Foodservice within convenience stores represents a $13 billion industry. Yes, that’s billion with a “B.” It’s also the second largest retail/foodservice category behind supermarkets. With the decreasing price of fuel, c-store owners and operators have an opportunity to capitalize on additional disposable income in the pockets of patrons through snacks and beverages. At the same time, coffee and convenience stores are on a collision course. Why? C-stores see a market opportunity to leverage their broad geographic footprint to start taking marketshare away from Starbucks, Dunkin’ Donuts and other coffee and quick service establishments. However, in order to deliver on what customers want, c-stores need to measure the key customer loyalty metrics and monitor them over time.
#1 Storefront Conversion: Why will consumers walk through your front door?
Whether your c-store is tied to a fuel station or in a busy urban location, it’s important to know if you’re capturing more visitors over time. Storefront conversion measures the percentage of outside traffic that enter your location. If you’re making changes to your signage or offering a new daily deal, is it changing the likelihood of patronage from passerbyers? Most notably, are you marketing your offerings effectively on the outside of your location?
#2 Frequency: Why will consumers stay longer in your store and buy more?
Loyal customer reportedly spend 33% more than new ones. With this in mind, c-stores must focus on increasing stickiness over time. Frequency measures how often a patron returns within a period of time. For example, if you introduce a new coffee roast for your morning crowds, does it increase the number of times patrons return during the new menu item’s promotion?
#3 New Patron Acquisition: Are you attracting new loyal customers?
In addition to nurturing an existing customer base, c-stores need to keep watch of their new customer percentage, to ensure that they’re acquiring new patrons. New visitors measures the percentage of visitors that have never been previously seen at that location. In particular with new menu introductions and targeted campaigns, the marketing teams at c-stores will find value in measuring the percent of new visitors during a campaign compared to a regular week.
Measuring these metrics and monitoring them over time shouldn’t be expensive, difficult or require a change in behavior from your customer base. Wi-Fi offers the fastest, least expensive path to key loyalty metrics for convenience stores. If you’re curious to see how, contact us today to get a demo from one of our Analytics Consultants.