The last time I was in Australia while visiting customers a couple of months ago, I couldn’t help but notice the increased emphasis local operators put on establishing themselves as more than a place for “gas, smokes, and Cokes,” as we used to refer to retail stations way back when I was studying in the United States.
Unfortunately, I couldn’t make it back to Australia to attend the very interesting APFI Forum 2024 and see my friend Mark McKenzie. However, my team was able to attend, and they came back reporting the same sentiment about broadening the choices of what c-stores offer.
While fuel is still what brings customers to sites, there’s an increased need to understand consumer behavior to optimize offerings in such a highly competitive business climate. The main goal is to drive traffic from the pump to the store, where the margins are higher. I’ve found that the most effective way to make this evolution is to deploy the right tools for collecting, optimizing, and analyzing data.
Emerging thoughts and responses to industry shifts
Understanding data better helps you identify key trends faster and make sure your business can respond quickly. For example, the proliferation of foodservice offerings combined with petroleum and convenience has created higher expectations from consumers that you will continuously adapt your offerings.
To accomplish that, you must keep up with the latest technology. Here are just a few ways to get ahead of the technology curve in today’s dynamic marketplace:
- Use loyalty to drive pump-to-store conversion: According to data that PDI has seen across a wide range of customer segments, loyalty members exhibit much more lucrative behavior patterns, with 57% purchasing gas and visiting the store compared to just 33% of non-loyalty members. On top of increased pump-to-store conversion rates, loyalty members also spend on average 30% more than non-loyalty members with each visit.
- Leverage an intelligent fuel pricing strategy that translates to sustainable margins: Your fuel pricing strategies have the power to make an enormous difference on your bottom line. Finding the fuel pricing sweet spot—that delicate balance between volumes and margins—is tough. Forward-thinking retailers are using artificial intelligence and machine learning capabilities in their fuel pricing to set the optimal price. With this advanced technology, they can compare volumes across price points, predict competitor pricing positions, and better utilize site data. The result: achieving volume and margin targets while pricing in a competitive and consumer-oriented manner.
- Optimize your fuel supply chain to reduce operating costs: Data-backed fuel logistics solutions simplify management of complex deliveries across the entire fuel and petroleum ecosystem. Having real-time visibility into every aspect of your operations helps increase transparency and compliance throughout your organization. Leveraging that transparency and your data can add multiple layers of optimization—helping you deliver the right amount of product, at the right time, at the lowest possible cost.
- Turn data into income: Chances are, you have enough data from your operations. But after talking to my peers in the region, I’ve observed different levels of maturity in getting the full value out of that data. It all starts by breaking down the data silos in our industry, making data actionable to optimize decision-making that translates directly to the bottom line. Turn your data into insights that generate income!
- Don’t forget about cybersecurity: With an ever-expanding threat landscape, highly distributed businesses like yours are increasingly at risk. And while there are many security service providers who want to help, it’s always better to have someone at your side who thoroughly understands the intricacies and specific needs of the fuel and convenience industry.
A general theme throughout APFI Forum was the continuing need for focus, health, and resilience. A focused offering with targeted customers is required. Employee health and avoiding burnout is vital to continued success. And resilience is mandatory for surviving in a difficult economic climate.
Looking beyond one’s “fence”
As we navigate the latest convenience store industry trends, it’s important to look beyond regional boundaries and embrace global knowledge exchange—just like a dear friend and customer of mine from Australia did a few weeks ago when visiting the PDI Connections Live event in Washington, DC. By sharing knowledge and resources across regions, we can collectively transform the fuel and convenience industry on a global basis.
Want more industry insights?
To explore additional industry trends and insights, download the latest reports from PDI and GasBuddy.
Position your business for continued success
By “Connecting Convenience” across the industry ecosystem, PDI can help you and your business succeed regardless of what market dynamics you face. Contact us today to learn how we can help you transform your business.
Pre-register for PDI Connections Live 2025
Following an information-packed Connections Live 2024 event, you can now pre-register for Connections Live 2025 in Denver, Colorado. Don’t miss your chance to experience the industry’s premier training and networking event in person.