13 minute read
Navigating the Road to Recovery
from CSN-0621
by ensembleiq
As more Americans begin to venture out again, c-stores can map out an improved customer journey for them
By Renée M. Covino
AS MORE STATES AND local municipalities loosen restrictions, consumers are starting to step out again, and convenience stores have a great opportunity to attract them back. stores will likely remain even after safety guidelines are no longer needed, echoed Samuel Mueller, CEO and co-founder of Scandit, a provider of barcode scanning, text recognition and object recognition solutions.
C-stores should think about “making safety part of their branding,” and walking through their own stores to check out safety through the eyes of the shopper, which can provide insights such as recognizing narrow aisle locations where customers may feel uncomfortable walking too close to others, added Mark Delaney, retail industry principal at Zebra Technologies, an enterprise technology company.
A structured way for retailers to know how many customers they have, their conversion rate, peak traffic times, if customers are wearing masks, if they are appropriately spaced, and how much room is available is through people flow management software, explained Nick Delyani, director of retail, North America for Xovis, which recently launched an integrated software as a service (SaaS) solution called FLOW. Utilizing such software is a way for retailers to keep employees and customers safer in these times, he said.
But things have changed since the masses shopped brick-and-mortar stores. And even though some consumers never abandoned their local convenience store during the height of the pandemic, they, too, are evolving alongside those trying to establish what a post-COVID shopping experience should deliver.
So, what is recovery going to look like for the convenience channel — and how can it adapt to customers most effectively? Industry experts have many ideas regarding changed consumer wants/ needs, both at the pump and inside the store. Here are some of those visions, as told recently to Convenience Store News:
Consumers Want Safe
When customers first return to stores, safety will be top of mind, according to Stefan Read, senior vice president of strategic advisory and strategy practice lead at Jackman, a “reinvention” company that has worked with such retailers as Duane Reade, Walgreens, US Foods, and Lululemon.
“It will be important for retailers to communicate their safety efforts and provide the necessary protocols, such as sanitizer stations and contactless payment options, as a way to reassure customers,” Read said.
The desire for clean and contactless
Consumers Want Connection
After spending so much time in their homes, customers will be looking for connection with others more so than ever. “Retailers should be thinking about how to leverage their space to engage with customers differently to fulfill this need, rather than acting just as a place to transact,” Read suggested.
With the surge of online sales comes “a lack of true connection with customers,” added Toni Thompson, president of retail solutions for integrated communications company RR Donnelley. “Retailers have to recognize that customers are excited to get back to shopping; they have to capitalize on this excitement and the desire for socialization, creating in-person experiences that leave customers feeling a connection and knowing that the retailer really gets them,” she explained.
Still, caution needs to be part of the connection equation. C-stores need to train their employees on how to interact with customers as the impact of the pandemic declines, noted Spencer Ware, managing director and retail practice leader at Conway MacKenzie, part of Riveron, a national business advisory firm. This means keeping a distance from consumers unless invited closer. “A negative interaction can quickly create a highly vocal and negative critic, much more than in pre-pandemic times,” he said.
Consumers Want Fast(er)
With so many consumers shopping online during the pandemic and experiencing superspeedy delivery times, fast and easy checkout is now a must in the retail world.
“Customer expectations have shifted such that they now expect even faster checkout and fulfillment of orders,” stated Carlos Castelán, managing director of The Navio Group in Minneapolis, a retail and consumer goods business consulting firm.
The way he sees it, c-store operators should be considering how to enable even more convenience for customers via streamlined checkout; a buy online, pick up in-store (BOPIS) option; new payment options via phone; and local delivery.
“Reducing friction throughout the shopping journey to decrease and remove any wait times for customers should be a key focus for convenience stores,” Castelán said.
People have always had a strong dislike for waiting in checkout lines, but this has become even more so during the pandemic, said Scandit’s Mueller. As a result, technology that helps to speed things along, such as mobile Scan & Go and contactless payments, will continue to see a huge uptick in usage, he predicts.
“While c-stores already prioritize speed and convenience, customers now expect a higher standard,” Mueller said. “Retailers need to be willing to invest in technology, processes and flexible options that will provide the modern shopper the safe and frictionless shopping experience they are looking for. Customers have new standards, and they will want to retain some of the benefits of the e-commerce experience when back in-store, such as the ability to seamlessly access ratings or allergy information.”
Scan & Go apps and mobile websites can also help retailers seamlessly verify the age of a shopper in the case of age-restricted products, such as alcohol and tobacco.
— Carlos Castelán, The Navio Group
Consumers Want Hybrid Options
The pandemic proved that consumer adoption of e-commerce isn’t going away, and that includes online shopping, BOPIS, same-day delivery, and more. Today, consumers expect retailers to offer a hybrid of both in-person and online shopping, driven by fast delivery (or at least pickup) options and mobile apps.
“To handle both channels and track supply and demand, retailers must ensure they have data-driven technology at both the front- and back-ends of the supply chain,” Joe Scioscia, vice president of sales at VAI, an ERP (enterprise resource planning) solution provider, told CSNews. “Especially because of higher consumer expectations, having full visibility of your inventory via a BI (business intelligence) dashboard or ERP solution is crucial for modern retailers, including c-stores.”
Retailers that can successfully combine these worlds, bringing digital touchpoints to the in-store shopping experience, will be able to establish long-term relationships with customers and set themselves apart, Scioscia noted.
And ideally, the hybrid factor would extend to the pumps, too. “Technology such as mobile pay at the pump and the ability to order something in-store while pumping gas can also be a key differentiator for fuel customers,” said Jeff Hoover, data insights strategist
for Paytronix Systems Inc., a provider of advanced digital guest experience platforms to c-stores. Mobile/touchless options are becoming more of the expectation, particularly so with younger consumers, he added.
Small and independent retailers are also not excluded from hybrid programs thanks to new technology options geared toward the specific needs of these businesses.
One such option is Mobile Food Menu, an online and mobile ordering solution created specifically for independent c-stores. The program gives the c-store operator immediate tools to increase consumer interaction and boost purchasing from the pump to the store; it also has delivery capabilities, according to company CEO Nick Karapetian.
As an example of what can be achieved, he highlighted a c-store operator in Los Angeles with six locations that recently started using the Mobile Food Menu online ordering platform. “They started a digital ad campaign with Coca-Cola brands and in two months, increased their online sales from zero to $20,000 a month,” he relayed. “Their monthly ad budget is $1,200 and their online sales are all incremental to their walk-in business. Mobile Food Menu manages the ad campaigns as well, so we see the results in real-time.”
Consumers Want Local
Understanding the local market is crucial to attracting customers back, according to Zebra Technologies’ Delaney, who pointed out that loyalties to many large retailers have frayed during the pandemic due to stocking issues. C-stores have an opportunity to retain customers by continuing to offer them local items and foods they became attached to during the pandemic.
Local loyalty has increased since COVID, echoed Sam Amrani, founder and CEO of Olvin, an AI-powered solution focused on predicting consumer behavior. “Consumers are staying local more, and the network effect of c-stores in local neighborhoods has become even more centralized,” he pointed out. “C-stores should be looking at what other local retailers their shoppers visit in the neighborhood and link up with them to create cross-promotions that will drive customers to both.”
Campaigns that focus on giving back to the local area are ones that create respect and trust, noted Chris McArdle, chief revenue officer for Smartly.io, a social advertising automation company. He highlighted 7-Eleven Inc.’s recent partnership with The Ammersion Group in Dallas to identify local artists to create neighborhood-specific murals on interior and exterior walls of 7-Eleven stores.
“Brands [showing] their customers a dedication to uplifting each community they have a presence in is a tried-and-true technique that will always attract an audience. In this case with 7-Eleven, it’s not just about
getting back to shopping, but engaging personally with shoppers as this happens,” McArdle said.
Consumers Want Better Loyalty Offerings
Loyalty programs in the convenience channel have traditionally focused on rewarding consumers with future discounts on fuel, food or beverages. But with the introduction of e-commerce and delivery within the channel, retailers must now utilize loyalty programs to differentiate themselves in the marketplace, “grounding their program in their unique and core service offerings, such as quick-service meal solutions, unique products outside of food and beverage, or differentiated private brand items,” said Jean Ryan, senior director of brand strategy and design for Stamford, Conn.-based private-brand consultancy Daymon.
“Promotional marketing of the loyalty program should be built into the retailer’s broader integrated marketing strategy, ensuring that awareness occurs across multiple digital tactics inclusive of mobile, app, website, email and social media platforms with consistent, creative messaging and offers,” Ryan explained.
Continuity is crucial, added Diana Medina, director of e-commerce solutions at Inmar Intelligence, a data and tech-enabled services company. “If you’re transforming digitally and have disconnected experiences between e-commerce, in-store, digital coupon galleries, loyalty programs and media, today’s shoppers won’t stick around. They are engaging across multiple touchpoints, but expect one consistent experience,” she said.
Best-in-class loyalty programs give the most loyal members “sneak peeks” at new limited-time offers, or develop a tiered points system that rewards incremental visits or app downloads, noted Sarah O’Grady, vice president of brand marketing at Vericast, a marketing solutions company.
“But stores looking to establish loyalty programs must be aware that offering free products won’t be enough to inspire action,” she cautioned. “Promotions will remain a key driver for loyal, lapsed and new consumer activation, with true loyalty being earned through quality offers and a seamless shopping experience.”
Consumers Want a New Level of Personalization
With more choices than ever, consumers are looking for offerings that cater to their individual needs. Email marketing is one of the most cost-effective and powerful tools for personalizing offers and driving retention, according to Nick Maglosky, vice president of strategy for Constant Contact, which helps small businesses build their brands online. By establishing a consistent line of communication — especially one that can personalize offers — smaller c-stores can increase retention in today’s market, he said.
One of the byproducts of the COVID-19 pandemic is that shoppers care less about the transactional side of shopping now and more about their desire to be understood as a unique individual.
Because they so value that personal connection with a retailer, John Nash, chief strategy officer at Redpoint Global, a software provider for customer data and engagement, cited that the company’s surveys show that customers today are willing to provide more data to receive a more personalized experience.
However, as customers share more data in exchange for a more personalized experience, data privacy, which is already top of mind for consumers, will continue to be a priority. “A deep understanding of a customer must then include honoring preferences for how their data is collected, shared and used,” emphasized Nash.
Consumers Want Retailers With Values
Throughout the pandemic, consumers shifted from a focus on value to values — meaning they are looking beyond just price and quality when making purchase decisions.
“Consumers have become aware of social injustices and are more apt to hold organizations accountable. When shopping, consumers will be looking for brands that hold similar values to them, and it will be important for retailers to be purpose-driven,” Read said, adding that it will also be important for retailers to relay their values to consumers through messaging.
There’s increasing emphasis on identifying and connecting with a retail brand’s corporate values, Vericast’s O’Grady agrees. “Today’s consumers will give loyalty to the brands that communicate what their brand stands for.”
Vericast’s 2021 Consumer Intel Report revealed that 52 percent will buy from/shop at companies whose values match their own. CSN
GPM’s Pandemic Lessons
The retailer shares what it’s learned and how it’s attracting customers back
For one U.S. convenience store chain, meeting the changing needs of customers during the COVID-19 pandemic has been like a fast-paced dance.
“[The pandemic] kept us on our toes, fielding challenges we never experienced before,” Michael Bloom, executive vice president and chief merchandising and marketing officer at GPM Investments LLC, a wholly owned subsidiary of Arko Corp., told Convenience Store News. “We learned a lot as a retailer and were able to adapt and respond quickly in a very unique environment.”
Early on, the Richmond, Va.-based retailer sourced suppliers from different countries to provide hand sanitizer, masks, gloves and liquid soap to help keep its customers and employees safe. COVID-related adaptations evolved from there, resulting in permanent merchandising and marketing changes that are still continuously being monitored, tweaked and refined.
Bloom shared the followed lessons learned and ways GPM is attracting customers back:
• Go big on pack sizes. Over the past year, GPM has seen shoppers make fewer trips and stock up on larger sizes of basics and consumable items.
• Increase prepacked fresh and frozen food. This lesson happened for GPM simultaneously with a slowdown in in-store food items that were not packaged. To meet this prepacked demand, the chain is adding freezers and graband-go coolers to approximately 585 and 650 stores, respectively, according to Bloom. Also, a packaged value chicken sandwich was added to 150 stores.
• Revise your dispensed beverage assortment. Now that the dispensed beverages area is back in business, flavors are being tweaked and retested in a space that is receiving “extra cleaning,” he noted.
