Overview
Introduction
Fuel retailers continue to offer a range of cards for their private customers.
As they have had to respond to card markets at different stages of maturity,
propositions are very fragmented ranging from schemes that provide rebates, to
multi-retailer loyalty programmes and co-branded credit cards. This brief
examines the different types of customer cards available.
Scope
- Profiles of fuel retailer customer cards across 9 European markets,
including data on fuel discounts and third party relationships.
- An overview of the levels of fuel discount offered and a discussion of how
the necessity to offer fuel discounts varies between markets.
- Insight into how fuel retailer-affiliated card propositions with a large
number of partners can increase the usefulness of the cards to customers.
- Examples of how fuel retailers have used cards to encourage customers to
make higher value purchases.
Highlights
Most fuel retailer card propositions do not offer rebates on fuel; fuel
retailers are more likely to allow points to be redeemed against shop
products. However, some supermarkets and fuel retailers with smaller networks
have been motivated to offer discounts on fuel. These range from less than 1%
to 5%.
Fuel retailers should use their cards to encourage existing customers to make
purchases that they otherwise would not have. Shell in the UK has been
particularly innovative in this respect. It offers selected card holders
double points on purchases of its premium fuel.
In markets that have a high usage of credit, it is advisable for fuel
retailers to launch a co-branded credit card. One of the main benefits of a
co-branded credit card is that the fuel retailer retains a proportion of the
card revenues generated which in turn can be used to fund higher discounts on
fuel.
Reasons to Purchase
- Gauge which features you should include in your card programme and how
these should be tailored to different markets.
- Gain a view on how customer cards can be used to increase awareness and
sales of non-fuel products, and encourage the purchase of premium fuels.
- Maximise the utility of your customer card for motorists by entering into
the most appropriate multi-retailer scheme.
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