Convenience Store Loyalty Shifts From Price to Place, Vontier Research Finds
Event summary
- Vontier research indicates that 24% of US drivers, the 'Super-Users' who generate disproportionate revenue for convenience stores, are motivated by factors beyond price.
- The study, based on a survey of 600 US drivers, reveals that frequent convenience store visitors prioritize familiarity, safety, and a sense of community over discounts.
- Millennials and Gen Z are driving a shift towards food and beverage purchases at convenience stores, viewing them as cultural hubs rather than simple fuel stops.
- Car washes are increasingly becoming a lifestyle habit, particularly among younger drivers, with Gen Z showing interest in bundled wash/loyalty programs.
- EV drivers prioritize experience factors like safety and amenities when selecting charging locations, extending dwell times and creating opportunities for retailers to build loyalty.
The big picture
Vontier's findings challenge the conventional wisdom in convenience retail, which has historically focused on price-driven loyalty programs. This research suggests a fundamental shift in consumer expectations, driven by generational changes and a desire for community and experience. The company's technology stack is positioned to capitalize on this trend, but success will depend on its ability to effectively integrate technology with the human element of the retail experience.
What we're watching
- Cultural Adaptation
- Whether Vontier’s technology solutions can effectively translate this shift in consumer behavior into tangible improvements in retailer profitability and market share.
- Gen Z Influence
- How the increasing importance of food and beverage, and car wash services, will impact the overall product mix and profitability of convenience stores.
- EV Integration
- The pace at which convenience retailers can leverage extended EV charging dwell times to build brand loyalty and drive ancillary revenue streams.
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