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FULLSERVICE Driving Loyalty W THE SOURCE FOR PETROLEUM AND CONVENIENCE MARKETERS e feature loyalty in this issue—specifically a look at Excentus' Fuel Rewards Network and its private label offshoots. Loyalty is as old in the industry as stamp programs and punch cards, and as new as the latest generation of digital solutions utilizing sophisticated promotional capabilities and database marketing. Unfortunately, I am part of that demographic that is not prime for loyalty solutions. From a retailer perspective, I am a bad prospect. I am far too convenience-driven to go much out of my way for a loyalty offer or for that matter hunt around to save a few cents here or there in general. The retail sites on my commute are fairly comparable in price, and I have settled into a pattern of where to stop while going to work, and where to stop coming home as my mood or schedule dictates. I look on gas prices as a cost of my employment and simply work hard to ignore the sticker shock from the final number when I hang up the nozzle. From a personal perspective, I am the king of breakage (or not using my rewards) when I do take part in a loyalty solution—whether it be airline miles or the punch card where I get my hair cut. This is a mixed bag for the retailer. They save money on issuing the reward, but at the same time I'm not emotionally connected to the loyalty experience. I really should do better because with the economy as tight as it is today and inflation (admitted to by the Fed or not) on the rise in so many commodity areas, it really is a waste not to save as much as you can. Having said that, I know there are plenty of "good" prospects in the market, and I have seen the numbers to indicate that a well-crafted loyalty solution, well executed by the retailer, can be well worth the effort. Loyalty can be tricky. A good program will incentivize noncustomers to frequent a site or existing customers to increase their frequency. Even better is a program that does the above, but manages to be subsidized partially or fully by product vendors or other partners. A bad program ends up costing the retailer too much margin, while subsidizing existing good customers for the choices they are already making and that irritates everyone should you have to shut the program down. Like any core aspect of business—and loyalty becomes core once implemented—it requires the dedication and resources to make it a success at the marketer/retailer level. The program in use may have excellent technology, but it comes down to the operator's internal human resources to make sure the customers are brought onboard and that the promotions do what they are hoped to do once implemented. It cannot simply be an afterthought. If the proper focus and effort are applied, people like me should not matter all that much. n Keith Reid EDITOR-IN-CHIEF kreid@specialtyim.com April 2013 Editorial office List Rental/REPRINTS EDITORIAL STAFF cnaughton@specialtyim.com 1030 W. Higgins, Suite 230 Park Ridge, IL 60068 Editor-in-Chief Keith Reid kreid@specialtyim.com (847) 720-5615 Cheryl Naughton Phone: (678) 292-6054 Fax: (360) 294-6054 Corporate Office 1030 W. Higgins Road, Suite 230 Park Ridge, IL 60060 (847) 720-5600 Fax: (847) 720-5601 Associate Editor Debra Reschke Schug SUBSCRIPTION CUSTOMER SERVICE dschug@specialtyim.com (847) 720-5618 Phone: (845) 856-2229 Fax: (845) 856-5822 Contributing Writers Stephen Bennett Maura Keller Terry McKenna Mark Ward, Sr. PRODUCTION Art Director Andrew Stamm Production Manager Karen Kalinyak advertising & SALES National Account Manager – East: Tom Buttrick 135 E. 55th Street, 5th Floor New York, NY 10022 (212) 588-9200, 1325 tbuttrick@specialtyim.com East: Dave Campbell (413) 528-2364 Fax: (413) 528-8835 dcampbell@specialtyim.com Central & South: Rich Alden (603) 899-3010 Fax: (603) 899-2343 ralden@specialtyim.com Central and Mid-West: Leslie Palmer (248) 530-0300 Fax: (248) 530-0301 lpalmer@specialtyim.com West: Glenn Datz 626 Wilshire Blvd., Ste. 500 Los Angeles, CA 90017 (213) 596-7200 gdatz@specialtyim.com CLASSIFIED SALES Glenn Datz 626 Wilshire Blvd., Ste. 500 Los Angeles, CA 90017 (213) 596-7200 gdatz@specialtyim.com NPN—National Petroleum News (ISSN 0149-5267) is published 9 times per year including two special issues Marketfacts and Marketfacts Review Issue (October) by Specialty Information Media. 1030 W. 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