About 7-Eleven Australia:
7-Eleven was brought to the Australian market over forty years ago in 1977, and remains a private family-owned company today. With over 670 stores owned by the company itself and franchisees, it commands a 33.5% market share, turning over in excess of $3.6bn per annum from more than 190 million transactions. As the third largest private company in Australia, it is the market leader in convenience retail, with a focus on partnerships such as Krispy Kreme and Mobil, and a net promoter score that has increased by thirty-seven points since this measurement began in 2010.
In this article, we explore some of the reasons why.
World’s First Fuel App:
By far the biggest focus for 7-Eleven Australia in recent years has been the launch of its fuel-focused app in March 2016 – a world first. It’s perhaps still the only major retailer worldwide offering this customer-focused single-minded benefit. Lowest fuel prices – guaranteed.
The app is firstly a fuel price research tool with fuel prices updated hourly – and also offers a “fuel price lock” that gives customers peace of mind that they are always getting the best possible value – so why would they re-fuel anywhere else?
Already more than one million Australians have downloaded the fuel app since it launched, collectively saving more than $4.5 million on fuel purchases, with an average saving per fuel voucher of $4.59. It’s a clear consumer benefit, based entirely on price, and is one of the key reasons that 7-Eleven has won the “Most Satisfied Customers” Award as voted independently by over 2,000 retail customers in January this year.
7-Eleven Australia’s Fuel App
7-Eleven Australia Fuel App – How Does It Work:
- The customer needs two things. The 7-Eleven fuel app, and a 7-Eleven card pre-loaded with cash.
- The app uses geo-location technology to identify the five closest fuel stations to the customer.
- The app is kept updated hourly with the pricing of its entire station network.
- Customer chooses their preferred fuel type and the lowest price on sale in their area.
- Customer decide how much fuel they want to buy and lock-in that fuel price to use anytime in the next 7 days – in any store in the country that they choose.
- Once they’ve re-fueled, they simply scan the fuel voucher lock barcode at the point of sale to avail of the lower pricing.
- If the fuel price has dropped since the voucher price was locked-in, the customer benefits again (always) from the lower price.
- The customer can pay using the 7-Eleven card (used to lock in the price) – or any of the usual credit or debit cards accepted in store. Payment is only taken at the time of purchase.
- The app also includes a range of in-store product offers for customers who are not re-fueling, with estimates that over 700,000 offers have been redeemed in it’s first year in use.
The whole process is explained clearly in this 30 second TV commercial used at launch.
Fuel App TV ad from 7-Eleven Australia
Future Focus:
Alongside its focus on this digital innovation, 7-Eleven seems focused on adding alcohol to its extensive selection of products on offer to Australian consumers. The company recently welcomed the Senate Committee’s recommendation that Australian convenience stores should follow others around the world and be allowed to sell alcohol within the same regulatory frameworks as other retailers.
Alongside that recommendation, the firm has announced an investment in Tipple – Australia’s largest on-demand alcohol delivery start-up which promises alcohol deliveries within 30 minutes from independent bottle stores. For now, the partnership has been described as continuing to operate as stand-alone businesses with the start-up offering “last-mile delivery and technological capability” to it’s new parent company.
However with alcohol now a real possibility as a new category for 7-Eleven in the Australian market, there are plenty of opportunities to extend the appeal of the brand nationwide, with the start-up’s CEO, Ryan Barrington, describing a shared interest between the two firms in creating “engaging customer experiences on the cutting edge of convenience.”
Closing Thoughts:
7-Eleven Australia is clearly focusing on achieving customer loyalty based on price. While this can be effective when the brand commands the greatest market share, it is also the easiest for competitors to challenge.
We all know as consumers that when pricing feels equal, we then choose the brand that gives us a greater sense of connection. Loyalty is a two-way relationship – knowing that we are valued and rewarded drives greater longer-term brand loyalty than pricing ever will. No doubt with their focus on innovation , 7-Eleven Australia will continue to identify all of their customer needs and develop additional unique benefits to customers to ensure they remain the market leader even beyond price.
About Us:
Liquid Barcodes is a leading global loyalty technology company specialized for the convenience store and foodservice industries. Our proprietary cloud-based technology platform allow retailers to create and manage their digital marketing campaigns with a proprietary process we call the “customer connection cycle’ to engage, promote and reward customers activities in real-time across digital and media channels.
How we do it:
We have developed the most advanced loyalty and digital marketing technology platform specifically for convenience store and foodservice retailers globally.
Retailers use our self-service dashboard to create and manage loyalty driven marketing campaigns that increase purchases with their existing customers, as well as effectively target and acquire new customers through partners or paid media channels.
One core component of live loyalty is gamification. We have gamified branding, loyalty and promotions. We believe this approach is essential in order to get customers’ attention and ultimately truly engage them with repeatable actions thereby winning their loyalty.
Check out some of our exciting/proven results here:
About Me:
Chief Content Officer, Liquid Barcodes and Independent Loyalty Consultant.
With over twenty-five years marketing experience, I specialise in loyalty marketing consulting, managing consumer loyalty propositions, strategy and operations. In addition to working with Liquid Barcodes, my clients have included Telefonica O2, Three Mobile, Electric Ireland, Allied Irish Bank and The Entertainer, as well as Avios – the global points currency for some of the world’s top airlines. I am also a judge for the Loyalty Magazine Awards.
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