SMALL OPERATOR
small chains, brands can’t afford to ignore this market. And as CPG brands look to optimize this space, technology will meet them there, which is a big win for smaller retailers,” he relayed.
Loyalty in Focus One of the main methods large c-store chains use to retain customers is a loyalty program. According to Punchh, 43 percent of c-store shoppers choose a specific convenience retailer because of its loyalty program and more than 70 percent of shoppers increase visits to that retailer if they are members of a given loyalty program. Stout’s No. 1 piece of advice for smaller operators is to add a loyalty program because it will allow them to invest in their customers and get to know them on a one-on-one basis. Loyalty programs also enable small operators to invest in things like inventory control, supply chain solutions, and tools to help them target customers to drive more sales, she points out.
“Loyalty solutions absolutely can work for smaller c-store operators if they make careful and conscious choices about the solution that matches their business needs.” — Lori Stout, Punchh
“What are your highest margin products? For example, average tobacco market basket sizes are larger than market baskets without tobacco products, and more than 25 percent of c-store shoppers purchase a packaged beverage item with a tobacco item,” Skupos’ Bolling noted. “Running lucrative promotions like twofers on higher-margin packaged beverage items can increase those basket sizes even further.” Finding vendors that provide access to promotional programs, encouraging impulse buys and targeting different types of shoppers can help further move the needle. Small operators can gain access to exclusive brand-funded promotions that are usually only available to national chains via platforms like Skupos, according to Bolling. “As two-thirds of sales in the c-store market occur in independent stores or
“Loyalty solutions absolutely can work for smaller c-store operators if they make careful and conscious choices about the solution that matches their business needs,” said Stout. “Before implementation, c-store retailers should evaluate the various solutions out there and design one that not only motivates customers, but also drives profitable incremental behavior from their most frequent visitors.” The ability to know the customer is beneficial not only for sales, but also for the overall operation. Loyalty programs can help mitigate the risk of having excess product. “[C-store retailers] can use data to help run a more seamless business model and one that puts craveable products at the consumers’ fingertips and creates an experience that is truly memorable and enjoyable. Loyalty programs are built to deliver that to you and your customers,” Stout said. If a loyalty program proves too cumbersome for a smaller operator to implement in terms of time and/or investment, every retailer should still know who its most loyal customers are. Even without a loyalty program, this information can be used to create an email marketing campaign to stay in touch with these loyal customers and personalize their experience. A service like Mailchimp is an effective way to create an email campaign, Orsbourn noted. “It is not a traditional loyalty campaign, but what you are doing as an independent retailer is treating your most loyal customers in a different fashion,” he said. “It means you have an initiative in place to reach out to customers and you’re trying to grow that consumer base.” Finding the time to create these campaigns can be a challenge for a smaller operator, Orsbourn acknowledged. But today’s gig economy can provide a cost-effective solution. The bottom line is that as consumers increasingly adapt to a more technological and personalized world, retailers will have no choice but to adjust their marketing plan accordingly. The good news is that technological solutions can help deliver additional revenue and savings to a retailer’s bottom line, meaning the investment pays off in the long run. “Not only do technological innovations help brands market to their guests in a more impactful way, [but] many can be designed to operate with small teams that continue to have limited bandwidth,” said Stout. “With the right solutions partner, you can evolve to meet the needs of your customers while also managing operational expenses.” CSN
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