Convenience Store News

FEB 2017

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68 Guide to Consumer Insights | FEBRUARY 2017 | WWW.CSNEWS.COM where a double-digit loyalty differential (12.7 points) was seen in the percentage who purchase. Loyalty program participation also has a notable impact on the number of times c-store shoppers pur- chase a particular product category in a given month. The categories demonstrating the biggest variance in purchase frequency, according to CSNews' 2017 Realities of the Aisle research, are cigarettes and hot dispensed beverages. Those enrolled in a loyalty program buy cigarettes from a c-store 9.86 times per month on average, vs. 7.38 times for those not enrolled. Similarly, those enrolled purchase hot dis- pensed beverages — like coffee, tea, cappuccino and hot chocolate — an average of 7.31 times a month vs. 5.29 times, respectively. The most compelling difference between c-store loy- alty program participants compared to non-participants, however, is seen in the amount spent on a particular product category in a given month. Those enrolled spend a whopping 40.4 percent more on beer/malt bev- erages per month than those not enrolled — $45.98 vs. $32.75. This category, by far, had the most variation. Other categories with a sizeable difference in spend- ing among c-store loyalty program participants vs. non-participants are: cold/frozen dispensed beverages (participants spend 37.4 percent more per month); packaged beverages (22.3 percent more); hot dispensed beverages (21.7 percent more); cigarettes (21.3 percent more); and gasoline (20.1 percent more). Overall, c-store shoppers enrolled in a loyalty pro- gram spent 38.7 percent more on their last purchase than c-store shoppers not enrolled — an $18.68 ring, compared to a $13.47 ring. Considering these differentials, convenience store retailers should also take note that a little more than a third (36.1 percent) of the 1,505 consumers surveyed by CSNews said their usual convenience store does not have a loyalty program, but they would enroll if it did. "Loyalty programs are great. Even something as simple as 'buy so many beverages, get one free' works. Also, refill options make me come back," one respon- dent suggested. "I am a big believer in loyalty programs, especially on gas and made-to-order beverages/food. Prices should be reasonable, not a huge mark-up," another participant stated. CSN TOTAL ENROLLED NOT ENROLLED Cigarettes 8.32 9.86 7.38 Hot dispensed beverages 6.13 7.31 5.29 Cold/frozen dispensed 5.20 6.02 4.59 Gasoline 4.68 5.09 4.42 Beer/malt beverages 4.65 5.62 4.05 Prepared food 4.24 4.74 3.91 Packaged beverages 4.04 4.80 3.56 Candy/gum 3.15 3.45 2.96 Base: Respondents who purchased each category Source: Convenience Store News Market Research, 2017 TOTAL ENROLLED NOT ENROLLED Gasoline $96.81 $107.80 $89.75 Cigarettes $79.43 $88.59 $73.05 Beer/malt beverages $37.89 $45.98 $32.75 Prepared food $33.22 $36.68 $30.87 Hot dispensed beverages $15.89 $17.63 $14.49 Packaged beverages $12.19 $13.71 $11.21 Cold/frozen dispensed $11.79 $13.89 $10.11 Candy/gum $7.80 $8.59 $7.25 Average spent on last purchase $15.59 $18.68 $13.47 Base: Respondents who purchased each category Source: Convenience Store News Market Research, 2017 How many times in the past month did you purchase each category at a convenience store? How much did you spend in the past month on each category at a convenience store? Overall, c-store shoppers enrolled in a loyalty program spent 38.7 percent more on their last purchase than c-store shoppers not enrolled — an $18.68 ring, compared to a $13.47 ring. Do you typically shop at the same convenience store each time? 66.0% 61.2% 34.0% 38.8% Base: 1,505 total respondents Source: Convenience Store News Market Research, 2017 Enrolled Not Enrolled Yes No

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