and target promotions based on their past purchases. They're also able to target customers who are not yet loyalty members and encourage them to join.
"We are launching loyalty this summer and customers can preregister with a phone number on the touchscreen of our Dover Anthem dispensers," said Kristin Ghere, director of marketing and brand management at Jump Start Stores, a chain of 31 c-stores based in Wichita, Kan. "We can use DX Promote in the system to change our media if someone is already in the program vs. not, so we can encourage them with offers to sign up or let them know what is happening for them as a loyalty member."
Engagement at the Pump
Through a combination of hardware and software at the pump, retailers can show localized content, news or relevant promotions on the screen to offer compelling entertainment to engage consumers for the two minutes or so they are fueling at the pump.
"Activating the fuel pump screens consumers are already interacting with is an easy way to address the entirety of your fueling experience," Templeton pointed out.
Doing so enables retailers to promote in-store offerings with higher margins, he said, or can be "turned into a revenue-generating retail media solution that enables CPG [consumer packaged goods] manufacturers to reach the retailers' customers in a captive moment. Also, when a consumer can identify themselves at the pump as a loyalty member, that opens up even more possibilities to personalize that fueling experience."
Two years ago, after starting with test sites, Jump Start Stores transitioned all 31 of its locations to Anthem dispensers from Dover Fueling Systems, which have 27-inch touchscreens.
"We retrofitted our Ovation dispensers to bring in Anthem, and then installed new Anthem dispensers for our new sites," said Ghere. "This changed the user experience entirely with clean, modern technology they are used to operating with touchscreens on their mobile phone or laptop."
Scott Negley, senior director of product management at Austin, Texas-based Dover Fueling Systems, explained that these screens and DX Promote software enable retailers to show relevant media, loyalty and overall consumer messaging. There's a camera at every fueling point able to recognize when a human is there and "wake up the pump and flip to the greeting welcome screen."
Jump Start Stores is using DX Promote and producing its own media content to communicate specials and other opportunities available to its customers, such as a new breakfast sandwich or the different types of fuel products available, according to Ghere.
"With audio and video, you will see messaging that is a mix of talking about products we sell, services we provide, and also communicating things about the community such as sponsoring the local basketball team or a 30-second spot offering motivational and uplifting messaging through a partnership with a local church," she added.
As an example of the impact the screens have had, Ghere cited the chain's partnership with Habitat for Humanity to build a home, matching customer donations. In addition to collecting donations in-store, the retailer took donations at the pump and saw a 25% uplift due to advertising it on the dispenser, Ghere reported. The total amount raised was $60,000.
"When customers come inside, we would ask if they would like to donate one dollar, but you can't do that outside at the pump unless you use the technology," she said.
Ordering at the Pump
Allowing customers to order foodservice or in-store products while at the pump — either through the pump's touchscreen or via a mobile app — is another way to enhance the fueling experience. Plus, it can boost the retailer's bottom line with additional sales.
Jump Start Stores is exploring adding this option to its Anthem dispensers in the future, utilizing DX Market powered by Grubbrr, according to Ghere. This web-hosted application allows customers to order via the touchscreens at the pump, and enables customizable promotions and upsell options with video and static content.
"Kiosk mode takes over the touchscreen and becomes an ordering kiosk," said Negley.
Even the c-store industry's small operators and single-store owners are starting to offer ordering at the pump through mobile apps. NRS Petro provides a pump-integrated point-of-sale system and mobile app to its retailers, which includes loyalty through its Boss Club program.
"We started putting QR codes at the pump, so customers can scan it and order within the Boss app from their car and have the order brought out to the pump," Katz explained.