Pay-at-the-pump technology has proven to be a double-edged sword for convenience stores. The technology offers convenience, yet it keeps customers from routinely entering the store to purchase higher-margin items. Roughly only 40 percent to 45 percent of pay-at-the-pump customers go into the store, according to Peter Kaszycki, president of Pro-Tech, an Atlanta-based kiosk manufacturer.
C-store operators have tried a variety of ways to market their in-store merchandise at the pump, including advertisements on pump toppers and fuel handles. Those static forms of advertising can’t compare to the dynamic advertising offered by kiosks, noted Kaszycki. He added that the average customer spends about four-and-a-half minutes fueling his or her car. In that time, a kiosk can suggestively sell food or merchandise, promote in-store specials and present coupons.
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Many C-stores now offer made-to-order foods 24 hours a day. Outdoor kiosks entice morning fuelers with ads for hot coffee and pasteries. Lunchtime customers are lured inside by the promise of a combo meal and drink special. Busy moms stopping for gas on their way home from work are tempted to pick up pizza as an easy dinner solution. These scenarios are further enhanced by loyalty programs and coupons for return visits. To offset costs, C-store operators often accept paid ads from merchants, such as soft drink companies, to run on the kiosks.
Racing to attract customers
Sunoco NASCAR is one C-store chain incorporating kiosks into to its pay-at-the-pump fuel islands. However, unlike many C-stores, Sunoco NASCAR does not sell made-to-order food. Instead, these stores sell Sunoco “Official Fuel of NASCAR” merchandise including caps, flags, shirts and scale model cars.
Kaszycki explained that Sunoco NASCAR customers use Pro-Tech’s outdoor kiosks at the pump to view NASCAR collectibles. These items offer a much higher profit margin than fuel and are often an impulse buy. And Kaszycki added that it is not unusual to see a 24 percent increase in store traffic after kiosks are installed.
“The convenience store operators have realized an increase in sales based on customers coming into the store,” said Tom Daniel, CEO of CTS Group. CTS provides graphical software interfaces for kiosk integration in the C-store and self-storage markets; Sunoco NASCAR is a CTS Group customer.
Daniel added that the increase in sales is directly attributable to customers interaction with the kiosks. Sunoco NASCAR will incorporate Pro-Tech’s outdoor kiosks in 50 to 75 stores over the next year.
