Consumers today are often on the run, in a hurry, and want instant benefits in their daily lives that are engaging and valuable.
With that in mind, RaceTrac, a popular fuel/convenience store chain in the South, launched a premium loyalty program this week called RaceTrac Rewards VIP.
RaceTrac Rewards VIP charges members $2.49 per month in exchange for significant fuel discounts whenever they purchase.
This new premium loyalty program offers a tiered approach and instant discounts at the pump that create instant gratification.
Instant Gratification is a Key to True Customer Loyalty
Consumers have seemingly limitless choices today so brands have to offer a loyalty program that combines value, engagement, and instant gratification.
The latter point around instant gratification is extremely important for retailers when you consider nearly 70% of consumers say their loyalty is more difficult to maintain than ever.
Premium loyalty programs, like RaceTrac Rewards VIP, directly address instant gratification because members pay a fee to receive instant 24/7 benefits. There is no earning of points required to receive rewards at a future date.
The power of premium loyalty programs is apparent: According to our 2020 Premium Loyalty Study, 60% of consumers say that discounts that can be applied whenever you shop is a perk that motivates them to join premium loyalty programs.
When a brand truly listens to its customers, creates a loyalty program with benefits that meet and exceed expectations, then instant gratification can be a powerful acquisition and retention tool.
Don’t make your customers wait for their loyalty program benefits.
Instant Discounts Can Lead to Instant Loyalty in the Gas Category
Our premium loyalty study shows that gas is a category in which consumers would be willing to join a premium loyalty program, 41% to be exact.
RaceTrac Rewards VIP members pay $2.49 per month and receive 10 cents per gallon on the first 40 gallons and 3 cents per gallon thereafter with each fuel purchase every month.
As a premium additional benefit, RaceTrac Rewards VIP members receive a discount at the pump, in addition to various coupons and promotions on RaceTrac products in-store.
Officials at RaceTrac are very excited about the new program, especially because of the instant benefits.
Customers can actually see the discount on the gas pump screen, which creates the instant benefit, a feeling of instant gratification, and instills an emotional connection every time they visit.
A Tiered Program Offers Consumers the Best of Both Worlds
Current RaceTrac Rewards members can upgrade their memberships to RaceTrac Rewards VIP.
This is a great asset for any loyalty program because it provides your members the flexibility to move from a free offering to a premium loyalty program.
Free programs are great for member acquisition. And a premium loyalty program that offers attractive, instant benefits can entice your free program members to upgrade.
A compelling statistic from our study shows that 67% of consumers are likely to join a premium loyalty program if they are already members of that retailer’s free program.
A tiered loyalty program combines your free members and your best customers who want elevated benefits.
Once your customers are in the free program, it’s easier to communicate to them the benefits of your premium loyalty program.
Consumers Will Find Value in RaceTrac Premium Loyalty Program
Instant gratification and a tiered loyalty program approach are smart features for a program where premium loyalty is so appealing to consumers.
And RaceTrac Rewards VIP encompasses these features.
Consumers need to see instant value in a loyalty program and that is easily seen in RaceTrac Rewards VIP. Possibly, RaceTrac officials could enhance the program in the future to include discounts in its C-stores as well?
RaceTrac’s loyalty program certainly addresses the key components of a tiered approach, instant benefits, and instant gratification members see at the pump every time they get gas.
This is an excellent program that promises instant benefits and increased customer loyalty.
Download our free 2020 Premium Loyalty Data Study to learn more about how your customers feel about paying for a loyalty program membership.