Petrol retailers fight for customer loyalty

Presented by: Rishabh Anand Aakarshan Jain

Petrol Retail is a special sphere offering a product that is indispensable for the most diverse groups of customers (both physical and legal entities, for both personal and professional purposes), and always in high demand for all of them. However, to attract more customers and to stand out against the petrol retailing background an increasingly large number of retailers transform their stations into multifunctional complexes where fuel becomes only one product in a wide range of other product and services. Petrol Retail is becoming a highly competitive market with numerous players (both small local companiesand subsidiaries of globally presented brands); and to win Customer in this market is becoming a real challenge requiring a well thoughtout customer relations strategy. LifeStyle Marketing is exactly the basis you need to build and develop this strategy that would take into account and address the industrys specifics.
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The petroleum retailing industry in Asia and Middle East faces significant challenges. With low product differentiation, lack of customer loyalty, coupled with intense competition, due to deregulation, as in India, the various players will try to gain share from each other. This will exert downward pressure on margins and force players to adopt new and innovative strategies.
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CRM
Customer relationship management (CRM) is a model for managing a companys interactions with current and future customers. the strategy that a company uses to handle customer interactions. CRM allows businesses to develop long-term relationships with established and new customers (CRM) is a widely implemented model for managing a companys interactions with customers, clients, and sales prospects.

Variety of objectives to achieve: Attract more customers Give existing customers compelling reasons to keep fuelling within the same petrol network. Encourage customers to come and stay, prevent them from going to competitors. Encourage fleet drivers (whose interests do not coincide with those of fleet owners and those of individuals driving their own cars) Increase the average spend per visit (via offering accompanying products and services) Increase and level the traffic rate (average number of customers during the day)

LOYALTY
Describes the post-purchase behavior of customers, whether they are indulging in repeat purchase of the same brand/service offered by an organization, over a period of time. Objective:-positive WOM, strong bond between customer and product.

Results:- only a strong loyal customer base can save the organization in its tough time. Managing customer loyalty is devising ways to bring customers back to the organization to ensure repurchase. Customer loyalty management is a continuous process, or group of programmes designed with the objective of keeping customer satisfied so that he/she will provide more business.
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LOYALTY PROGRAMES
Structured marketing efforts that increase retention rate and encourage repetitive buying by customer. They increase companys revenue and profit by improving retention among its customers.

Benefits?
Build long-term relationship with customers who contribute the most to profitability. Capture a large share of their business. Generates sales growth by increasing referrals from customers and employees. Improves long-term financial performance and shareholder value.

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TYPES OF LOYALTY PROGRAMMES.

Appreciation s Rewards

Partnership

Rebate

Affinity.
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Customer organization relationship

Partner advocate

support
client

customer Prospect
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Stages of customer association

recommendation s

satisfactio n

repurchase

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BP

British Petroleum, is a British multinational oil and gas company headquartered in London. Sixth-largest energy company by market share, the fifthlargest company in the world measured by 2012 revenues, and the sixth-largest oil and gas company measured by 2012 production. BP is vertically integrated and operates in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has renewable energy activities in biofuels and wind power.
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Example of gulf

As gas prices rise, consumers are increasingly concerned with finding the best deal. Drivers are willing to travel a farther distance to a gas station if it means cheaper fuel prices. One way convenience stores, gas station operators and fuel suppliers are attracting customers is through brand loyalty programs. Gulf Oil, a fuel supplier in the United States, recently launched a loyalty program to 2,500 of its fueling stations in 29 states, Convenience Store Decisions reported. This program includes a special card for members, which they can use when they fill up their gas tanks to earn instant savings. Gulf Oil said the program and membership card will effectively build customer loyalty and increase sales at their gas stations. "These easy-to-manage programs give Gulf owners and operators effective ways to increase their revenue by attracting new customers and building stronger relationships with existing patrons. In addition, the promotions are easily adjusted to meet changing market conditions," said Rick Dery, Gulf Oil senior vice president and chief sales and marketing office. Store operators also found it helps to encourage customers to shop more at the Gulf Oil stores.
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Nectar is the largest loyalty card scheme in the United Kingdom comprisin g partner companies including the supermarket ch ain Sainsbury's and BP.
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Benefits to consumers

Points are normally collected at a rate of two points for every 1 spent.
The number of points on offer can vary for instance, in case of fuel points are collected at rate of one point per liter.

Collectors usually get back 0.5p for every point collected. One must collect at least 500 points to be eligible for any offers.
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Redemption

To be eligible to redeem at a given store, the customer must have collected Nectar points in that store within the previous twelve months, and at least 24 hours earlier. A work around procedure has since been put in place allowing customers to redeem points at any store. Nectar offers a range of non-cash rewards. Providing the card is used to collect points at least once in any twelve-month period,. Nectar points do not expire. This allows cardholders to save up for more expensive rewards.
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INITIATIVES

One example of a common CRM strategy is the rewards card program offered by many supermarkets. The store gives its customers a free card that gives them access to special deals and discounts. But that card also tracks everything the customer buys and allows the store to create an extremely detailed customer profile based on his or her purchasing habits. Armed with that information, the store can then offer its customers targeted coupons and other programs that will motivate its customers to buy more products from that store.
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Frustration among customers

Sometimes frustration arose among customers when ever a particular offer is withdrawn before they have collected.

Solution

If the company wants to withdrawn a particular scheme then it should first redeem the points of the customers as collected by them and then it should be withdrawn.
As the points collected by the customer the company should give the gifts or fuel in lieu of the same valued points.
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