Energy & Commodities

How Fuel Retailers Can Grab Market Share Through Personalization

The fuel retail industry is clearly facing significant change. Fuel retailers and their consumers are experiencing this change from very different points of view. In this environment, fuel retail companies have a lot on their plate. They are thinking about how to preserve their dividends, how to preserve cash and how to reduce costs and inventory. Meanwhile, their customers have undergone a major behavior shift. Personal health and safety concerns are paramount, with considerations such as whether they are safe going to the fuel station, or if contactless service and payment are available. The challenge for industry leaders will be how to bridge this gap—addressing the consumers’ worries while meeting company goals.

Personalize through data

Personalization has become key to bridging the gap between company and consumer needs. By understanding the behavior profiles of consumers, a company can identify trends and create personalized messaging to go hand-in-hand with product and service offers.

Consumer requirements are continually evolving, region by region, city by city. Keeping tabs on this development is important. People want to know if the convenience store attached to the fuel station can deliver groceries, and what products are stocked in order to make fewer stops. They want to stock their pantry in addition to keeping their gas tank full.

For example, fuel retailers must rethink their offers to satisfy customer safety requirements. Contactless payment as a service must be clearly advertised, for example, through a text message or email. Traditionally, fuel retail promotions have been around discounts on fuel, without providing a new service. With contactless, fuel stations must ensure that they have the technology they advertise. The approach we recommend is to continually look at consumer behavior signals and identify what new or updated services the retailer should offer (for example, hand sanitizers, contactless payment, C-store ecommerce, etc.) and have a coordinated communication campaign.

How fuel retailers can personalize offerings

Fuel retailers can personalize their offerings using the Publicis Sapient and Epsilon approach of combining Data, Technology and Experience.

Data – Fuel retailers can access around 200 million customer profiles in the U.S. alone. Similar volumes of data are available in Western Europe, as a lot of available data is compliant with privacy laws including General Data Protection Regulation (GDPR)—a regulation in EU law on data protection. Accessing and unlocking data profiles are the lynchpin to understanding behavior profiles of a large consumer base. We look at the aggregate data and trends to gain a deep knowledge of consumer signals and key moments by audience and geography. Traditional companies have used cookies, which last a day or two. However, platforms such as the Epsilon PeopleCloud are more persistent by connecting the behavior to devices and people. This data provides a 55 to 60 percent accuracy when matching data points. Compared to the industry average of media companies, which is usually between three and four percent. Therefore, using the latest technology to utilize data is a significant competitive advantage.

Technology – Technology allows a fuel retailer to correlate behaviors from different data sources into a single profile. For example, if a consumer has visited certain places, spent money on certain websites and watched various TV shows, this data from different sources can be correlated into key behavior points. The Epsilon PeopleCloud is a data and activation platform used to activate, personalize and drive performance with the power of deep customer understanding. The machine learning algorithms are continually refining the matches as new data points and signals come in. This platform also measures the effectiveness of the various programs so that a marketing team can make a proactive decision rather than a look-back. In addition to communication and measurement, companies also need to ensure that the overall digital experience and offline experience (as described in the next paragraph) are integrated with the data. Because history is no longer a guide to the future, how retailers forecast demand and adjust supply accordingly will need to change. This is another area where consumer behavior signals can help chart a path forward.

This approach should not be a one-time event. Once the technologies are in place initially, retailers need to think about how to evolve. This is because consumer sentiment and behavior are also changing week to week and location to location. The idea is to build a data-technology-experience “flywheel” that will allow retailers to continually adapt to evolving sentiments and behaviors.

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