CHICAGO—Convenience stores like FavTrip are partnering with Vroom Delivery to launch proprietary online subscription services to reward loyal customers with discounts on food and fuel and perks like free delivery.
Under Kansas City, Missouri-based FavTrip’s new partnership with Vroom, for $9.99 per month or $89.99 per year, FavTrip customers will get free delivery, discounted donuts, early access to new products and discounted fuel.
"We like offering new and exciting ways for us customers to save during these uncertain economic times. Having a subscription model will help us enhance our services and promote loyalty among customers," said Babir Sultan, president of FavTrip.
Vroom’s new subscription feature allows stores to customize how subscription plans are structured and how much they want to charge customers on a monthly or annual basis for access to unique promotional offerings.
In addition to offering free or discounted delivery, retailers can configure Vroom’s subscription services to include different mix-and-match or combo offers, and they can even offer different deals at different sets of stores. Unlike third-party marketplace subscriptions, the subscription fees go straight to the retailers and not to Vroom.
“I’m excited to see how customers respond to the new store subscription feature,” said Lead Vroom Developer Julian Silerio. “I think it provides a flexible path for retailers to reward frequent flyers to their stores, and I’m looking forward to seeing how folks play around with it and tailor the subscriptions to their customers’ unique needs.”
According to Leroy Kelsey, NACS research director, convenience retailers are testing subscription models to skirt shopper resistance to premiums. Subscriptions make upselling, cross-selling and basket-building easier. They also reduce the cost to acquire customers and streamlines sales forecasting, plus they build loyalty and make revenue predictable.
“Prior to the pandemic c-store shopper e-commerce membership was 32% and growing by about 5% each year,” said Kelsey at the 2022 NACS State of the Industry Summit. “The lockdown and busy lifestyles have doubled that type of engagement.”
NACS Magazine dove into loyalty programs and how they can provide convenience retailers with critical consumer insights and a competitive edge in “Just Rewards.”