This document outlines a presentation on driving more traffic into stores with rewards and communications programs. It discusses trends in loyalty programs, case studies of c-store loyalty programs that increased fuel purchases by 10% and in-store purchases by 15-16%. The presentation covers how to start a program, promote it through email and text using a web-based solution, and keys to success like giving customers what they want and keeping the program fresh.

1. “A Case Study - Drive More Traffic
Into Your Store with Rewards and
Communications”
Brent Harms – Founder & CEO

2. Why are you Here?
• Thinking about a rewards program and want
to see potential results?
• Have a rewards program and want to see how
it compares?
• Want to learn what options are available?
• Looking for new ideas to drive more revenue?
Perfect – you are at the right session!

3. Plan for this Session
• Brief overview
• Reward Programs – Trends and Results
• Case Studies
• Promotions and Communications
– Identify your Customers
– Promote to your Customers – email and text
• How to Start a Program and Keys to success
• Time for Comments and Questions

4. Tecmark Overview
• Over 10 years supporting loyalty programs
• Focus on retail, restaurant, and hospitality
• Loyalty platform, web tools, and POS tracking
• Complete email and text support (SIMPLI®)
• Clients range from 1-over 2,000 locations
• Recently entered C-store space
• Integrated with Gilbarco, adding others

5. Programs Come in Many Flavors

6. Common C-Store Programs
Grocery
Pump
Discount
In-store
Pump
Discount
Pump
Discount
Clubs–
buy 10 get
one free
Points
based on
purchase

7. C-Store Industry Reports
• Economics of Loyalty (NACS report 2010)
– 5%↓ defection, 3%↑ ticket, 5%↑ frequency, and
0.5%↑margin (after program costs)
• Case Studies from NACS Show Presentations:
– FAS Mart (200 locations) – Average member spend
up $1.30 in store and 2 more gallons per month
– Express Convenience Centers (28 locations) –
loyalty customers increased spending by 9%

8. • C-Store loyalty results lower but consistent
with other industries (including programs we
manage in retail and restaurant)
• Will improve with better programs/delivery
• Key results from other industries:
– Increase in visits 10 – 22%
– Increase in amount spent 15 – 25%
– Decrease in attrition 10 – 15%
– ROI Over 500%
Loyalty Program Results

9. Increase in fuel purchases 10%
Decrease in drive-offs 80%+
Increase in in-store purchases 15%+
Specific C-Store Targets

10. • Point program where members receive 20 points per
dollar in-store and 10 points per gallon purchased
• Base award of $5 for every 5,000 points (tiered up)
• Implemented a merchandise discount program for
members providing specific discounts on specific
days just for members (may get partners to pay)
• Used driver’s license to enroll new members
• Could not capture email at POS, so provided bonus
points for members to go online to provide email
C-Store Case #1 – 34 Locations

11. • Over 30,000 members
• Number of gallons purchased went up 10%
• 98% of new members used the driver’s license to
enroll improving the accuracy of the data and the
speed of enrollment
• In-store merchandise purchases increased by 16%
• Only 11% of members went online to give the email
address so additional promotional activities were
implemented to increase email database
Results after 6 months

12. • Members receive $0.03 off per gallon of gas
• 2 additional benefits for members who provide
an email or text number:
– Coffee club – buy 10 and get one free
– Merchandise specials just for “registered” members
which are discounted or free items that change from
week to week
• Use driver’s license to enroll new members
• Loyalty members do not have to pre-pay if paying
cash for fuel
C-Store Case #2 – 18 Locations

13. • 15,000 members
• 100% of new members used the driver’s
license to enroll improving the accuracy of the
data and the speed of enrollment
• Drive-offs decreased by over 80%
• Over 33% of members went online to provide
email address or mobile number
• Customers coming into the store increased
from 70% to 75%
Results after 7 months

14. Other Program Examples
• C-Store/Grocery partners like Holiday and Cub with
card for discounts at pump based on grocery spend
• Super America, point program for gas and in-store
purchases, many redemption options, plus clubs
• Paper coupons for discounts on gas paid in store like
Kwik Trip/Holiday (other coupon offers as well)
• POS systems have modules to automate discount and
club programs using integrated partners for delivery
of programs (including Tecmark)

15. Enrollment Made Easy
Use a terminal to
swipe or scan
driver’s license to
capture accurate
data, then add
email/mobile
number online Encourage
and incent
members to
join through
your website
Have paper
applications that
you can enter
online when
business is slow

16. You have members……now what?
Get them in the door!!!

17. Create Promotions!
Offer merchandise discounts for
members - $1 off your favorite
Pepsi product!
Birthday specials – free coffee
on your big day!
Double points for grand
openings, or just on slow days

18. Promotions are set – How do
Members know?
• Time for EMAIL and TEXT Marketing
– Communicate to your members the way they
want either email or text
– Using a web-based solution gives you the tools
and flexibility to design your email and your text
message
– Track how many members open your emails and
watch them come in for the offers
– Get reporting about number of redeemed offers

19. Results that Drive Traffic
• So you send out a bunch
of emails – who really
opens them?
– Industry average – 25 –
30% opened
– Promotion redemption
rates vary wildly based on
offer – usually between 20
– 40%
– You send 1,000 emails –
300 will be opened and
you now have 60 – 120
customers coming in the
door the day of your
promotion!

20. Text Results
• Text marketing is extremely effective in the C-
Store Market, especially with 18 – 30 year olds
– 95% have phones that receive texts
– 98% read every text they receive and usually
within 15 minutes of receiving them
– Redemption rates range from 20% - 70% -
compare that to print or direct mail advertising
with a 1.5% redemption rate

21. Next Steps
• Identify your goals and objectives
• Determine customer needs
• Understand your competition
• Define your program
• Use experts
• Find the right partners
• Execute, execute, execute!!!

22. Keys to Success
• Give your customers what they want
• ROI, your investment should deliver results
• Make it fun and easy for your customers
• Keep it simple for staff
• Training is critical
• Keep the program “fresh”
• Connect with your customers

23. Time for Comments and
Questions
Brent Harms, Founder & CEO
Erika Stevens, Interactive Marketing Manager
651-452-9551
www.loyaltymarketing.com