News

Fill 'er up and add a six-inch

September 2, 2004

Retailers have found that customers are willing to help themselves when the benefits include less hassle, shorter lines, and faster service. It's one of the reasons C-store operators are looking at ways to generate additional at-the-pump revenue, made while the customer waits.

"People typically pay outside and they're gone," said Peter Kaszycki, president of Pro-Tech, a kiosk manufacturer based near Atlanta.

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Many operators consider pump-side kiosks an ideal way to drive business back into the store. The at-the-pump kiosks can advertise sale items, food and specials.

But many operators can find it difficult to calculate the return on investment of advertising-based units. How can they tell if a customer bought a bag of chips just because he or she saw an ad on a kiosk? That's why operators are looking for a pump-side application that's more measurable.

One measurable initiative is the deployment of self-ordering kiosks that entice patrons to order food and drinks by means of a pole-mounted kiosk.

"If you have customers placing sandwich orders at the pump, then you can tell absolutely that each day you received 30 sandwich orders from the kiosk at the pump. That is something that can be measured," Kaszycki said.

Kaszycki predicts healthy profit margins for C-stores that install self-ordering kiosks. "We would reasonably expect the overall sales to increase by 15-20 percent, since more people will be attracted inside and will purchase more than just gas.

"The self-ordering kiosk is a perfect way to bring in the customer that normally fills up and drives away," he said. "Now they can save time by pre-ordering food, paying for it at the pump and avoiding the lines inside."

Creating new revenue at the pump is a difficult proposition, according to Zytronic's marketing and sales director Mark Cambridge. He believes C-stores could possibly generate revenue by selling advertising that's displayed during the customer's pump-side time.

Cambridge, however, believes that C-stores could possibly generate revenue by selling advertising that's displayed during the customer's pump-side time. Sponsored ads are looped along with information on in-store specials, for example.

"Using the customer's downtime to generate payable point-of-information revenue is the only way I see to get additional pump-side revenue without bringing the customer back into the store," said Cambridge.

Kaszycki understands that purchases at the pump tend to be spur-of-the-moment decisions, and he constantly looks for ways to monetize the downtime patrons have while they fill their tanks.

For example, fast food restaurants are located in many C-stores, so why not put the menu at the pump?

"Many times I have seen a Subway in a gas station, but I didn't want to take my time to fill up my car then walk in there and stand in line again to order my sandwich," Kaszycki said. "If I can do both at the same time - voila!"