B2C Card Propositions in European Forecourt Retailing

Published by: Datamonitor

Published: Jul. 2, 2008 - 15 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

SOURCE

ANALYSIS

Fuel retailers do not have to offer regular fuel rebates as part of their loyalty programs

The larger fuel retailers have generally chosen not to offer rebates on fuel

There are a number of reasons behind fuel retailers' decisions to offer rebates on fuel

Multi-retailer loyalty schemes with a large number of partners increase the utility of fuel retailer-affiliated cards

There is much potential for companies that run syndicated loyalty schemes to launch additional programs

Given the shortage of schemes, only large fuel retailers have been able to join a coalition loyalty program

Fuel retailers entering into an independent scheme should seek to create motorist-focused groupings

Fuel retailers in independent schemes have not taken advantage of the potential partnerships with insurance companies and hotels

Loyalty schemes can be used by fuel retailers to increase awareness and sales of their non-fuel products and encourage the purchase of premium fuels

Fuel retailers differ significantly in how they enable the redemption of points on non-fuel items

Loyalty schemes should be used to up-sell to existing customers

Fuel retailers of all sizes can use loyalty schemes to improve their brand image

In certain markets, fuel retailers should use co-branded credit cards to raise revenues and increase loyalty

Fuel retailers should seek to exploit consumers' growing use of credit cards

Despite the higher revenues that can be generated from co-branded credit cards, fuel retailers have yet to exploit this area fully

Fuel retailers wishing to launch a co-branded credit card should seek to partner with the most popular issuers

It is important for fuel retailers introducing a co-branded credit card to enter into one of the popular acceptance schemes

Fuel retailers' primary focus should be on developing credit card offerings in the UK and Ireland

APPENDIX

Definitions

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Figures

Figure 1: Jet offers customers in Germany a 5% worldwide rebate on fuel

Figure 2: Only four European fuel retailers belong to a syndicated loyalty scheme

Figure 3: Of those fuel retailers participating in independent loyalty schemes, only Tesco in the UK has a car insurance company and a hotel chain as members

Figure 4: Redemption on non-fuel items is focused on service station shop products and catalogue gifts

Figure 5: In a consumer survey, over 85% of Italian respondents believe that their trust is increased by companies participating in 'socially responsible activities'

Figure 6: By 2011, Finland, Norway and Turkey will have the highest number of credit card transactions per adult

Figure 7: There are no co-branded credit cards in Italy and Switzerland

Figure 8: In most European markets there are generally two or three major credit card issuers

Figure 9: EuroCard/MasterCard and Visa are by far the largest acceptance schemes in Europe

Abstract

• 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.

• 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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