From Vehicle-Centric to Customer-Centric

New technologies, products, legislation, and changing consumer behavior are transforming nearly every industry. Companies that fail to recognize or respond to these changes risk falling behind, while those that seize these opportunities can grow in an increasingly competitive market.

In this blog (From Vehicle-Centric to Customer-Centric), we explore the strategic choices many companies will need to make in the coming years to remain “top of mind” for their customers.

How can you attract new customers? Perhaps even more importantly, how can you retain existing ones?

From Vehicle-Centric to Customer-Centric

Customer Loyalty: The Key to Future-Proofing

Loyalty programs can significantly impact gas station revenue. Research shows that 50-70% of future gas station revenue will come from loyalty transactions. Building customer loyalty goes beyond offering discounts—it’s about establishing long-term relationships. By investing more in retaining existing customers, you can turn them into ambassadors for your business.

While many companies focus on attracting new customers, we see the potential in retaining existing ones. It’s worth remembering that acquiring new customers can cost 5 to 25 times more than retaining an existing one. Loyal customers generate a steady stream of income and are less susceptible to competitors’ promotions.

Loyalty programs promote:

  • Repeat purchases/visits.

  • Valuable data insights to better understand customer behavior and preferences.

The Evolution of Loyalty Programs

Loyalty program developments in the fuel industry demonstrate how companies can respond to customer needs. Traditional points systems have evolved into programs offering personalized benefits and exclusive offers.

A well-designed loyalty program can lead to:

  • Higher average order values. (AOV)

  • More frequent purchases.

  • Strengthened customer-brand relationships, enhancing brand image and generating positive word-of-mouth.

The five stages of loyalty programs

The five stages of loyalty programs

From Vehicle-Centric to Customer-Centric in the Forecourt Industry

Mobility Service Provider

Challenges and Opportunities in the Forecourt Industry

The fuel/retail industry faces several challenges, including rising fuel prices, electrification, and increasing competition. However, these challenges also provide opportunities for diversification and innovation:

  • Service Diversification: Offering EV charging, convenience store products, and alternative fuels.

  • Green Initiatives: More customers value sustainability, and loyalty programs can cater to eco-conscious choices, such as trading points for green actions.

The Forecourt of the Future

The future of forecourts lies in delivering integrated mobility services. Gas stations will evolve from refueling points into hubs for EV charging, shared mobility, retail, parcel services, and even home energy solutions.

  • E-mobility Solutions: EV charging will be central, along with other energy services.

  • Integrated Payment and Loyalty Systems: Technology will allow gas stations to collect and use customer data for more personalized experiences.

  • Partnerships: Collaborations with non-fuel brands can further enhance the value of loyalty programs.

Focus Areas for Forecourt Operators

To gain a competitive advantage and strengthen customer loyalty, forecourt operators should consider:

  • Implementing a seamless digital customer journey, including mobile payments and self-service solutions.

  • Collecting data for personalized marketing: Segment customers to increase average order value through preference-based targeting.

  • Expanding services: Offer EV charging, convenience products, and other mobility solutions.

  • Embracing sustainability: Integrate green initiatives into loyalty programs to meet the growing demand for sustainability.

Competition

Gas stations are undergoing a major transformation. Traditional stations are facing increased competition from both expected and unexpected players. Competitors may no longer be limited to traditional fuel companies; they may also include mobility pass providers or even companies from outside the sector, like Amazon, Uber, IKEA, amusement parks, and local supermarkets, all of which are looking to connect with (e-)mobility or provide energy solutions directly to consumers.

Opportunities for Gas Stations

  • Positioning as an ‘Energy Hub’: Stations can evolve into versatile energy hubs offering both fossil fuels and alternatives like electricity, hydrogen, and more. This makes them attractive to a diverse range of energy consumers.

  • Customer Experience and Additional Services: By offering services such as a café, co-working space, or quick e-commerce pickup points, stations can retain customers longer and increase revenue.

  • Collaborations with Energy Suppliers: Stations can partner with green energy companies to provide sustainable energy solutions, positively impacting their brand and meeting the growing demand for green energy.

Threats to Gas Stations

  • Customer Loss to New Providers: Stations may lose customers to retailers offering charging facilities at parking lots and public locations.

  • Margin Loss Due to Price Transparency: Transparent energy prices increase margin pressure, with stations earning less per transaction as customers access a broader range of energy sources.

  • Dependency on Infrastructure Upgrades: Transforming a gas station into an EV or energy hub requires significant investments, which can be a barrier for locations unprepared for electric or alternative vehicles.

Though new competitors pose a threat, gas stations can embrace this transformation by diversifying their offerings and strengthening their role as essential locations for various energy needs. By proactively adapting to these changes, gas stations can leverage the future to continue meeting tomorrow’s mobility demands.

Conculsion: From Vehicle-Centric to Customer-Centric

The shift in the forecourt industry is inevitable. Companies solely focused on vehicles will lose ground to competitors that meet modern customers’ needs. Loyalty and customer-centricity are key to remaining relevant in this changing market.

The evolution of loyalty programs shows that the traditional approach no longer suffices. Simply offering discounts is not enough; building lasting relationships is essential. Loyal customers return more frequently, spend more, and are less tempted by competitor offers.

By leveraging new technologies such as personalized marketing and digital customer journeys, forecourt operators can better meet their customers’ needs. Additionally, the rise of EV charging, sustainable fuels, and convenience products creates new opportunities to attract and retain customers.

Forecourt operators who seize these opportunities will not only attract new customers but also turn existing customers into brand ambassadors. The future lies in offering integrated mobility services, with technology and customer focus at the core.

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