Your SlideShare is downloading. ×
0
2011 TRENDS INFLEET CARD PAYMENT SOLUTIONSDan StielStiel Direct LLC
Embracing the Payment Solution to Build Market ShareTODAY’S FLEET MARKETER’SCHALLENGE                                     ...
Our Goal Today –Present You the Most Relevant Information & Trends in Fleet Cards                                         ...
STIEL DIRECT’S QUALIFICATIONS Principals experienced working with all major fleet card issuers    Fuelman, WEX, Voyager,...
STIEL DIRECT’S FLEET PAYMENT STUDY Focused on entities that owns or operates from 5 to 300,000 vehicles  for business pur...
TYPES OF FLEET VEHICLES STUDIED Fleets operating automobiles, motorcycles, light-duty trucks, and heavy-  duty trucks Fu...
RESEARCH & INFORMATION SOURCES   Stiel Direct’s proprietary research methodology weighted against industry     demographi...
A DEFINITION OFIMPORTANT TERMSFleet Industry Terminology
ENHANCED FLEET DATA Includes all of the following:     Odometer readings     Product purchase detail - products/grades,...
A HISTORY OF FLEET CARDS Government agencies and private enterprise have used oil company  credit cards and proprietary o...
THE VALUE OF ENHANCED DATA The basis for flexible reporting tools - exception, tracking, and control  reports Used to mo...
TRENDS IN FLEET PAYMENTS Among all fleets studied, use of cards is growing 15% annually    42% use Enhanced data fuel ca...
GOVERNMENT PAYMENT SOLUTIONS  Use of fleet cards is a major initiative for Federal, State, and Local Agencies  Governmen...
FLEET PAYMENT SELECTION METRICS        Attribute                   Importance   Fleet                                     ...
HOW DRIVERS USE FLEET CARDS Off-site fueling     Fuel Only (85%)     Both Fuel & Maintenance (10%)     Fuel, Maintenan...
THE MARKET FOR GENERAL PURPOSEFLEET CARD PROGRAMS Less than 5% of fleet managers are comfortable with their vehicle  oper...
TRENDS IMPACTING FLEET CARDS Increased use of enhanced data-capture fleet cards for all variable fleet  expenses     Fue...
TRENDS IMPACTING FLEET CARDS Integration of fleet variable expense management into corporate  purchasing/accounting legac...
TRENDS WHERE FLEETS PURCHASE FUEL Among fleet operators of all types, fuel is purchased from over 195,000  fueling sites ...
FLEET CARD REPORTING TRENDS Fleet managers increasingly want reports that are comprehensible,  comprehensive, useful, fle...
EXCEPTION REPORTING TRENDS Fleet Card data is increasingly used to identify exceptions to fleet  policies, practices, and...
TRENDS IN FLEET VEHICLE REPAIR,AND MAINTENANCE EXPENSES For every dollar spent on fuel, fleets spend an additional 20 to ...
NEWEST TRENDS GPS Technologies                            Mobile Technologies    80% of business fleet operators       ...
MOST VALUABLE FLEET CARD REPORTINGINFORMATION Date, Time, Location of Purchases Cost Per Mile Brand & Types of Fuel/Ser...
TRENDS IN FLEET CARD ENHANCEMENTS Fleet Cards are adding valuable enhancements    Driver Assistance Center    Auto Rent...
Fleet CardSTIEL DIRECT STUDYCONCLUSIONS                     26
FLEET CARD STUDY CONCLUSIONS Enhanced Fleet Cards increasingly delivers significant value to fleet  vehicle operators by ...
MORE CONCLUSIONS 95% of Fleet Managers prefer payment solutions that limit usage to  vehicle related expenses when approp...
Dan StielPrincipal ResearcherStiel Direct LLCwww.stieldirect.comTHANK YOU!                       29
Upcoming SlideShare
Loading in...5
×

Fleet Credit Card Study 2011

6,203

Published on

Executive Summary of the 2011 Stiel Direct Fleet Credit Card Study.

Published in: Business, Economy & Finance
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
6,203
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
266
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Transcript of "Fleet Credit Card Study 2011"

  1. 1. 2011 TRENDS INFLEET CARD PAYMENT SOLUTIONSDan StielStiel Direct LLC
  2. 2. Embracing the Payment Solution to Build Market ShareTODAY’S FLEET MARKETER’SCHALLENGE 2
  3. 3. Our Goal Today –Present You the Most Relevant Information & Trends in Fleet Cards 3
  4. 4. STIEL DIRECT’S QUALIFICATIONS Principals experienced working with all major fleet card issuers  Fuelman, WEX, Voyager, Visa Fleet, others Over 25 years individual experience in fleet and commercial credit card marketing and product development  Bank of America, First Interstate Bank/Wells Fargo, Visa USA, Citibank, Chase, others Formerly Director of Payment Systems for Tosco & Circle K In-depth market research capabilities 4
  5. 5. STIEL DIRECT’S FLEET PAYMENT STUDY Focused on entities that owns or operates from 5 to 300,000 vehicles for business purposes on public roads during 4th Quarter 2010 Across a broad scope of private & public sector fleet operators throughout the United States Designed to measure fleet payment preferences, and the opportunity for fleet merchants to use the payment proposition to build market share Help clients define the impact of changing payment habits and preferences of fleet operators across the United States 5
  6. 6. TYPES OF FLEET VEHICLES STUDIED Fleets operating automobiles, motorcycles, light-duty trucks, and heavy- duty trucks Fueled with gasoline, diesel, or an alternative fuels, such as propane, natural gas, or electricity Fleet vehicles that refuel and obtain maintenance services at a retail service stations, truck stops, cardlocks, and private on-site fueling facilities 6
  7. 7. RESEARCH & INFORMATION SOURCES  Stiel Direct’s proprietary research methodology weighted against industry demographics  Telephone survey to 200 fleet managers  Mail-in survey to 3,500 small business owners  Focus Group panels in three cities  United States Department of Energy  United States Department of Transportation  Syndicated fleet card studies 7
  8. 8. A DEFINITION OFIMPORTANT TERMSFleet Industry Terminology
  9. 9. ENHANCED FLEET DATA Includes all of the following:  Odometer readings  Product purchase detail - products/grades, and quantity/gallons purchased  Driver and/or vehicle IDs  Fuel Tax information  Financial & Transaction detail - date, time, location, spending, etc. 9
  10. 10. A HISTORY OF FLEET CARDS Government agencies and private enterprise have used oil company credit cards and proprietary on-account billing systems since at least the 1930s Enhanced fleet cards introduced in 1980s & 1990s to fight fraud, misuse, and provide improved management reporting  Fuelman, Wright Express, and many others introduced their own brands of fleet cards  Oil Companies improved offerings  Banks and Card Networks have offered specialized purchasing cards for fleet operators 10
  11. 11. THE VALUE OF ENHANCED DATA The basis for flexible reporting tools - exception, tracking, and control reports Used to monitor vehicles and driver performance:  Evaluate expense efficiency  Monitor policy compliance  Analyze purchasing patterns 11
  12. 12. TRENDS IN FLEET PAYMENTS Among all fleets studied, use of cards is growing 15% annually  42% use Enhanced data fuel cards  27% use Basic oil company proprietary cards  20% to 35% use Bank cards, ATM/debit cards, and T&E/Corporate credit cards  10% to 20% still use cash or direct billing arrangements with local fuel marketers/distributors, but is declining in favor of fleet cards Note: Numbers total more than 100% due to multiple payment options used. 12
  13. 13. GOVERNMENT PAYMENT SOLUTIONS  Use of fleet cards is a major initiative for Federal, State, and Local Agencies  Governments seeking enhanced solutions for managing fleet expenses - Fleet Cards considered key component of fuel and fleet expense management  Key Strategic Initiative for many fleet suppliers  Government agencies decision making varies by agency, and was included in study database 13
  14. 14. FLEET PAYMENT SELECTION METRICS Attribute Importance Fleet Rating Cards  Consistent Pricing High Yes  No Fees High Varies  Discount Pricing Opportunity High Yes  Fraud Protection High Yes  Wide Site Acceptance High Yes  Detailed Reporting Medium Yes  Maintenance Reporting Medium Yes  Card-less Transponders Medium Future 14
  15. 15. HOW DRIVERS USE FLEET CARDS Off-site fueling  Fuel Only (85%)  Both Fuel & Maintenance (10%)  Fuel, Maintenance, Business Expenses (3%)  Maintenance Only (2%) On-site fueling & maintenance facilities  Various accounting practices, but little fleet card usage 15
  16. 16. THE MARKET FOR GENERAL PURPOSEFLEET CARD PROGRAMS Less than 5% of fleet managers are comfortable with their vehicle operators having the ability to use cards to conduct transactions beyond vehicle expenses  Overnight vehicle travelers, including long-haul truckers and sales people  Executives and traveling sales personnel driving company cars Limited benefits for the vast majority of fleet managers 16
  17. 17. TRENDS IMPACTING FLEET CARDS Increased use of enhanced data-capture fleet cards for all variable fleet expenses  Fuel, maintenance, repairs, vehicle appearance/care, replacement vehicle rental Increased use of exception reporting based on fleet credit card transaction data Improving Web-based card/driver account management control systems and reporting 17
  18. 18. TRENDS IMPACTING FLEET CARDS Integration of fleet variable expense management into corporate purchasing/accounting legacy systems Wireless and transponder technology will improve vehicle data gathering, reporting, and analysis 18
  19. 19. TRENDS WHERE FLEETS PURCHASE FUEL Among fleet operators of all types, fuel is purchased from over 195,000 fueling sites  Retail service stations: 75%  Cardlocks & truck stops: 17%  On-site fueling facilities: 8% On-site fueling is continues to be viable to many operators, but is declining rapidly  Fleet Cards can provide enhanced control and accounting advantages when used at on-site fueling facilities 19
  20. 20. FLEET CARD REPORTING TRENDS Fleet managers increasingly want reports that are comprehensible, comprehensive, useful, flexible, and actionable Most fleet managers find sophisticated reporting helps run fleets more efficiently Maintenance reporting is growing in importance as fleet managers continue to become comfortable with enhanced reporting capabilities 20
  21. 21. EXCEPTION REPORTING TRENDS Fleet Card data is increasingly used to identify exceptions to fleet policies, practices, and budgets  The ability to view exceptions by vehicle and drivers allows greater efficiency and flexibility in managing a fleet Fleet operators vary in the exceptions they want reported  Fleet managers establish parameters for each exception when their account is set-up, and change it as needs dictate Fleet Cards offer sophisticated and flexible exception reporting capabilities to fleet operators 21
  22. 22. TRENDS IN FLEET VEHICLE REPAIR,AND MAINTENANCE EXPENSES For every dollar spent on fuel, fleets spend an additional 20 to 40 cents on other fleet variable expenses Fleet Cards are improving information capture on fleet repair, vehicle washes, & maintenance expenses Managers use reporting to reduce expenditures for these activities through vendor negotiation and monitoring procurement 22
  23. 23. NEWEST TRENDS GPS Technologies  Mobile Technologies  80% of business fleet operators  67% of drivers use smart phones use GPS devices in at least some of (described as phones with at least their fleet vehicles web-browsing capabilities)  27% of fleet drivers use GPS to at  23% of fleet owners are “very least “occasionally” to find fueling interested” in in-vehicle mobile locations tablets and apps that improve driver productivity and efficiency  12% of fleet drivers use text messaging to find cheapest fueling locations 23
  24. 24. MOST VALUABLE FLEET CARD REPORTINGINFORMATION Date, Time, Location of Purchases Cost Per Mile Brand & Types of Fuel/Services Bought Other Products/Services Purchased Driver-input Odometer Readings Number of Gallons/Quantities Purchased Price Per Gallon/Unit Paid Total Purchase Amount Miles Per Gallon 24
  25. 25. TRENDS IN FLEET CARD ENHANCEMENTS Fleet Cards are adding valuable enhancements  Driver Assistance Center  Auto Rental Insurance  Emergency Card and Cash Replacement  Liability Waiver Programs  Travel and Emergency Assistance 25
  26. 26. Fleet CardSTIEL DIRECT STUDYCONCLUSIONS 26
  27. 27. FLEET CARD STUDY CONCLUSIONS Enhanced Fleet Cards increasingly delivers significant value to fleet vehicle operators by offering  Enhanced data capture  Robust reporting  Wide merchant acceptance Organizations are attaining positive economic benefits  Proactively using Fleet Card information and controls  Some fleets are integrated reporting of Fleet Card transaction data with Purchasing Card & Corporate Card data 27
  28. 28. MORE CONCLUSIONS 95% of Fleet Managers prefer payment solutions that limit usage to vehicle related expenses when appropriate Less than 5% of fleet managers have a need for Credit Card programs that offer expanded purchasing capabilities beyond traditional vehicle expenses (e.g.,Visa Fleet, MasterCard Purchasing, or AMEX) Merchants need to embrace fleet payment solutions as a cornerstone to effective fleet marketing solutions 28
  29. 29. Dan StielPrincipal ResearcherStiel Direct LLCwww.stieldirect.comTHANK YOU! 29
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×