The following post was originally published in July 2009
Gas stations are particularly dependent on cross-sell marketing and revenue enhancement programs. Yet, as ‘pay at the pump’ has become increasingly popular and cigarette merchandising has become more and more restricted (in Canada), petroleum companies are feeling the profit pinch. As a result, many are looking for solutions to generate higher average revenue per patron.
One gas station I frequent thinks it has the solution. It simply doesn’t refill the spool of paper you get for your receipt when you pay at the pump. They literally force their customers to come inside (especially brutal in the winter months!), even after the customer has chosen the ‘get out quick’ option of paying at the pump. And guess what? They get about 50-60% of those inconvenienced customers buying something when they go inside!
While we don’t advocate revenue enhancement programs that disrupt, inconvenience, or otherwise irritate clients for a 3 in 5 chance of making an extra $2 or $3 dollars, we do recognize the effort to create a process-flow redesign for purposes of driving more revenue. Too bad that customer satisfaction was not factored into this inelegant solution.
The Bottom Line
Petroleum companies, not unlike other clients with whom we work, need to engineer their business flow in a manner that optimizes both the consumer experience AND the revenue potential of their clients. If you’d like to learn more, contact us.