Delivery has become a hot trend throughout most consumer industries. Amazon Prime Now is delivering more food and other essentials to customers across the country, Starbucks is flirting with delivery, McDonald’s is partnering with Uber Eats, and even 7-Eleven has begun beer delivery in some states.
Given these developments, should convenience stores begin offering delivery? And if so, how should they do it?
It’s no secret that consumer demand is driving the push for delivery. In fact, 52% of millennials would buy from c-stores more frequently if delivery options were offered. And as the generations preceding millennials continue to age, they’ll rely more on delivery as well.
The increased competition comes from both inside the industry – with mega-chain 7-Eleven exploring its options – and outside the industry – with behemoth Amazon moving into the traditional c-store space. Convenience stores may be facing an “adapt or die” proposition, and there are a number of issues that should be addressed before delivery is offered.
First, c-stores need to decide whether to build their own delivery infrastructure or rely on third-party delivery companies like Uber Eats and GrubHub. […]
Convenience stores can’t take advantage of every trend that comes along, but when one promises to be a $2 billion opportunity by 2022 and could easily be stocked in c-stores, it’s time to pay attention.
CBD, a non-psychoactive cannabinoid in the cannabis plant, has been garnering considerable attention and consumer spend over the past few years. Increasingly popping up in things like oils, gummies, and vapes, CBD could also represent a significant opportunity for convenience stores.
Is It Legal for Convenience Stores to Sell CBD?
Passage of the 2018 Farm Bill legalized products made from hemp as long as it contains less than .3% THC. The status of CBD, however, is a little murkier.
Some states have outright banned CBD, some allow it, and others consider it to be in legal limbo. But that’s not stopping major chains from jumping on the bandwagon, as both CVS and Walgreens have announced that they’ll be selling products containing CBD in stores across at least eight states.
The legality of selling CBD at a convenience store depends on the location’s state laws, but with CBD products rising in popularity, it’s likely that many of those laws will be changing over the next several years. It would benefit convenience stores to be ready.
Who Would Buy CBD from a Convenience Store?
Not surprisingly, CBD is largely being purchased by the trendsetting millennial generation, which extols its relaxation, sleep, and overall wellness benefits. […]
Facts and figures are easy to come by for any guest engagement platform, be it loyalty programs, e-club programs, or CRM. But what are the key measures that marketers can rely on to deliver material impact with the customer engagement program? Running more than 350 programs has provided Paytronix with a clear understanding of what works and what doesn’t, telling us where to focus effort for the greatest impact.
To remember the most important measures, use the acronym EAT. It stands for Enrollment, Activity, and Triggering. Plus, there’s an additional measure called Penetration Rate. Consider how these four measures impact your guest engagement program:
- Enrollment: Adding new members drives program impact. Although some members will inevitably move on from your brand for a variety of reasons, the key is to add more than you lose. Enrollment can be encouraged through numerous marketing strategies, including promotions and cashier contests. You should also make it easy for guests to join by offering mobile apps, text-to-enroll, NFC loyalty, and website enrollment.
- Activity: It takes active members for a program to maximize its potential, and the level of activity provides a multiplier effect on the amount of impact. Having a frictionless, guest-centric, fully supported program will result in a high percentage of active guests. Your program should offer attainable benefits and make it easy for guests to interact with the brand. Implementing well-thought-out customer engagement strategies will provide the best results on your program’s success.
- Triggering: The extent to which your team can trigger incremental spending is directly related to the impact your program delivers. Incremental spending is primarily measured in two ways, with the first being an analysis of pre- and post-program transactional data. How were the members behaving before the program launched and what are they doing post-launch? Typically, Paytronix programs see at least a 20% increase in spend after the launch happens.
The other way to measure is by using target-and-control campaigns. These enable the marketer to hold a control group out from the targeted segment. When results are reported, a clear picture of incremental spend and visits comes into focus. The control group behaves as it normally would, while the target group exhibits the behavior prompted by the marketing message or special challenge presented. Target-and-control programs answer the question that CFOs have been asking CMOs for years: “How many of these guests would have visited anyway?”
- Penetration Rate: The percentage of checks associated with a guest who identified as a member is the penetration rate. This is an important measure because the higher the penetration rate is, the more opportunity the brand has to drive impact with the program. If the penetration rate dips below 15%, the brand should be alarmed, as programs with low penetration rates generally underperform on all organization expectations. Paytronix clients routinely achieve penetration rates of 47–70%.
Brands that focus on these four measures deliver the greatest impact to their organizations. Visit us at www.paytronix.com to learn more.
Most things about marketing and running a business aren’t easy. There are very few “set it and forget it” tactics that yield any real results. Which is why we’re so pleased to bring you four promotions that you can set up and let run in the background to generate perpetual visits and results!
These aren’t quite “set it and forget it” methods since nothing about your program should be forgotten, but they’re a great way to ensure that you’re constantly generating visits from your program members and, of course, constantly increasing your membership base.
Let’s start out with why “running promotions”—or programs that continue in perpetuity—are so important to the success of your convenience store loyalty program.
First, while big launches make a huge splash and can create an impressive spike in your metrics, that spike only lasts so long. After the promotion ends and the signage is taken down, any customers who didn’t join and any new members don’t know anything about your program.
Similarly, special promotions only last so long. An increase in spend or visits during a designated promotional period is certain to taper off once that promotional period ends. […]