Visible Results News - Article

HOW A GROUP OF INNOVATIVE KIWIS IS MAKING LOYALTY VISIBLE FOR C-STORE CUSTOMERS

Colloquy, Spring 2005. Volume 13, Issue 1.

by Kate Fitzgerald

Some of the most innovative loyalty marketers in the US use new technologies often developed outside of the country, where fuel prices tend to have less elasticity.

Visible Results, the Auckland, New Zealand-based operator of loyalty card products for high-volume, low-margin retailers in Australia, Europe, New Zealand and the US, says it expects the fuel-convenience channel to be one of its biggest growth areas this year.

In the US, the company's prime customers are small to mid-size C-store retailers in non-urban markets, particularly those intent on converting their lower margin, fuel-only customers into users of the backcourt as well, says George Stevens, General Manager of the company's Overland Park, Mo.-based US operations.

The centerpiece of Visible Results' retail loyalty program is a transparent, rewritable card that displays a customer's new point balance after every transaction. The patented technology is especially popular with C-store customers, says Stevens, who tend to be in a hurry and prefer immediate results. The ultra-thin "GraphiCard," just one-third the thickness of a typical plastic card, tabulates promotional currency totals in real time. "There's nothing to explain to the customer; he buys something and shows the clerk his card, and he sees his new points immediately, which makes him want to come back again and repeat the experience," says Stevens.

So far, five regional fuel-convenience operators have adopted the GraphiCard system since 2002. Its biggest US client in the sector is Whitesburg, Ky.- based Childers Oil and its 50 Double Kwik fuel convenience stores in Kentucky and Virginia.

Childers adopted Visible Results' system last year, giving its customers the chance to accumulate points for any fuel or retail purchase and redeem them for store merchandise. The program generally offers customers a $3 to $5 value for every $100 spent at Double Kwik.

In launching the program, Double Kwik's goal was to increase customer trips inside the backcourt, improve weekend traffic and boost traffic among women, says Stevens. "There are major growth opportunities for convenience stores in driving more overall business on the weekends, and more business in general from women. Our research shows most women could be making two more trips per week to the convenience store with good incentive," he says.

Through its centralized CRM hub, Visible Results keeps real-time track of each of its clients' customer database file, and also allows retailers to cross-promote with partner or coalition brands, says Stevens. Since installing Visible Results' Graphicard-based system last year, Double Kwik's overall sales have increased, but the company declined to disclose hard numbers. Retailers can implement Visible Results' system for as little as $1,500 and up to $10,000 for a larger, more elaborate system.

Retailers regardless of size pay an ongoing maintenance fee of about $250, which includes database management, marketing campaigns and promotion. For retailers who want to play in the loyalty sandbox but who can't afford the Tonka trucks that the big boys play with, Visible Results at least provides them with a handy pail and shovel.

www.colloquy.com

Source: Colloquy, Spring 2005. Volume 13, Issue 1 (www.colloquy.com)