Between businesses and individuals, it’s easy to admit inflation in 2022 has been a challenge for everyone. The price of everything has seemingly skyrocketed, and the convenience store industry is not averse to these conditions either, as the sting of inflation extends to operators both large and small. But even though times are tough, that does not mean you simply roll over. Challenging times provide opportunities to innovate and find new methods to preserve margins without MJ the costs onto consumers. If you can determine alternatives within your supply chain and know the best ways to utilize your loyalty program, dealing with the higher costs now could provide opportunities for savings when the market returns to some normalcy. Here are a few ideas on how to combat inflation for your convenience stores.
Fuel Rollbacks
Even though consumers have seen some relief at the pump more recently, gasoline prices are still an obstacle for most Americans. As high crude oil prices still linger, convenience stores and gas stations don’t have much room to feasibly drop prices without it hurting their bottom line. That’s where a rewards program comes in. Offering a rollback on gasoline, however small it may be, provides cost savings opportunities for your customers. And with a program like ours at Simpliconnect, we can set up discounts in any number of ways. Whether you want a rollback on a certain day of the week, a surprise flash sale, or even cents off on every fill up! Customers are sure to appreciate the effort on your part to provide a reprieve from the high prices and will be more likely to choose your store over other alternatives.
Collaborate With Suppliers
Another pain point of the current inflation crisis is the supply-chain. In this scenario, you’d assume operators don’t have much of a say of pricing changes and must accept the rise in price. However, these higher costs from CPG products can be mitigated to a degree with a few different tactics. To start off with, work with your current suppliers on finding different ways to cut costs. Between negotiating the price down or identifying a point of leverage such as changing your order pattern to a more efficient one can help both sides and provides a sensible reason for the supplier to drop costs. If that doesn’t yield results, consider substituting local items or create a private label of your own, as having a private label provides an opportunity to drive loyalty. Another option worth reaching out to your supplier for is to see if they do funded offers. A lot of times, suppliers will pay or compensate convenience stores to offer new products within their loyalty programs. In this case, it’s a win-win with the supplier getting to push their new products while you, the convenience store provide fresh offerings within your loyalty program all while receiving monetary bonuses.
Promotions
With costs as high as they are right now, consumers appreciate deals wherever they can find them. And by featuring a loyalty rewards program, you can create promotions on items that matter the most to your shoppers. But simply offering generic promotions across the board is not enough. If you’re looking to alleviate the pain from inflation, then you should be focusing on the right group of shoppers: your most valuable buyers. With Simpliconnect, operators can utilize real-time analytics and cross-channel communications to craft personalized deals and offers to this loyal subset. And as you determine which deals yield the best returns for your bottom line, you can use the data to manage your orders more efficiently to save on costs.
Inflation issues are not easy to deal with, but if you apply any of these tips, the pressures created by it can be greatly alleviated. If you’re currently looking on how to deal with inflation and are looking to increase your customer engagement, reach out to us at Simpliconnect. Our loyalty rewards program for convenience stores allows you to create a program that suits you and your customers. And with the ability to offer fuel rollbacks, rewards, and unlimited communications, your members will be sure to take advantage of the savings during these tough times. Contact us to see how the customer engagement experts at Simpliconnect can get you started!
