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Of the changes that have taken place in the retail fuels environment over the past decade, loyalty programs appear to have had the greatest impact in changing consumer behavior, based on the report’s findings. The NPD report, which examines how fuel buyers perceive and use deal and loyalty programs and identifies the potential opportunities and threats for fuel retailers, finds that of the 3,740 consumers surveyed, 28 percent reported participating in a motor fuel brand loyalty program.
Loyalty programs that offer cash discounts are of particular interest to the fuel buyers surveyed for the report. Thirty-eight percent of these consumers said they were more likely to use gas brand loyalty programs that offered cash discounts. Interestingly, female consumers were more likely to be swayed by these cash discounts than males. Even among non-users of gasoline brand loyalty programs there is interest in participating, however they want a little more incentive to join. Notably, these potential customers want even greater discounts, according to the Price, Deals, and Discounts: Consumer Expectations at the Pump report.
In terms of discounts, the NPD report finds that two out of three fuel buyers reported switching brands due to price. More than one-third of all gas buyers said it would take a discount greater than 10 cents per gallon to get them to switch gas brands, while one in 10 said they would not switch for any type of discount. Discounts of 10 cents and less are swaying the bulk of this behavior in the marketplace.
“Clearly fuel discounts are a game-changer in today’s market,” says David Portalatin, NPD motor fuels industry analyst. “Whether or not fuel marketers implement a discount program, it is imperative that they create value for the consumer in some aspect of the purchase occasion — whether price, quality, rewards, or some other attribute of the purchase experience.”
About The NPD Group
The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, entertainment, fashion, food / foodservice, home, office supplies, sports, technology, toys, video games, and wireless. For more information, visit npd.com.
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