Pumped-Up Connections

The future of the fueling experience can be spelled m-o-b-i-l-e

By Melissa Kress

MUCH OF THE conversation about forecourt technology has centered on outdoor EMV compliance, and rightfully so. Now, with one year passed since the compliance deadline, some retailers are still working to get up to speed, but the conversation has also shifted to other innovations.

If retailers are investing in upgraded pumps, why not look for new solutions to bring along?

One of the more compelling topics on the forecourt is mobile payments, according to Brad Bossert, director of sales and marketing at Bulloch Technologies, an Ontario, Canada-based provider of petroleum point-of-sale (POS) systems.

While there are still many customers happy to use credit cards to pay for fuel, Bossert believes the industry will see a rising number of mobile transactions at the pump.

Making the Case for Mobile

Mobile is something that P97 Networks LLC, one of Bullock Technologies’ partners, knows well. Houston-based P97 provides secure, cloud-based mobile commerce, in-vehicle payments and digital marketing solutions to the convenience and fuel retailing industry.

P97 CEO Don Frieden reports that the company’s mobile transactions have grown 6.8 percent since January 2020. “Consumers are interested in using mobile devices to find

locations and transact at those locations,” he said during a recent webinar hosted by member-driven industry technology organization Conexxus.

Monthly mobile transactions per user are also up. Compared to card companies’ data — which reports 1.6 to 1.8 transactions per month for the same fuel brand — mobile transactions come in around 3 transactions per month, according to Frieden.

“These will be your most loyal customers once you get them converted to a mobile app,” he said.

In 2021, NACS reported that the top 10 percent of convenience channel retailers saw fuel margins of 40.36 cents per gallon, which was 26.9 percent higher than the bottom 10 percent of retailers even though top performers priced fuel 8 cents per gallon higher. This suggests top performers are “better able to target discounts integrated with payments,” Frieden explained, noting 69.5 percent of fuel sold on the P97 mobile platform in 2021 was discounted.

Gallons purchased per fuel transaction on mobile come in at almost 12 gallons.

Advances in Mobile

Mobile is driving retail innovation across the industry.

“When you start thinking about mobile payments, it is more than just thinking about replacing card swipes, but actually allowing consumers with smartphones or connected cars to make payments for fuel or EV charging or even merchandise,” Frieden said.

Mobile payments are also moving toward voice-activated payments in virtual systems, he noted, and payments with super apps like Venmo are becoming popular as well.

Additionally, mobile platforms can help convenience retailers with the energy transition by replacing fuel-focused experiences with electric vehicle (EV) charging and hydrogen fueling experiences through mobile apps and connected cars, leveraging a technologydriven, customer-focused approach, and putting convenience in the palm of the customer’s hand. EV charging is a new category that P97 is focused on. This comprises payment; loyalty rewards and targeted offers not only for EV drivers, but also for fleet platforms as more fleets move toward EV; and billing, subscription and roaming services.

Media at the Pump

Moving forward, Bulloch Technologies’ Bossert also expects to see big things at the pump in the form of bigger screens that can bring advertising and promotions to fuel customers.

“Everyone is working to get advertising content there,” he said of media platforms on the forecourt. “It is all geared at enticing the customers into the stores to buy that can of pop.”

Another service that could be on the horizon for the forecourt is lottery at the pump, although Bossert points out “this comes with its own uniqueness.” For example, customers would receive the lottery ticket via email or text and not a printed ticket.

Pump-screen ordering is another possibility. The ability to integrate this interactive process depends on what a retailer’s POS system does. Pump-screen ordering also has to work on a touchscreen in all regions and all weather, from Alaska to Florida.

“The capability is already there, but I see more [forecourt technology] around mobile and prompting the customers to go inside the store,” Bossert predicted.

Bethlehem, Pa.-based Square One Markets Inc., which operates seven c-stores in northeast Pennsylvania, has been an early adopter of pushing content out to the forecourt.

Square One Markets President and CEO Lisa Dell’Alba said she’s always been bothered by the fact that there is a significant portion of the retailer’s customers that the employees never see.

“So many folks come to the forecourt, they fill up their car, they interact with the dispenser, and then they leave,” she said during a recent fireside chat with Conexxus Executive Director Gray Taylor. “That’s the only representation of our organization, our business and the way we go to market.” Just like inside the store, controlling what those customers are seeing and how they interact with the brand is key for small businesses, she relayed.

“It’s really important as a small business to be able to say this is what sets us apart for those customers that are just not coming in,” she said, adding that Square One Markets has been fortunate to work with a great partner to push out content.

The move is bringing customers in, even if they sometimes come in for free offers. “That’s OK,” Dell’Alba said. “That’s probably the most active campaign we have on the dispenser is offering a free coffee. It really just gives us an opportunity to interact.”

It’s 2022--Retailers have recognized the value of selfcheckout technology and the benefits it will bring to their stores including easing labor shortage problems, improving the customer experience, and, of course, increasing the bottom line. Now you need to consider how to deploy your self-checkout to best suit the needs of your stores and your customers; the big question is— do you automate cash, or go completely cashless?

You may be leaning toward cashless—it’s less costly upfront, and card payments seem more like “the future.” Let’s examine that assumption—can you get the full ROI you expect from your self-checkout without adding cash? First consider from the perspective of the speed of service; self-checkout will move your customers through the line faster and eliminate long lines at peak times of day. If you’ve only automated cashless payments you haven’t solved the complete problem, and will not be able to repurpose cashiers to take on additional store related tasks, like cleaning, stocking shelves, etc. Stores that struggle with staff shortages will find relief by allowing their customers to checkout without their assistance, ensuring only one cashier is required to ring up ageverified products.

47% of all purchase values under $25 are paid in cash Next, think about your customer’s experience. For the average purchase in convenience stores, consumers overwhelmingly choose cash; 47% of all purchase values under $25 are paid in cash. The percentage of cash usage in your stores may be even higher given that the average c-store transaction is between $3.75-9.00; recent studies report around 40-50% of purchases are made in cash. In addition to preferences, the Federal Reserve estimates 20-28% of the population is currently “un-banked,” or “under-banked,” and do not have access to card payments. Cashless only self-checkouts could lead customers to perceive unfairness—why should they wait in line while the card paying customer can breeze right through? It’s not worth the risk alienating such a large portion of your customers.

Card-only self-checkouts will still require a cashier to handle all cash payments, increasing the likelihood that lines will continue to be long at rush hour, and risk customers walking out without purchasing. 41% of customers will abandon their purchase if they see a long line, and one bad experience can sour customers on your entire business. Almost half of consumers avoid a specific store if they have to wait longer than 5 minutes. No one wants to lose business due to customer dissatisfaction, and these lines can be effectively eliminated by deploying cash automation with self-checkout.

41% of customers will abandon their purchase if they see a long line

Lastly, cashless processing isn’t always as cheap as it seems to be. There’s a good chance cash payments cost less as a percentage of your revenue than cashless. Driving customers to cashless may actually increase costs and negatively impact profit margins.

In order to fully reap the benefits of your self-checkout deployment you need to include both cash and cashless payments. Cash automation makes it a well-rounded solution and delivers a superior ROI for your business.

Experience seamless self-checkout now. Visit Learn.cranepi.com/C-StoreSCO

Gaining Reach & Scale

Detroit-based GSTV entered the retail media space back in 2005 when it launched as Gas Station TV. Twelve years later, it merged with Verifone Pump Media to form GSTV, a singular national video network. Today, the data-driven network reaches one in three American adults monthly with full sight, sound and motion video during the fuel experience.

In March, the company upped its game with the debut of AMPLIFY.

“For a lot of [CPG] brands, convenience is a very popular retail channel for driving sales growth and as they look at their topline sales growth initiatives, convenience is a great way to do that. Convenience store retailers are also looking to drive customers into the store,” explained Kristal Walton, vice president, CPG, who is leading the launch of GSTV AMPLIFY.

“AMPLIFY is an evolution of that — ways we can partner with brands to support them and drive people into the store to

“When you start thinking about mobile payments, it is more than just thinking about replacing card swipes, but actually allowing consumers with smartphones or connected cars to make payments for fuel or EV charging or even merchandise.”

— Don Frieden, P97 Networks LLC

either buy something incremental to what they already planned to buy or to get them to buy something when they weren’t planning on going into the store,” she added.

GSTV’s Dan Trotzer, executive vice president, industry, pointed out that the company’s content strategy has changed over time, migrating from the standard news/ weather/sports to a more web and digitally based quick-bite entertainment platform.

“So many folks come to the forecourt, they fill up their car, they interact with the dispenser, and then they leave. That’s the only representation of our organization, our business and the way we go to market. … It’s really important as a small business to be able to say this is what sets us apart for those customers that are just not coming in.”

— Lisa Dell’Alba, Square One Markets Inc.

“We’ve always been doing research to understand what is working, what is engaging consumers, and what is of value to both the retailer and our advertisers,” Trotzer said. “Part of what AMPLIFY is about is doubling down on making sure GSTV is providing value to the [CPG] brand advertisers, which are directly aligned with the interest of our retailers.”

GSTV has more than 28,000 active sites today, as well as roughly 44,000 under contract and in the process of deploying the hardware and the solution. GSTV manages the programing from end to end and works with the individual retailer to make sure there is content specific to that location, in addition to regional and national brand content from the CPGs. The content can be segmented by daypart or by season.

“The smaller operator does not necessarily have a marketing and merchandising staff; they are wearing all the hats. Our retailer success team is charged with being, to the extent they can, that resource for the retailer. They follow trends and trade articles for things that are regional, popular, and make recommendations for the types of things we can put on-screen,” Trotzer noted.

Seasonal messaging is important and lets consumers know the content is fresh. “If you play the same thing over and over, particularly in an experience that people are going to have three times a month, you don’t want it to be the same thing month over month. It loses its impact. That freshness and updating of contact, and doing it in a scalable way, is key for the retailer,” he said.

Media at the pump works well for CPG brands that already have a presence in c-stores, and those looking to break into the channel. On the retailer side, just as difficult as it is for a brand to reach the independent convenience store owner, it is equally challenging for an independent retailer to get the attention of national CPG brands to get their brand message to their site.

“It’s a nice two-way street,” said Trotzer. “They benefit from being a part of something bigger, and the brands now have a single point of contact to be able to reach that very valuable convenience shopper.”

The GSTV executive also sees mobile as the future of media at the pump.

“There is more flexibility on the mobile side, and we are interested in helping retailers take advantage of that. In the same way we have aggregated all these touchpoints on screens at the forecourt, we can also aggregate audiences through mobile and bring that to our advertisers as well,” he said. “It is evolving and going in a lot of exciting places beyond bringing that fuel customer into the store.” CSN