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Fuel loyalty programs are important tools for fuel and convenience stores to keep a steady stream of happy customers, and two key improvements can help you stand out: loyalty stacking and biometric-enabled payments. These enhancements can take your rewards program from ordinary to a seamless, high-value experience that not only encourages more customer visits but also strengthens those relationships.

Discover why and how pairing these two strategies can elevate your loyalty program to help you stand out in a competitive field.

How gas station loyalty programs can accelerate fuel retailers’ success

Modern American consumers are more than just cost conscious—they're driven by opportunities to save money and “game” the system. Loyalty programs incentivize repeat visits to particular brands by offering rewards, discounts, and other perks and benefits. And when it comes to fueling up, gas and convenience store loyalty programs are the norm: Two-thirds (66%) of American gas and diesel car owners say they are members of at least one fuel loyalty program, according to YouGov Profiles.

Saving at the pump feels good considering that the average American spends around $204 per month on gas on average (as of 2023, the latest data available from the U.S. Bureau of Labor Statistics). But because just about every fuel station and retailer offers loyalty programs, it’s not enough to simply have one. Station owners must find ways to keep customers engaged with fuel loyalty programs.

In fact, of the 59% of consumers who said they prefer a certain gas station or chain, 41% said that preference was driven by the store’s loyalty program, according to a report by the Transportation Energy Institute.

Gas and convenience store loyalty programs can be used as a strategic tool to meet consumer demand for savings and a convenient, personalized experience. Here are just a few of the real business benefits of having a top-notch loyalty program:

• Incentivize repeat purchases by offering points, discounts, or perks: A long-standing Bain & Company theory claims that businesses can boost profits by 95% just by increasing retention by 5%.
• Improve brand loyalty in a low-differentiation industry: Because there isn't much to differentiate one gas station from another, to stand out, you need to find ways to offer a superior customer experience. Offering an amazing loyalty program can go a long way.
• Provide personalized offers to enhance perceived value: A Deloitte Digital study found that 78% of consumers want personalization that helps them save money, while 84% said special discount offers or bundles influenced their purchasing decisions.
• Break customer patterns: According to Upside’s “Winning the Uncommitted Customer” report, 59% of fuel customers are willing to change where they go based on ongoing loyalty, rewards, or membership programs.

How the loyalty landscape has evolved

Fuel loyalty programs are hardly new, but they’ve grown and developed over the years. In the early days, brands would use things like punch cards (gas up ten times, get one free) or some sort of simple points system.

Loyalty programs gradually grew more sophisticated as partnerships between fuel retailers and outside companies became popular. For example, credit card companies started offering co-branded gas credit cards, and grocery store chains allowed shoppers to earn points that could be redeemed at partner fuel stations.

In the age of smartphones, gas station loyalty programs evolved once again with people using app-based loyalty programs to track earnings, access location-based offers, and pay with digital wallets.

Today, loyalty programs are finding ways to leverage AI to increase personalization and real-time offers. Gamification is also popular, giving users fun challenges to increase their rewards (e.g., spin the wheel to earn your discount, or reach 100 stars to earn $5 off in-store).

What’s next? How to stand out in a crowded loyalty field

Today’s customers get a lot of satisfaction out of saving money, being rewarded for their loyalty, and having a seamless checkout experience. Let’s compare two experiences of this concept in action:

• Customer 1 pulls up to a pump that uses facial recognition technology. With a quick scan, their loyalty member profile is accessed and their 10 cents per gallon discount is automatically applied. An additional 20 cents per gallon comes off because their supermarket loyalty program allows them to redeem grocery points for gas. On top of that, their linked payment method is a credit card that earns 3% cash back at gas stations. After the purchase, the customer receives a thank you notification letting them know they're eligible for a free coffee with any purchase in the convenience store (which is generated based on their past purchase history).

• Customer 2 pulls up to the pump and wants to use their loyalty app to get a discount. Prior to arriving, they transferred points from another loyalty app to their gas station account. When the customer tries to access their loyalty card number in the app for the attendant to scan, they realize they're locked out and can’t remember their password. They have to wait for an email to verify their identity, but because cell service is spotty, the email doesn’t arrive. The customer ends up paying full price.

It’s easy to see that the first customer’s experience was far superior because it combined loyalty stacking and biometrics to offer convenience, speed, and the opportunity to redeem earned discounts and rewards. Here’s why:

1. Loyalty stacking can make you more competitive.

Loyalty stacking for gas is the practice of combining different discounts, rewards, and savings to achieve a greater reduction on your fuel cost. Many fuel stations integrate with multiple partners so members can earn points not just from gas purchases but also from everyday shopping at participating supermarkets, retailers, and restaurants. Some credit card issuers also offer bonus points on gas purchases.

Allowing loyalty stacking can attract customers who enjoy layering multiple rewards. In practice, they could enjoy a per-gallon discount with a gas station loyalty program and additional discounts from a partner program’s points transfer, plus cash back or points for using a particular credit card. Likewise, they may avoid other brands that don’t allow or make it more complicated to stack.

2. Biometrics can help improve the customer experience.

Ever try to sign up for or use a loyalty program that’s clunky or requires you to remember or retrieve passwords at the point of sale? That can be a big turnoff for customers who have grown accustomed to using facial recognition, fingerprints, and palm readers to access various accounts.

Having a frictionless customer experience can make earning and redeeming rewards more convenient, which is especially important during fuel station transactions since people are traveling or commuting and, therefore, in a hurry. In fact, according to the YouGov Profiles data, 41% chose ease of sign up (only behind quality and selection of rewards) as the most important when choosing a gas station rewards loyalty program.

That’s why having an updated point-of-sale technology, like Verifone, that uses biometric authentication can be a competitive advantage. Being able to instantly link customers to their loyalty account, rewards, and order history can drive a more personalized fueling and in-store shopping experience.

Instant sign-in means there's no fumbling around with cards, inputting phone numbers, or remembering app passwords required. Customers also don’t have to worry that they forgot their loyalty card at home or left their phone in the car if their fingerprint or palm can automatically bring up their loyalty account.

Fuel station owners can also benefit from the faster transaction times and increased customer satisfaction that biometrics can enable.

Unlock stronger customer relationships

By simplifying enrollment and sign in and speeding up transactions, customers will find it easier to access and stack their loyalty reward accounts, all while keeping their data safe and secure. This can improve trust, deepen brand relationships, and ultimately, drive repeat business to ensure your station’s long-term competitiveness in a highly saturated industry.

As one example, members of Shell’s loyalty program fuel up four times more, purchase three times more premium gasoline, and shop twice as much in convenience stores as non-members.

Just imagine how retaining more customers who spend more at the pump and in-store can impact your business.

Loyalty and biometrics: The next generation

Revamping your loyalty program to allow stacking and incorporate biometric sign-in isn’t the heavy lift you might assume it is. Providers like Verifone can help you get started by having the right POS solutions for your needs.

Here are three steps to ease into these upgrades:

• Test it out. Choose a high-traffic location to test out biometric hardware, like facial or palm-vein scanners, at pumps or in-store.
• Make sure it's compatible. Having everything work together seamlessly is key, so make sure your POS provider has the ability to integrate these technologies.

• Enable reward stacking. The more opportunities your customers have to use rewards, the more motivated they will be to do business with you.

   

Discover how to elevate your loyalty program with Verifone.