Dive Brief:
- Alimentation Couche-Tard has seen 1.2 million enrollments in its new membership program just three weeks after debuting the platform in Florida, President and CEO Brian Hannasch, said during the convenience retailer’s fourth-quarter earnings call on Wednesday.
- The program, Inner Circle, gives members discounts on fuel and merchandise. It upgrades to a premium membership, which includes more exclusive deals as well as early notice of new products once the customer spends $500 at Circle K stores.
- While Couche-Tard’s initial launch included 429 sites in Florida, the retailer now plans to roll out the program to about 2,500 Southeastern stores before the end of 2023, Hannasch said.
Dive Insight:
If the launch throughout the Southeast goes well, Couche-Tard is prepared to tack on another 2,000 stores this year, meaning its Inner Circle program could hit 4,500 U.S. locations by the end of 2023, Hannasch said.
That expansion depends on how technically sound the platform proves to be, he said. Hannasch noted that launching Inner Circle has turned out to be more difficult than Couche-Tard had initially anticipated due to a “highly complex technical roadmap.”
Couche-Tard highlighted the tier-based platform’s ease of use, clear value proposition, personalized elements and targeted offers — all of which will help the retailer become “more in touch” with its customers, Hannasch said.
“We’re on a path to have a tool that we think is pretty unique in the industry and can drive loyalty to help us gather new customers and increase frequency of visits,” he said.
With loyalty participation continuing to plague c-store operators, retailers are investing more into their programs. Besides Couche-Tard, Casey’s, Parker’s and GPM Investments have also undergone loyalty program shifts over the past few months. Experts have said that quality c-store loyalty programs can give customers a sense of familiarity, which can reinforce their relationship to the brand they’re shopping with.
Laval, Quebec-based Couche-Tard operates more than 5,700 c-stores in the U.S. It is the second-largest c-store company in North America behind 7-Eleven.