It might seem like c-stores are the last places to be touched by the digital revolution. After all, isn’t convenience the name of the game? Don’t customers run in to make a quick purchase – and the occasional impulse buy? Why would we need to introduce apps, automation, and online ordering systems into this experience?
The truth is that c-stores need to embrace digital transformation. It can make their day-to-day activities (think stock and inventory management) easier. Above all, it can help them stay in contact with customers and offer them the personalized ordering experience they crave.
In this blog post, we’ll show how convenience store owners and operators can use technology to enhance the customer experience and streamline some of the daily tasks of running a c-store.
Digital Transformation Is Happening in Convenience Stores
The digital transformation of the convenience store has already started:
An increasing number of c-store chains have mobile apps; even more have long-standing loyalty programs.
During the pandemic, some c-stores began offering online ordering and contactless, curbside pickup. Many of these stores are still continuing these services, thanks to a very favorable customer response.
A variety of inventory and stock management systems now use AI and automation to monitor the status of items in the store.
While c-store owners may work on a different schedule and scale than grocery and retail businesses, they are affected by the same customer behavior trends. And today’s customers expect personalization and – of course – convenience. Using digital tools is critical to meeting customer expectations and keeping up with the competition.
Let’s look at some areas where data-driven digital technologies are revolutionizing the c-store landscape.
How Innovation Enhances the C-Store Customer and Employee Experience
Mobile Apps
Mobile apps can make the customer’s shopping experience easier, more personal, and more pleasant. This leads to greater customer satisfaction and engagement. Additionally, mobile apps make ideal platforms for tracking and redeeming reward points, accessing personalized offers, and placing online orders.
For c-store chains with many locations, a mobile app can help customers locate (and shop at) a branded store. All of this leads to a better, more engaging customer experience.
The Speedway c-store app is a case in point. According to its Google Play page, users love the convenience of using their phone to search for items, find and redeem coupons, make payments, and keep up with their loyalty rewards. With over a million downloads and a rating of 4.5 stars, it’s easy to see how this app is upping Speedway’s game.
Online Ordering Systems
Mobile apps also make a great gateway to online ordering – although ordering online certainly isn’t limited to mobile customers. Because online ordering systems offer more upsell and cross-sell opportunities, they can drive higher sales. And their convenience is another way to increase customer satisfaction.
Given that convenience stores don’t usually have the manpower of their retail counterparts, some operators wonder how to manage online ordering and delivery services. There are several options for this that don’t have to be managed in-house. For example, services like Grubhub and DoorDash (among many others) offer c-store delivery. Online ordering service providers may offer delivery services as well.
C-store brands are continuing to see the value online ordering and delivery services bring as a means to increase digital sales and meet customer expectations. With many chains beginning to offer mobile ordering, curbside pickup, and third-party delivery, consumers now have more options available to order and engage with their favorite c-store chains, which leads to more potential visits, and higher customer lifetime value.
Loyalty Programs
Loyalty programs may be the part of the digital transformation that c-stores are most comfortable with; according to It’s All Goods, 73% of convenience stores have a loyalty program. Now, it’s time to bring that program into the future by:
Using the program to harness customer data, which can be used for personalization, engagement, and analytics.
Integrating loyalty program data with the rest of the c-store tech stack – again, in the name of more accurate and complete data analytics.
Use personalization and targeted rewards to foster customer retention and satisfaction.
As with QSR and fast casual restaurants, c-stores can face some challenges in crafting an effective loyalty program. You can read more about loyalty program failures and fixes elsewhere in our blog.
Operation and Inventory Management Tools
Now, let’s shift our focus from the customer experience to the employee experience. Technology can streamline some of their daily repetitive tasks, such as taking inventory, checking stock levels, and ordering goods. But today’s tools do much more than that; they can connect payment, ordering, rewards, and point of sale systems. This allows managers a more comprehensive look into the operation of that location; it also reduces out-of-stock situations and allows employees to focus more on customer experience.
In fact, some suppliers and distributors are going high-tech, using techniques like Artificial Intelligence and computer vision to monitor planogram compliance and help with inventory management; items that appear low in stock can be automatically re-ordered.
Personalizing the Customer Experience
According to McKinsey, personalization is what the modern customer craves. 71% of them expect personalized interactions; 76% get frustrated when this interaction doesn’t happen. And there’s only one route to personalization: data.
Leveraging the data provided across the various digital touchpoints in the customer journey can provide a treasure trove of insights. C-stores can use these insights to tailor guest experiences, create targeted campaigns and effective promotions, and find other ways to align customers’ experiences with their expectations. For a deeper look at this topic, check out this inspiration from Netflix’s approach to personalization.
Embrace the Digital Transformation of the Convenience Store
Across industries, digital transformation has become a simple fact of business. For convenience stores, digital transformation promises many benefits, such as increased customer engagement and a more streamlined workflow. If you’d like to learn more about how digital transformation can impact your business, contact Tillster today.
