1. How to Define the Program
2. Success Factors with New Technology
3. Culture is the Basis of Loyalty
4. Brand
5. Loyalty in Onboarding
6. Preparation – Before You Start
7. Lessons Learned

How to Define the Program

The first thing is to define what type of program you want. For example, is it a points program, a club program, fuel program or a combination of multiple features. Define what you want to deliver before you choose the platform. Further get buy-in starting at the top of the organization. Make sure they understand all of the keys to success for loyalty.

Success Factors for Loyalty

Real loyalty is about the customer experience in the stores. The technology multiplies and supports the experience. Without a great store experience, however, loyalty will not succeed. It must be a genuine relationship. Cerra recommends implementing with the store managers but working with all aspects from the company – marketing, IT, HR – all parts. Integration of the technology and the culture are necessary. The benefit, however, is that the sales and profits grow dramatically, with a genuinely loyal customer base.

Culture 

Culture is all about the people. When we take care of our people, they take care of our customers. I am not focused on the loyalty. I am focused on the culture. We foster the mindset of the customer experience. Each time we clean the bathroom, as we train our staff on our purpose, even with upselling, we must make sure we teach and live the importance of taking care of the bathroom. We believe our work is to serve our customers. We cannot just drive the numbers, we must live the ‘new way of thinking’ to serve. 

Brand

People want to do business with companies they feel good about. They want to know we are giving back to the community, we are consistent, safe and a place that customers want to enjoy. Driving the consistency is critical to our growth. We cannot market around a bad experience. We must make our brand promise match what really happens in the store. It is the way people feel about your brand that is truly your brand.

Loyalty in Onboarding 

When acquire stores we must keep the staff and the community connection. At the same time we must make sure our culture is onboarded. Change is so hard for people so we must be careful to share our culture and respect the community and team relationships that are in place. The new staff must be comfortable with how we serve our customers or they will not buy-in to our culture. The reality is that our loyalty is in the store. Our loyalty program and technology enhances the customer relationship. It only happens when it is real in the stores.

Preparation – Before You Start

After building a few programs, one of the most important things to share is what to avoid. The plan for should address all 7 key parts to c-store loyalty systems. Do not rush the start. Get the plan right. Build the program for long time success. It cannot only be about speed to market. Being absolutely ready is critical. Specifically, there are a few essentials: having buy-in, not forgetting the other departments impact on the loyalty and the loyalty impact on them. It is worth the extra time to share, train and set the picture so everyone knows their role. These programs need to last five to ten years. Taking things away from customers can hurt the loyalty.

Lessons Learned – Keys to Success for Loyalty

Start and test in a small way before you roll it out. The cost and pain of not having the program fully prepared is high. Always test it first. Addressing these keys to success for loyalty gets results and makes keeps the program viable into the future.

Watch the entire video with Abigail

Blogs Related to the Keys to success for Loyalty

Building a System to Develop C-Store Management to Drive Culture, Live the Brand and Create Growth

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Cigarette margins are not as high as other products, but the volume is so high that money can be made. Using tobacco rebate programs allows any dealer to compete on price without having to sacrifice all the margin. The tobacco manufacturers will use the tobacco scan data to validate sales and reimburse discounts to c-store operators. Thus, the cigarette margins are maximized.

Competition Uses Tobacco Scan Data Incentive Programs

The large chains are using the tobacco scan data incentives already. If you do not have this program, you have one less reason for customers to visit your stores. Customers are well aware of the programs and know the price. Tobacco is a big expense and they look for value. 

Traffic for Tobacco Drives Visits

One of the big reasons for repeat visits is the regular purchase of tobacco. Getting fuel often happens on the same visit. Losing sales for one item will likely create the loss of fuel sales. Further, getting fuel buyers into the store is an important driver for overall sales success. It is important to avoid losing customers to larger chains that have tobacco clubs or incentives that you cannot match.

Tobacco Customers Buy a Lot of Stuff

Cigarette, snuff and cigar smokers are great customers. In addition to keeping traffic for fuel, they also purchase a lot of other things like energy drinks, soda, and beer. Numerous studies show the high value of these customers that not only visit frequently, but also buy other products. Of course, the other products have even higher margins. These customers are important to c-stores.

Altria and RJR Marketing Support

Altria and RJR provide many incentives that are only available to participants in the tobacco scan data incentive programs. There are three tiers available and each tier, while adding some complexity, brings additional discounts and competitive advantage for your stores. Many scan data providers have options for independent c-store dealers and family chains that provide a simple approach to age verification and loyalty.

To summarize the key reasons for tobacco scan data incentive programs:

• independent and family chains stay competitive,
• maintain solid margins,
• hold onto traffic and
• increase basket size with these programs.

Contact your scan data provider and verify you will have all the programs you need in your market. Top scan data providers deliver training and support. The tobacco loyalty and rebate programs are complicated. The scan data requirements are strict. As such, understand the experience and support included with the service. Before you move forward, confirm you have necessary support to comply with all the submittals requirements. Ask about their availability to setup the programs in the price book, meet with your tobacco reps and address all the technical processing.

More Information on Tobacco Scan Data:

• Tobacco scan data programs 
• National Drug Helpline
• Interview with Amber regarding promotions and other sales management items

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Choosing Loyalty Technology – Playing Nicely Together

Retailers not offering the extra $1.00+ (per 2 pack/can/tin) coming from Altria/RJR loyalty programs are typically doing so because of technological conflict or limitation. These retailers take a hit in the form of losing customers and the associated sales that follow tobacco purchases. At 25 to 30 percent of inside sales, Altria and RJR loyalty is a critical part of C-Store success.

Retailer operators have a few avenues when looking to offer tobacco loyalty to their customers

1. Choose one of multiple loyalty programs to apply to tobacco purchases
   1. Gas Cards,
   2. In-House Rewards,
   3. Other Potential for conflict
2. One universal loyalty. One loyalty may be the best case scenario, but there can be challenges.  It can be very expensive, it can take months to fully launch and it may not integrate with tobacco rebates. It is necessary to ensure your scan data processor can integrate any loyalty, while also achieving ongoing validation for both Altria and RJR.
3. Simple Loyalty as a method to overcome the obstacles
   1. Provide a phone number only loyalty option that does not interfere with pump based loyalty configurations.
   2. A few scan providers provide stand-alone tobacco loyalty that works along with branded and other loyalty providers.
   3. Retailers can utilize this option while building out a single loyalty program, which can take several months or more.

Starting the Process – is a choice between gas and tobacco loyalty necessary?

With all of the promotions and categories to manage and track, it’s understandable to want to have one system. Sometimes, it takes more than one to make it all work depending on the technology in place. There, ask your loyalty and scan data provider to discuss the challenges. It is easy to track if they are successful – they will have references and can provide a test case. As such, many operators run a pilot as proof of concept. Those providers that have done it will have an established process. In order to avoid expensive programs, the pilot allows a smaller test case. The cost of lost customers from your fuel, tobacco and other special deals is too great to give up.

For more information in related blogs: ‘Should you be moving forward with RJR promotions?’

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Three Key Ways Scan Data Increases C-Store Sales and Profits

1. Reduced prices for multi-pack, multi-can, multi-tin, sales reimbursed by the manufacturer – lower prices for your customer with the same margin
2. Additional loyalty discount for customers using your loyalty program that purchase multiple packs, cans, tins or pods during the special period.
3. Sales from other goods that comes with customers that buy tobacco. Stores see more traffic as a result of having the best prices for key tobacco brands.

Why Moving Forward with  RJR Scan Data Promotions is a Key 

While Marlboro dominates the national cigarette sales, RJR provides the next two top selling brands – Newport and Camel. Depending on markets many stores have heavier Marlboro or Newport sales. In some limited cases Newport movement is not significant. Even in these markets, however, Grizzly tends to be a large part of the snuff market share. Hence, having the RJR promotions tends to represent 25% to 50% of a stores overall tobacco sales.

Tobacco purchasers buy more than just tobacco

It is not just about the profits from tobacco – retailers are also looking to keep traffic and overall sales from these important buyers. Studies vary, but convenience experts agree that tobacco buyers are a key consumer in most stores. When the promotions are reimbursed rather than self-funded, this alone is typically enough to justify the program. Offering promotions which will be paid back, to a key group of buyers (the RJR loyal) – the cost of the sale comes down to the time value of the money. Except for the most cash-strapped operations, tobacco rebates are essential marketing.

The secret to RJR Scan Data Loyalty and Multi-pack Success for C-Stores

Knowledge is the key. RJR rep are the first place to visit. She or he will register you and ensure your scan contract is in place. After that, you must fulfill the process. Many retailers fail to complete the process and bailout of the promotions before they even get started.

Retailers who are most successful with RJR scan data have a good third party provider or an in-house manager (or even both) with a deep understanding of the RJR and MSA process. While registration, certification and final validation takes weeks, good communication and a sound understanding of next steps means success. A good provider will have a history of consistently getting clients validated and certified.

These operators are able to take advantage of the greatest number of incentives through RJR, while maintaining their validation status, and getting paid. Meanwhile, marketing and operations will focus on other creative offers and upsells at the register.

The program generates value and the best third-party-processors ensure the process is understood. They make the data valid. The RJR scan data rebates take a few more weeks to accomplish. RJR uses a robust validation process. Therefore, the process ensures great results for your stores. It means you know you will get your promotions. The resulting benefit – it makes it great C-Store operators earn new sales. Even better, RAI (RJR) pays for it!

Make sure to ask your processor for references. Those that have validated RJR will have a lot of happy customers that are willing to verify the RJR results.

Related Blog – The Key to Increasing Cigarette Sales is Multi-Pack Discounts

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Up-selling is the Key to Increase Cigarette Sales with Multi-Pack Discounts

Lowering the price increases sales. The multi-pack discounts are funded by the manufacturer. These discounts are above and beyond the existing buy-down and other contractual programs you have now. You must make a separate scan date agreement with each of your cigarette representatives for Altria and RJR

You ensure your margins by processing the information correctly. Many scan data vendors provide the scan data processing at a low price. If they do not process the multi-pack and loyalty payments, however, the funding for the discounts is paid by the retailer. This means, only when your scan data multi-pack discounts are submitted correctly are you sure to get all your money. Hence, it is critical to ensure your processor is able to collect all the data. Furthermore, they must provide it to the processors so that the retailer receives the discount payments. Finally, it is a lot of money, make sure you have a partner that will work with you and your manufacturer to get all that you are promised.

Cigarette Scan Data Processing Keys to Success

1. Scan data includes all the multi-pack information for both the Altria and RJR program
2. The vendor applies your specific multi-pack discounts based on your POS processing
3. Your manufacturer has included you in the multi-pack program
4. Your processor knows how to resolve certification delays or data problems.

Of course, you can sell more if you discount the price. Naturally, you can up-sell more easily when the customer gets a great value. With great pricing, they will visit more. The program works, make sure you have a partner that will help fully.

A cigarette rep that knows the program helps you get started. Make sure your processor understands the details of all the different rebate issues. They should have a  track record of getting full payments for their clients (i.e., carton, multi-pack and loyalty). Of course, it helps to be able to contact a knowledgeable person who will help you get it done. Sometimes the program and technology can be a bit frustrating in the beginning. Find the right partner and make it happen. These are the reasons that many argue that the key to increasing cigarette sales is multi-pack discounts. They drive more sales and save your customers a lot of money.

Cigarette Scan Data Has Three Parts

1. Basic file submission for up to 10 cents a carton
2. Multi-pack certification
3. Loyalty processing certification.

C-Store Scan Data – Related links

If you enjoyed this blog, you can find more information in these links:

C-Store Cigarette Scan Data Software Increases Tobacco Sales

Increase Cigarette Sales 10% and more!
C-Store Cigarette Scan Data Software – Product Information.

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