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out a monthly fuel subscription program, RaceTrac Rewards VIP, in 2020. For $2.49 a month, RaceTrac Rewards VIP members can save 10 cents per gallon on their first 40 gallons and 3 cents per gallon thereafter.

RaceTrac Rewards VIP is a premium add-on to RaceTrac’s standard loyalty program, RaceTrac Rewards. VIP members receive discounts at the pump in addition to various coupons and promotions on RaceTrac’s in-store products.

Paytronix’s Hoover encourages other c-store retailers to explore the subscription space. And he noted that rather than subscribing for a specific product or service, it could be an added benefit like a special pickup location or curbside pickup for premium customers.

“I think retailers have to treat this as a true product area that they’re going to grow and expand in the future,” he advised. “At least, consider doing that because I think we’re inevitably going to see c-stores and many other restaurants do similar things, especially if it’s a special window or counter that you go to pick up your things that costs nothing for you as a retailer, but as a customer I get to skip the line.”

A Mutually Beneficial Service

A subscription program can be a win-win for both the convenience store retailer and the customer. A heavily frequent visiting customer or even a moderately frequent visiting customer who pays between $5 and $10 a month for a subscription service and comes into the store five to 10 visits per month is getting a value, Hoover pointed out.

On the other end of the equation, when a customer signs up for a subscription, they are more likely to continue visiting that retailer for fuel and in-store purchases.

“I think that’s why retailers are doing it. Customers pay for a subscription and make a left instead of a right or drive the extra few blocks to your store,” Hoover explained. “It’s a subliminal message. I think that helps capture more of those visits. I think that’s why the retailers are doing it [based on] what they’re hoping to see and what we’re actually seeing in the data.”

It’s also about driving enrollment into a retailer’s loyalty program.

“Customers who weren’t in your loyalty program before all of a sudden see value in joining a subscription, which entails them to join loyalty,” he added. “We are seeing even mature programs benefit from acquisition of new customers by having new value in the program, even though it’s something they’re paying for.” CSN