Over the last year, convenience store sales have experienced a 1.8% increase. However, with low-profit margins at the pump, it's essential to focus on increasing pump-to-store conversion rates to drive higher-value transactions per customer. One way to achieve this is by strategizing ways to utilize spare capacity on site, which can attract new customers while offering profitable promotions both at the pump and in your convenience store.
The utilization of fuel capacity refers to the measurement of pumped gallons during a particular timeframe compared to the gallons that could have been pumped if the pumps were continuously in operation.
Utilizing available capacity allows retailers to boost sales without increasing operational costs, resulting in a direct increase in profits. Additionally, by utilizing spare capacity and attracting purchases from new or infrequent customers, fuel retailers can also increase the chances of these customers utilizing other on-site assets such as the c-store, auto repair center, or car wash.
Learn more about how measuring and optimizing capacity utilization can help fuel retailers increase profits and improve their overall on-site performance: Why Measuring Capacity Utilization is Essential for Fuel Retailers
By providing customized fuel promotions that attract new and occasional customers to fuel retailers' sites, retailers can utilize their spare capacity and encourage customers to move beyond the pump and into the convenience store.
To increase fuel retailers' profits, it is essential to maximize capacity utilization by:
Personalization is critical to filling excess capacity without cannibalizing sales, as regular customers continue to pay full price while new and occasional customers receive personalized promotions. As a result, fuel retailers can achieve incremental sales that directly contribute to their bottom line. By targeting new, infrequent, or occasional consumers and encouraging them to incorporate a fuel-and-shop routine, retailers can increase customer loyalty and encourage in-store purchases every time they fill up.
Upside helps you maximize capacity utilization by doing three key things:
By utilizing Upside's platform, retailers can drive capacity utilization, increase profitability, and boost inside sales. To learn more about how Upside can help fuel retailers achieve these goals, reach out to our team through the form below.
Upside polled thousands of retailers to understand the biggest challenges they currently face, and a common theme emerged.
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