BOSTON, April 23, 2019 /PRNewswire-PRWeb/ -- While consumers are passionate about their favorite coffee brand, they have no preference for the brand of gas that's pumped into their vehicle. GasBuddy, the only smartphone app connecting drivers to their Perfect Pit Stop, finds that gas station loyalty has declined in the past three years, with 5% fewer customers citing brand loyalty as a reason to choose a gas station. In fact, data from GasBuddy's Pay with GasBuddy program shows that more than 80% of consumers who fill up four times per month or more do so at multiple fuel and convenience brands in any given month.
In an effort to understand consumers' brand loyalty and purchasing habits at the pumps, six months of point-of-purchase data was examined from the Pay with GasBuddy program, the first-of-its-kind fuel savings program that gives drivers a discount on virtually every gallon of gas they will ever pump with more than 500,000 members and $220M in total purchase volume.
The data reveals that nearly 50% of drivers fill up four or more times per month. Among those drivers, 81% went to multiple brands, while only 19% went exclusively to one brand. Not much changes for drivers with fewer fill-ups: out of those who fill up three times per month, 77% went to multiple brands, while 23% went exclusively to one brand.
"Unlike grocery and apparel retailers, the fuel and convenience industry is servicing a truly brand-agnostic consumer," said Sarah McCrary, CEO at GasBuddy. "With on-the-go drivers sensitive to the price of fuel, the station location and the quality of the amenities, the key to seeing returning customers is delighting them with offers that are timely and relevant to their particular trip."
Targeted fuel discounts issued through the Pay with GasBuddy program have helped fuel and convenience brands capture incremental market share and drive new business, further proof of the lack of brand loyalty. Showing an additional 5c per gallon incentive to net-new or disengaged customers has allowed fuel retailers to capture as much as 1 out of 4 of that segment's fuel purchases. Fuel retailers have seen that same incentive double their market share even amongst their frequent customers, from 1 in 3 transactions made at their brand prior to a campaign, to 2 out of 3 during the promotional period.
Examining Pay with GasBuddy point-of-purchase data by region in the United States, the Midwest has the highest concentration of brand-agnostic drivers, with 82% going to multiple brands in any given month. The region with the most loyal customers is the Northeast, with 24% of drivers who fill up 4 or more times per month visiting the same brand for all fill-ups. The rankings by region suggest that brands on the more congested coasts see less competition for loyal customers than the open areas of the south and Midwest.
GasBuddy Pump Habits Survey, issued in February of 2016, 2018 and 2019.
Methodology
The GasBuddy study examined 500,000 Pay with GasBuddy members point-of-purchase data between Oct 2018 - March 2019. GasBuddy defines loyalty as making all stops per month at the same gas station. The study found that the more often the driver filled-up, the more likely the driver is brand agnostic.
About GasBuddy
GasBuddy is a company that connects drivers with their Perfect Pit Stop. As the leading source for crowdsourced, real-time fuel prices at more than 150,000 gas station convenience stores in the U.S., Canada and Australia, millions of drivers use the GasBuddy app and website every day to find gas station convenience stores based on fuel prices, location and ratings/reviews. GasBuddy's first-of-its-kind fuel savings program, Pay with GasBuddy, has saved Americans more than $6 million at the pumps since its launch in 2017. The company's business solutions suite, GasBuddy Business Pages, provides Fuel Marketers and Retailers their best opportunity to maintain their station information, manage their brand, and promote to their target consumer audience. For more information, visit http://www.gasbuddy.com.
SOURCE GasBuddy
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