Convenience retail will continue to evolve.
By James (Jay) Burdette
Since the first purpose-built, drive-up gas station opened in 1913, at a time when there were only 500,000 vehicles on the road, the role of the station has been to provide car-related services. From its main priority, fuel, to things like oil checks, tire pressure fills, and even car washes, the gas station has evolved quite a bit. However, over the past decade or two, the focus has shifted beyond basic car maintenance. Now, stations must offer customers an array of services, spanning their needs as both a driver and a retail consumer. In fact, a Salesforce report showed 62% of consumers expect companies to anticipate their needs. A McKinsey & Company report showed 71% of customers expect personalization from the businesses they regularly frequent.
Noncash retail payment transactions grew 13% between 2018 and 2021 according to McKinsey & Company. The digital payments market is expected to reach $170.95 billion in 2026, according to the Digital Payments Global Market Report 2023. Gas station owners need to spark a digital-first mindset as they look to increase traffic. By maintaining a digital mentality and infusing the latest technology into forecourt operations, gas stations can offer an enhanced experience.
Maximize Time That Customers Spend Fueling With POS Innovation
To make the buyer experience as efficient as possible, gas station owners should look to easy-to-use technology. Solutions like self-serve kiosks allow for customers to pay for their refuel in an easy manner, with the option to add on food and beverage all in one application. Not only do self-serve kiosks give customers an option for a one stop shop, but they also provide gas station owners the opportunity to increase revenue by upselling. With digital kiosks, the average revenue per customer is 12-20% higher than with cashier service, according to Aberdeen Strategy & Research, and this can even reach 30% in some business use cases. For a streamlined retrieval process, gas stations can implement a to-go pickup window where customers can pick up their items without having to enter a storefront. This integrated approach turns the gas station forecourt into a multipurpose space for customers.
For customers who do prefer in-store, installing flexible POS terminals can enable a smoother experience for all. With ongoing staffing challenges, advanced POS systems can adapt from a staff-run technology to an easy-to-use self-checkout kiosk. The technology can also support gas station managers by identifying purchasing patterns and customer preferences that help managers control inventory and assign staff effectively throughout weekly shifts. Digital POS systems are a great solution for both meeting customer demands and staffing challenges—all while improving a business’ ability to make data-driven decisions.
Increase Your Customer Base With Diverse Offerings
Many gas stations are expanding their customer offerings to bring in new business. Going beyond the traditional pit stop and broadening the gas station use case will help retailers succeed in the coming years. One example of this expanded offering benefit is clear with the prevalence of electric or hybrid vehicles. With electric vehicle sales tripling from 2020 to 2022, according to IEA, and more growth imminent, those who don’t make room for hybrid or EV charging within the forecourt may fall behind. Based on current trends, the rollout of EVs is set to reduce the need for oil by five million barrels a day by 2030.
Knowing that EV drivers can spend upwards of an hour at a charging station, according to the U.S. DOT, there is a new business opportunity for gas station owners that has never been present before. Consumers once wanted to get in and out of the store as fast as possible, but the reality of electric vehicle charging is that it takes time. So, with this added time, gas station owners need to rethink their retail experience to take advantage of downtime at the charger and the pump. Beyond fueling, gas station owners must meet their customers’ needs for an enhanced retail experience. While customers wait for their tanks to fill or batteries to charge, they should be able to take advantage of downtime for other potential needs such as traditional grocery shopping or grabbing a coffee or meal. By providing multiple energy solutions, these retailers can engage a variety of customers with new, diverse needs. This will change the sales mix configuration and provide new sources of revenue for their business.
Leverage the Power of Digital Signage Technology
While optimizing the forecourt is a strategic way of increasing revenue, there’s still opportunities to maximize in-store purchasing decisions. When used correctly, digital signage can be a powerful tool for information sharing. In fact, the automotive and CPG food markets saw up to 27% sales ROI increases by using out-of-home advertising and digital information sharing in 2023, according to Benchmarketing.
Gas station owners can highlight new products, daily deals and promote the variety of in-store products they have for purchase. When displays are integrated with inventory systems, information shared with customers can reflect current availability on a moment’s notice. Durable displays can even be placed outdoors to grab customers’ attention from the comfort of their car. These displays, often towering over major highways and public spaces, command the attention of passersby and can convey messages with extreme clarity. Outdoor displays offer vibrant visuals that ensure a wider reach and maximize any business’s exposure—all while seamlessly blending in with modern cityscapes.
Digital-First Consumers Deserve Digital-First Retail Experiences
As the consumer mindset shifts to be more cognizant of digitally native and sustainable experiences, it’s important that retailers and brands work to meet this expectation. No matter what kind of business you run, this is an achievable goal with the help of technology. From making small adjustments to payments operations to updating digital signage solutions, gas station owners can quickly get ahead of the competition by meeting their customers where they are today and in the near future. With advanced retail technology, gas station owners can create a true connected retail operation where digital signage, POS terminals, mobile devices and kiosks work in tandem to create an intelligent communications network. This will bring on greater customer engagement and in-store efficiency for managers and staff members.
James (Jay) Burdette is the senior director of the Enterprise Process Innovation Center at Panasonic Connect North America. Panasonic Connect is a B2B company offering device hardware, software and professional services for the connected enterprise.
