NPN Magazine April 2013

National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.

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RETAIL OPERATIONS BY KEiTHREID Relationships with major oil brands and grocers helps keep this loyalty program in expansion mode MAJOR LOYALTY L areas  where  there  is  a  lot  of  buzz,  increasing  adoption  and  plenty  of  success  stories  (though you can certainly find the opposite  as  well).  That  is  true  for  the  independents  and for those flying a major brand flag.  While  Phillips  66  has  made  a  commitment  to  the  Kickback Rewards System, Chevron and Exxon Mobil  are running a private label programs using technology  provided  by  Dallas-based  loyalty  provider  Excentus.  Shell  participates  directly  with  Excentus  as  the  fuel  partner for the company's base Fuel Rewards Network  coalition program.  In general, customers accrue points at various retail  outlets in the specific network for a discount on gasoline at the pump when using the fuel partner's site. The  technology  allows  for  an  actual,  physical  price  rollback at the pump display. For example, with Chevron  for  every  dollar  of  groceries  a  customer  purchases,  they get a point. For every 100 points they get $0.10 off  per gallon. And at Chevron they can ultimately get up  to $0.20 off per gallon for up to 25 gallons. The customer is prompted to swipe a loyalty card  (either  FRN  or  the  grocery  partner's  card)  at  the  dispenser  or  enter  a  phone  number.  If  a  reward  is  available, the price rolls back at the pump in what is  a patented feature. "We've been in fuel loyalty almost a decade now,"  said  Brian  Jefferson,  general  manager  of  Centego,  a  subsidiary of Excentus focused on the company's private label programs. "We initially started out working  with some of the supermarket chains and then over the  past couple of years that has spawned off into working  with convenience stores and the major oil companies to  run their own loyalty programs or working to partner  together the supermarket chain with the fuel provider.  Basically,  we  provide  the  technology  licensing—we  have  a  portfolio  of  patents  that  covers  the  cents  per  gallon  loyalty  concept  and  various  marketing  services  to help market the program to consumers." 22 oyalty continues to Be one of those APril 2013  NPN Magazine  n

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