NEWTON, Mass. — The new “Reward Yourself” function on the Paytronix-branded mobile app lets convenience-store loyalty program customers redeem rewards of their choosing. With the new mobile feature, brands give customers the ability to browse a catalog of rewards and decide for themselves how they want to bank and redeem their program points.

This and other new Paytronix Systems mobile platform capabilities will be unveiled at the upcoming Paytronics User Experience, or PXUX 2017 customer meeting, Sept. 13-14, in Denver.

Paytronix links c-stores’ points-based rewards programs through their mobile app back to an online catalog. There, members can shop for everything from a sweepstakes entry to win a gas card or tickets to a Lady Gaga concert, or simply redeem their points for a hot beverage, chips or Red Bull, for example.

Retailers can also leverage the Reward Yourself structure to partner with CPG vendors on new-product promotions. For instance, they could drop the number of points required to redeem a new candy bar from 1,000 to 100 and influence customers to sample the new product.

“The Reward Yourself capability helps Forward Corp. create an aspirational and versatile program that gives members visibility into multiple reward options,” said Emily Mallory, chief marketing officer for retailer Forward Corp., Standish, Mich. “It gives our customers more autonomy by allowing them to decide which reward they will be banking their points for. The ability to spend/save points for larger reward options has been a huge improvement to the overall program.”

“Paytronix has been working with restaurants for years on their bankable point programs, and now we are delighted to bring this expertise to c-stores,” said Joel Udwin, mobile product manager for Paytronix Systems. “A branded Paytronix app with our ‘Reward Yourself’ capability is a terrific way for c-stores to engage customers in their bankable point programs.”

Newton, Mass.-based Paytronix Systems‘ proprietary guest engagement platform helps more than 300 restaurant and retail chains manage and grow more than $18 billion in guest spend. Customers benefit from big-data consumer insights that Paytronix generates from one-to-one engagement with more than 165 million loyal guests through mobile, social and digital marketing tools. As a result, customers can more effectively segment and motivate their guests to increase spend and drive revenue, according to the company.

PHILADELPHIA — Stuzo, a leading digital product innovation firm focused on connected commerce, announced that it has launched a suite of technology assets and mobile-payment solutions aimed at helping fuel retail and convenience-store operators bring mobile commerce solutions to market faster and with lower up-front investment.

“The vast majority of retailers we speak with have told us they want to address the needs of their mobile customers. However, for many, designing and launching a fully custom mobile commerce solution costs too much and takes too long,” said Gunter Pfau, CEO of Stuzo. “We set out to address this challenge by investing thousands of hours in building a set of technology assets, which are designed to accelerate the delivery of purpose-built mobile commerce solutions. And, I am proud to say that the release of the Stuzo Connected Application Assets allows for Stuzo to reduce delivery time and up-front cost by up to 50% compared to alternative solutions.”

Stuzo’s Connected Application Assets consist of a set of proven, prebuilt, market-tested application components for iOS, Android, connected car and wearables, integrated with a set of predesigned UX flows and UI components utilizing Apple Human Interface Guidelines and Google UX best practices in order to deliver mobile commerce experiences that are preoptimized for performance and ease of use.

“Our assets empower the rapid delivery of connected commerce solutions that increase customer visit frequency and average transaction value per visit at the pump and in the convenience store,” Pfau continued. “Furthermore, Stuzo is the only provider serving fuel and convenience retailers with an agnostic technology approach and a proven capability to integrate with major MPPA / mobile commerce cloud providers, such as FDC’s uCom, P97’s PetroZone, PayPal’s Paydiant, or its own Open Commerce reference architecture and assets. The combination of these assets and capabilities drive significant business value to our convenience and fuel retail clients.”

Earlier this year, Stuzo also launched the C-Store Digital Ranking Platform, a ranking platform delivering a comprehensive set of research on the digital capabilities of fuel retailers and convenience-store operators. Relevant data is updated on a weekly basis and syndicated across leading industry publications.

Philadelphia-based Stuzo is a digital product innovation company focused on the convenience store and fuel retail industry, with offices in New York and Europe. Stuzo helps organizations humanize technology by designing, defining and delivering digital products that drive business outcomes.
 

CAMARILLO, Calif. — After 11 weeks of decline, the U.S. average retail price of regular-grade gasoline rose 1.04 cents per gallon (CPG) in the past two weeks, according to the most recent Lundberg Survey of approximately 2,500 U.S. gas stations. The July 21 price is $2.3189, and sits nearly a dime above its year-ago point.

During the two weeks, oil prices strengthened a little, due in part to a weaker dollar, and higher renewable identification number (RIN) prices helped pull gasoline prices higher.

The pressure on retail margin continues to mount. Pass-through of higher wholesale prices and of higher gasoline taxes in some states is not yet complete. Regular-grade gasoline margin was already severely crimped on July 7; now it is 1.40 CPG worse, just 13.22 cents. This is the narrowest it has been since April 7.

In several markets, retailers limped with less than a nickel margin on July 21, with many in the Gulf Coast area and elsewhere in tough straits, and some were in the red.

Meanwhile, high retail costs of doing business are not retreating.

Unless an oil price decline—a big and sudden one—does not come to the rescue and knock wholesale gasoline prices down, then retailers will have to impose street price hikes. If oil prices remain where they are, the retail price hike may be 3 to 8 cents soon; if oil prices climb, it would probably be more.

Camarillo, Calif.-based Lundberg Survey Inc. is an independent market research company specializing in the U.S. petroleum marketing and related industries. Click here for previous Lundberg Survey reports in CSP Daily News.
 

In a foodservice segment defined by convenience, c-store retailers are now facing increased competition from other channels. Grocery stores, third-party delivery services and meal-kit companies have joined the fight to best answer this question: Which category owns convenience today?

In addition to the contemporary avenues foodservice operators are taking—everything from mobile and online ordering to curbside pickup and delivery—c-store retailers are reconsidering a stalwart service format: the drive-thru.

Several retailers have tried implementing drive-thru over the years, with varying levels of success. Nevertheless, the channel remains optimistic about the format’s potential. In 2016, 14% of c-store operators surveyed for the first time by Technomic said they plan to add a drive-thru window at their store within the next two years.

And consumers may be primed to embrace the new format. Data from Technomic’s first-quarter 2017 Convenience Store MarketBrief shows that among consumers who are increasing their foodservice visits, 60% say that these visits are coming at the expense of fast-food restaurants, which likely offer drive-thru as part of their service model. To keep the momentum going, c-stores should take a page from restaurants’ book and conceptualize around the drive-thru.

A Drive-Thru Believer

“I’m a huge, huge believer in drive-thru for c-stores,” says Mike Lawshe, president and CEO of Paragon Solutions, Fort Worth, Texas, a provider of architectural design and related services. While retailers want customers to go into the store to buy high-margin items, customers prefer to use a drive-thru if they do not plan to buy fuel, he says. “Lack of traffic into the store is seen as a disadvantage for c-stores, but when drive-thru is done right, it turns that so-called disadvantage into an opportunity.”

On its face, a drive-thru window seems like a convenience no-brainer: Customers drive up, order and pay, and quickly receive their orders before driving away. But for the c-store operator, drive-thru presents numerous operational challenges, from labor efficiency to logistics.

“Placement of the drive-thru and how it runs is critical,” Lawshe says. “It costs money to do the drive-thru right, but it’s absolutely worth it. The key is reducing steps. Every step you can save for your employee is a win.”

“You have to consider how to emphasize simplicity,” says Lisa Dell’Alba, president and CEO of Square One Markets, an 11-unit chain of c-stores—several with drive-thrus—based in Allentown, Pa. “You have to eliminate the steps it’ll take for you to succeed on a daily basis. It starts with planning ahead, optimizing the layout of the store and figuring out what products should be going through the drive-thru.”

Square One relies on its most frequent customers’ purchases to determine which store products to position near the drive-thru.

“The main hurdle in the drive-thru game is how much it decentralizes your store operations,” she says. For example, the store may have a register on one side to handle in-store traffic, but a drive-thru pulls employees away from the center of the store. “It reduces your ability to control that space.”

To mitigate this challenge, dedicated staff should be assigned to the drive-thru window, and the store’s design has to provide a streamlined path to products that are most frequently ordered by drive-thru guests. To determine the best store setup and minimize steps, Lawshe advises retailers to collect 30 days of data on which items were sold through the drive-thru.

“These same purchase patterns will likely be repeated next month,” he says. “Move those repeat items closer to the drive-thru area. Be thoughtful; you’re not just creating a hole and throwing things through the window.”

A Powerful Differentiator

The question of what to offer via drive-thru is a tricky one, especially when it comes to foodservice.

“Foodservice changes the dynamic,” says Lawshe. “When a c-store adds made-to-order or some other  kitchen element, they have to create an efficient food line to the drive-thru. At the same time, retailers

can’t forget about other convenience items. The conventional idea of a drive-thru has to change; you have to totally re-envision the process.”

Making drive-thru a distinguishing element of a c-store brand can be a powerful differentiator, especially when combined with foodservice, says Scott Simon, president and CEO of Broomhall, Pa.-based Swiss Farms.

“Our private-label fresh foods are 100% natural, family recipes that are restaurant-quality, but they’re available in the drive-thru,” says Simon. “That’s something our customers just cannot get anywhere else.”

Swiss Farms was an early adopter of c-store drive-thru, which it offers in all 13 of its units. Some stores feature a dual-window setup, with bypass lanes that allow customers to drive ahead of others once their order is complete. Outdoor LED menu boards display foodservice offerings and specials, and drive-thru customers are treated to a full view of the interior and available products through floor-to-ceiling windows.

But some c-store chains don’t offer foodservice. Square One began operating a drive-thru 30 years ago, and it positioned the format solely around cigarettes. This enabled it to build a brand identity around being the ultrafast, go-to stop for cigarettes and other tobacco items. It aims to complete transactions within 30 seconds or less. To fulfill on this brand promise, the company decided to limit drive-thru offerings to tobacco products and a selection of store goods. Orders that could potentially take time to fill, from foodservice to big lottery ticket transactions, are taken only within the store.

On the flip side, retailers who limit their drive-thru’s scope to just food may be cutting themselves off at the knees.

“The biggest problem is when operators install a drive-thru and only use it for foodservice. That doesn’t make sense,” Lawshe says. Customers don’t expect a drive-thru at a c-store, he says, so eliminating categories from the service will disappoint them. “The bottom line is that ‘No’ is not a good answer in retail. You have to find a way to say ‘Yes.’ ”

Trial and Error

C-store retailers can also learn from the example of their restaurant competition. For example, self-ordering touchscreens and order-ahead mobile apps are steadily moving to the forefront for restaurant drive-thru.

Overall, 36% of restaurant consumers prefer to order food online and then pick it up from the drive-thru, according to Technomic research. While that service option may deliver for the restaurant customer, it may not be the best move for attracting c-store consumers who want to avoid that extra step between ordering and pulling up to the window.

Square One tested express ordering at the pump, through which customers could preorder store merchandise and then pick it up at the drive-thru. “It wasn’t a big hit with our customers because it added an extra step that took away from a convenient experience,” says Dell’Alba.

A basic drive-thru may even result in a somewhat unexpected benefit: strengthened customer engagement. “The drive-thru offers a unique opportunity to genuinely connect with our customers one on one,” says Dell’Alba. “Today, there’s so much technology being created to avoid face-to-face  interaction. But because of the drive-thru, our customers become very familiar to us—they know us, we know them. We know what they order, and we have it ready for them.”

Understanding how the c-store foodservice consumer may differ from the restaurant customer is key. On the surface, the goal is the same: to capture the food and beverage spend of an on-the-go guest. But a consumer who isn’t accustomed to visiting a c-store from a car may require targeted messaging.

“Success with drive-thru depends on the culture of the customer,” Lawshe says. “Reaching the drive-thru customer takes time; you can’t train a customer on the first trip.”

The adage “If you build it, they will come” doesn’t work for drive-thru. “You can build it, yes—but now you have to market it, you have to draw the customer, you have to get social media involved,” he says. “Ultimately, drive-thru has big benefits, but it’s not easy.”

Swiss Farms recently rolled out a mobile app that allows its guests to order food and pay for it ahead of time so that it’s ready once they pull up. The app is also a marketing tool that promotes daily specials on its rotating menu of family-size entrees and other promotions that are available in the drive-thru.

The Repeat Visitor

Drive-thru’s biggest benefit could be its ability to secure the elusive repeat visitor. “If you really take a look at how people shop at c-stores, it’s very habitual,” says Dell’Alba. “Adding a drive-thru can factor you into the customer’s routine.”

Retailers see the upside in using the drive-thru to align with their customer’s lifestyle. “We’re all about serving our customers and making their lives easier without sacrificing quality,” says Simon of Swiss Farms. “What’s easier than swinging through a Swiss Farms on your way to work or school, picking up a coffee and breakfast, and leaving with a healthy packed lunch?”

Ultimately, says Lawshe of Paragon, success in c-store foodservice, just like at restaurants, comes down to fulfilling customers’ needs and wants. If drive-thru fills a gap, it’s worth the investment of trial and error.

“Ask yourself, ‘What does my customer want?’ ” he says. “If you deliver on that, you will succeed.”

BROOKLYN, N.Y. — Fifty: That’s how many public gas stations remain in Manhattan, according to a 2016 analysis by The New York Times. That’s 30 fewer gas stations than were in operation in 2008, in a city where the local government alone uses more than 25 million gallons of fuel each year.

Brooklyn is trending in the same direction, warns a recent report, Fueling Brooklyn’s Future: Refueling Needs in a Resiliency Era, by the office of Borough President Eric Adams. A February 2017 analysis by the borough’s Land Use Department found that nine gas stations had closed in Brooklyn since Superstorm Sandy in 2012. Two more sites are under redevelopment. And zoning and development trends are putting an additional 12 gas stations at risk in the next two to three years.

“If the current trend continues, the impact will go beyond traditional gas-station consumers and have effects throughout the borough, whether one owns a vehicle or not,” the report states, noting how the fuel shortages after Superstorm Sandy highlighted this danger.

“A major disruption to our primary fuel source, combined with too few stations, would mean that deliveries to commercial and retail locations cannot be made and services cannot be provided with regularity, which would impact every Brooklynite,” according to the report.

The borough will be taking several actions to address the issue. They include:

• To protect existing fueling stations, Adams is asking the New York City Department of City Planning (DCP) to create a zoning text amendment that would enable fueling stations in the state’s Fuel NY storm recovery corridors to transfer development rights more easily. To qualify, stations would need to add resilient power-generating measures, such as power generators and alternative fuels such as compressed natural gas (CNG), hydrogen and electric-vehicle (EV) charging.
• To reduce the borough’s reliance on fossil fuels, Adams would commit capital funding to the New York City Department of Transportation to locate EV charging stations. Brooklyn currently has around 60 charging stations.
• Adams is asking for New York City’s Economic Development Corp. to create incentives for fuel retailers to add alternative fuels, and for the state alternative fuel infrastructure credit to be renewed and doubled before it expires at the end of 2017.
• The borough is also calling on New York Gov. Andrew Cuomo to expand the Fuel NY initiative to provide backup power supply at all of Brooklyn’s fueling sites. This would include solar panels, wind power and other energy technologies not dependent on the power grid or on generators.

“Given rising land values, we are certain to be facing fuel deserts in our borough in the coming years unless we incentivize land owners to protect current uses,” the report concludes. “We must work together to develop a plan that balances access to fueling stations with well-thought-out development across Brooklyn.”

PURCHASE, N.Y. — As talk of chairman and CEO Indra Nooyi preparing to retire makes the rounds, PepsiCo Inc. announced three senior leadership appointments June 20.

In moves that the company said support its “strategic priorities and growth agenda,” Ramon Laguarta, currently CEO of Europe Sub-Saharan Africa (ESSA), will become president of PepsiCo; Laxman Narasimhan, currently CEO of Latin America, will become CEO of Latin America and ESSA; and Silviu Popovici, currently president of Russia, Ukraine and Commonwealth of Independent States, has been named president of ESSA.

“PepsiCo has consistently delivered top-tier financial performance while simultaneously making investments that position the company for sustainable long-term growth,” Nooyi said. “Our ability to perform while we transform is a testament to our people.

“All across the business, from our frontline associates to our senior executives, PepsiCo is home to the very best talent in the industry. We have built a strong bench of senior executives, and these leadership appointments will further enhance our efforts to create shareholder value and propel our company forward.”

In his new role as president of PepsiCo, Laguarta will shape the beverage and snack company’s corporate strategy, work closely with business units to deliver top line growth, drive productivity to enable this growth, and invest in new areas of disruptive innovation, all in support of the company’s previously announced Performance with Purpose 2025 agenda.

Specifically, he will oversee PepsiCo’s Global Category Groups; its Global Operations, Corporate Strategy and Public Policy & Government Affairs functions; and the PepsiCo Foundation. Operationally, he will work closely with Mehmood Khan, vice chairman and chief scientific officer, to drive category innovation and progress against PepsiCo’s sustainability goals.

Laguarta brings more than 20 years of PepsiCo experience to his new role. In his most recent position, he led the transformation of the company’s European product portfolio and significantly strengthened PepsiCo’s position in key growth markets. Prior to becoming ESSA CEO, he served as PepsiCo Europe’s president of developing and emerging markets. Previous roles include president of PepsiCo Eastern Europe Region; commercial vice president for PepsiCo Europe; general manager for Iberia Snacks and Juices; and general manager for Greece Snacks.

Laguarta will continue to report to Nooyi.

“Ramon, Laxman and Silviu are highly respected executives with long track records of delivering strong results throughout their careers,” Nooyi said. “These moves continue our longstanding practice of elevating great leaders within PepsiCo and allowing them to apply their capabilities in new ways that support our strategies for growth. We have an incredibly strong executive team in place, and I have no doubt that our next generation of talent will lift our company to even greater heights in the years ahead.”

Nooyi has talked about preparing the Purchase, N.Y.-based company for her eventual departure from the company, leading many to believe she will announce her retirement soon. She has led the company for 11 years.

Brought to you by Keurig Green Mountain.

After a summer of refreshing iced coffees, fall can signal a return to the regular hot cup of joe for many coffee drinkers. But just because your customers might stick to a routine doesn’t mean your coffee-bar offerings should.

Keep customers interested by offering a variety of options, such as seasonal beverages that can be enjoyed either hot or over ice. Although hot coffee is popular year-round, Technomic’s 2016 Beverage Consumer Trend Report noted that 59% of consumers say they consumed a cold/iced or blended coffee drink in the past month. So, it’s in retailers’ interests to keep consumers coming back for more by offering new and trending iterations, like cold-brew coffee, along with the trusty standbys like iced coffee.

Hot or iced, it’s all nice

When it comes to purchasing coffee at convenience stores, according to Technomic data presented at the 2017 CSP EduNetworking Hot Dispensed Beverages Forum, 38% of consumers say they are purchasing hot specialty coffee drinks more now than they did two years ago, and 65% of consumers say they’ve ordered a regular hot coffee drink at least once in the past month. But although a lot of people do still switch back to hot coffee when the weather cools off, that’s not what everyone does anymore.

Chuck Moyer, food service category manager for Rutter’s, a Pennsylvania-based chain of c-stores, says, “Several years ago, you would have that September, October increase in hot coffee. And you still do, but there’s people that are now purchasing iced coffee, iced lattes, cold-brew coffee year-round, and not switching back and forth depending on the temperature.”

In other words, no matter what the weather forecast says, operators should strive to offer the latest coffee drinks—hot and cold—to maximize profits and engagement.

Pumpkin, pumpkin and more pumpkin

C-stores know it’s important to offer customers different types of coffee—decaf, different roasts, etc.—but flavored and seasonal coffees have been on the rise for several years now, so it’s also essential to offer specialty flavors as the seasons change. 

According to Technomic’s MenuMonitor, the top 10 most popular flavors for all coffee beverages at c-stores are:

1. Vanilla
2. Hazelnut
3. Mocha
4. Caramel
5. Cream
6. Chocolate
7. Pumpkin
8. Banana
9. Blueberry
10. Chai

And while many of these flavors are popular year-round, there are a few that may increase in demand as the weather cools down, such as caramel.

What consumers really want, though, is pumpkin spice.

“Today, everybody just expects pumpkin everything,” Moyer says. “We have pumpkin-spice cappuccino, syrup and creamer for the condiment bar. From September to November, everything’s pumpkin. I’m trying to expand it some, because obviously there are some customers who may just get pumpkined out—there’s opportunity for possibly getting into apple ciders and other things that are harvested around fall. You can never not have the pumpkin, though.”
 

ST. LOUIS — Anheuser-Busch made another move into nonalcohol beverages with the purchase of an energy-drink and sparkling-water company.

The beer giant announced its purchase of Hiball on July 20. Hiball makes organic energy drinks and sparkling energy waters under the Hiball brand, as well as Alta Palla (“high ball” in Italian), a brand of organic sparkling juices and sparkling waters.

“Hiball’s success in the energy and sparkling-water categories—two of the fastest-growing categories in the beverage industry—will further deepen A-B’s investments in the no-alcohol sector,” the company said.

San Francisco-based Hiball was formed in 2005 when its founder and president, Todd Berardi, began selling the company’s signature energy drinks out of the back of his car. The company now has 20 employees.

“The combination of Hiball’s category-leading organic energy drinks and Alta Palla’s organic sparkling juices and sparkling waters together with our network and operational know-how will create tremendous growth opportunities for these brands,” said Joao Castro Neves, president and CEO, Anheuser-Busch, St. Louis. “Our goal is to deliver Hiball products to new markets, while preserving their culture and brand identities.”

Anheuser-Busch plans a phased transition of the Hiball Energy and Alta Palla brands to it wholesaler partners.

The new drinks add to A-B’s nonalcohol lineup, which includes ready-to-drink Teavana with Starbucks, 180 energy drinks and Icelandic Glacial Spring Water.

“Hiball Energy and Alta Palla are great additions to our developing no-alcohol portfolio, and we have been asking A-B for a partnership opportunity just like this,” said David Stokes, chairman of the Anheuser-Busch Wholesaler Advisory Panel. “Adding these outstanding brands to our wholesaler system increases the breadth of our product portfolio and strengthens our network as we offer more innovation to our customers.”

WINSTON-SALEM, N.C., and LONDON – Shareholders on both sides of the Atlantic approved one of the biggest acquisition deals among tobacco companies in recent memory.

Both companies held meetings in their respective headquarter cities July 19, approving measures that would allow a subsidiary of London-based British American Tobacco (BAT) to buy the remaining 57.8% of Winston-Salem, N.C.-based Reynolds American Inc. not already held by BAT. Approved by a vast majority of shareholders on both sides, the $47 billion deal is now on the fast track to closing, which the companies set for July 25.

“We are delighted with the overwhelming support we have received, both from BAT shareholders and from Reynolds shareholders,” said Nicandro Duarte, chief executive of BAT. “We look forward to welcoming Reynolds group employees to British American Tobacco and to realizing the benefits of operating these two great companies as one stronger, global tobacco and next-generation products business with direct access for our products across the most attractive markets in the world.”

Reynolds American is the parent company of R.J. Reynolds Tobacco Co., maker of Newport, Camel and Pall Mall cigarettes; Santa Fe Natural Tobacco Co. Inc., maker of Natural American Spirit products; American Snuff Co. LLC, maker of smokeless tobacco products including Grizzly and Kodiak; Niconovum USA Inc. and Niconovum AB, which market nicotine-replacement therapy products in the United States and Sweden; and R.J. Reynolds Vapor Co., marketer of Vuse digital vapor cigarettes.

BAT is a global tobacco group with more than 200 brands sold in more than 200 markets. Its brands include Dunhill, Lucky Strike, Kent, Pall Mall, Kool, Benson & Hedges and Rothmans.

Brought to you by Paytronix.

The greatest revenue-generating potential a loyalty program can tap into is from a brand’s segment of customers who visit sometimes, but not always.

Each segment of customers visits at a particular frequency. Customers with medium-to-high frequency are giving the brand nearly all their possible visits. Since they are already regular customers, getting them to visit more can be tricky. On the other hand, low-frequency customers are visiting occasionally, but other brands are being visited by them more frequently. The potential to move low-frequency customers into a higher-frequency segment is where the value of any successful loyalty program comes into play—as the goal is to steal visits from the competition.

If the value of your loyalty program depends on your ability to attract lower-frequency members, how do you do it? There are three key factors.

1. Design a program for the low-frequency segment. Focus the design on low-frequency customers. They will need to understand the value proposition quickly and be compelled to join on the spot.

   A well-designed program motivates customers to change their behavior. It will motivate customers early in their membership lifetime by rewarding them for positive behavior. Until members have experienced their first earned reward, they will be skeptical of the program. Make sure your small frequency rewards are desirable to the target audience.
    

2. Make it easy for people to join and participate. Your best customers will eagerly join your program. They will download a mobile app, connect their credit card, complete a long enrollment form and possibly pay a fee. They know there will be a benefit in joining.

   To compel low-frequency customers to enroll, the program needs to be easy to join. The more ways that customers can do so, the more likely the brand is to reach a critical mass of members. Offer multiple ways to join the program, such as through mobile apps, text-to-join, mobile-friendly registration web pages, kiosks, iPads in the store and even paper registration forms. We have seen incremental increases in new members with each type of registration process added to a program.
    

3. Never stop enrolling new members. Growth beyond the first few months depends on attracting low and infrequent segments. They may not visit you during the first two months of the program, so if you stop enrolling at that point, you’ll miss them. Also, since new customers tend to visit with lower frequency in the beginning, you need to get them to join your program when they discover you.

Getting low-frequency customers into your reward program is the key to producing incremental revenue. Experienced partners know how to design the program to attract this group of clientele, employing ongoing enrollment campaigns that are designed to compel the infrequent group to join the ranks of the brand’s more engaged customer. Download the data brief “Target Low-Frequency Guests. Here’s Why.” to learn more.