How new customer loyalty programmes fuel the c-store retail experience

Fuel retailers now realise there is enormous untapped potential to revamp their loyalty programmes to drive customer engagement and expand share of wallet. Kelly Brown explains how to elevate fuel loyalty solutions to create more relevant and personalised experiences that grow customer value and differentiate the business.

For many years, fuel retail loyalty programmes were an easy way to drive customer engagement and revenue. However, with changing consumer behaviours and formidable new competition, few meet the needs of today’s retailers or consumers.  

Most are simple “earn-and-burn” transaction or discount-based programmes that extend the same set of outdated offers to all customers, regardless of their different behaviours.   

They typically relinquish ownership of customer data and relationships to third party coalition loyalty providers that can’t differentiate retailers from their competition. And, crucially, with no access to data on their customers’ preferences, purchasing behaviour or communications, retailers can’t assess what their customers care about to provide the fast and easy personalised services they increasingly expect.  

The reality is, today customers don’t just compare your service to that of your competitors, but to the best service they’ve ever received, anytime and anywhere.   

At a time when industry regulators like the NZ Commerce Commission say that “motorists are often better off simply choosing the petrol station with the lowest board price or the site with a one-off ‘discount day, rather than counting on a complicated loyalty scheme”, you know that loyalty programmes are well overdue for an overhaul. 

Leading fuel retailers are investing in innovation, digitisation and branding to launch new loyalty solutions that deliver a complete view of customers’ preferences and purchasing behaviour, with the ability to create fast and memorable experiences.  

And they’re seeing the benefits - loyalty programmes are linked to an 18-30% increase in visits and spends at restaurants and c-stores, and loyalty members annually spend 38% more on average.  

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If you’re looking at how to develop your loyalty and personalisation capabilities, here are the steps to take to deliver an exceptional CX, and examples of fuel retailers doing it best:  

1. Take control with a standalone loyalty programme  

In contrast to the third party loyalty programmes, modern loyalty systems give you a 360-degree view of all retail and trade customers, with their entire purchasing history and preferences captured and centrally stored in one database.    

By reclaiming ownership of your customer data from all channels and touchpoints – ranging from fuel selections to coffee preferences and convenience items within stores - you can recognise customers consistently wherever they shop with you.  

Example: in the UK, Shell Go+ is a very simple mechanism: customers earn visits, instead of points. All they have to do is spend £10 or more on fuel or £2 or more in the shop. They get 10% off all hot drinks and deli by Shell food ranges, and money off fuel every 10 visits, and plenty of treats and surprises along the way.  

This programme stands out due to its simplicity. Gaining and redeeming points is simple and doesn’t involve complicated calculations. 

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2. Extend your loyalty programme to your mobile app 

Today loyalty programmes are an integral part of a smartphone app: loyalty mobile app users typically spend 10-20% more a month, and visit 20-30% more frequently each month.  

The customer essentially manages their own loyalty experience and should be able to collect points, make payments and redeem points straight through their mobile device at any time. And to really differentiate your offering, make it a simple and engaging experience by enabling both fuel and in-store transactions. 

Example: Z Energy, now part of Ampol Australia, expanded its Pumped loyalty programme back in 2019. Customers now save 6 cents per litre every day with no minimum spend at Z and participating Caltex stations, on up to 50 litres. They can choose to stack their discount when spending $40 or more to get an even bigger discount next time. And they earn Flybuys or Airpoints Dollars by scanning their Z or Caltex App, or Flybuys or Airpoints card.   

Z’s mobile app plays a key role in their loyalty programme. By delivering loyalty discounts and rewards at point-of-sale and on the app – not just via a card - they lowered the hurdle for customer adoption and made it faster and easier to use. For many users of the app, the big draw is another essential daily fuel: Coffee. The ‘jump the queue’ feature is one of Z’s most popular mobile offerings, with one in four coffees sold now pre-ordered.

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3. Apply analytics to create more relevant and personalised offers  

The next stage is to use the data-driven insights to create cluster- or even site-specific offers. Tailor your offers for local buying opportunities and use your customers’ transaction histories to customise product bundles, pricing and promotions to increase sell-through without compromising margin.  

You can then capitalise on opportunities to craft offers that feel personally relevant to each individual in your database by combining internal data (such as transactions and location) with external data (such as competition, weather, traffic conditions and demographics).  

Example: The Chevron Texaco Rewards program rewards Chevron and Texaco customers for their fuel and qualifying in-store purchases at participating stations. But Chevron has also had success offering short-term loyalty schemes. Its AFANity program, which debuted in 2016, gave members points for specific activities, such as visiting a Chevron or Texaco gas station or checking in on the Chevron or Texaco mobile app. They then redeemed the points for rewards, including tickets to football games, autographed memorabilia, officially licensed team gear and unique once-in-a-lifetime experiences with their favourite teams.  

Chevron understands that people are not emotionally attached to petrol or convenience items but are very emotional about sports. Their loyalty programme tapped into that to create a positive affinity with the brand.  

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4. Use AI-driven marketing tools to hyper-personalise the CX  

AI algorithms let you analyse customer preferences, predict many aspects of customer behaviour and develop personalised communications, experiences and offers.  

By interacting with customers at the right moment, with the right offer and in the right channel, you can drive behavioural changes in customers and multiply the lifetime value of loyalty customers. This is why gamification is the number one loyalty trend businesses plan to invest in during 2024.  

Example: Ireland’s Circle K understands the value of gamification with it Play or Park loyalty game. Members get 1 point for every litre of petrol or diesel and 4 points for every €1 spent on eligible purchases at Circle K stores. Members collect points and can play or park: each batch of 200 points qualifies for one entry which they can ‘Play’ for the prize of the month or ‘Park’ for an upcoming prize. And the prizes are big: February 2024’s ‘Experience of a Lifetime’ prize offers two friends the opportunity to drive free for a year, and March 2024’s prize awards 10,000 euro in cash.  

This is a great example of an engaging loyalty programme. It includes elements of gamification and has fantastic, tangible prizes for winners.   

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5. Ecosystem loyalty programmes are next 

Looking ahead, large retailers are learning to drive customer loyalty and growth by pooling data within an ecosystem of brands. Multiple companies are tapping into their complementary product and service offerings to develop a joint loyalty programme around a unifying customer value proposition. 

 While still in their early stages, these ecosystem approaches promise many benefits: 

• Consumers will receive heightened experiential benefits in addition to faster loyalty rewards growth, more flexible redemptions and an unmatched simplicity and daily relevance. 

• Retailers and brands will see a rise in reach and frequency of usage. They will gain access to richer, more privileged consumer data, shared infrastructure and cross-marketing opportunities.  

Example: bp’s Everyday Rewards loyalty scheme in New Zealand is simple - customers earn 1 point for every litre of fuel and $1 spent on convenience products in-store. It includes ongoing loyalty promotions, such as 6 cents per litre off the fuel price up to 50 litres. And customers benefit from savings across a range of everyday purchases from multiple partners including Woolworths, ASB and Vineonline. 

Everyday Rewards is a powerful purchase motivator. Users gain points across a variety of partners and aren’t locked into spending rewards with one brand. People will be more motivated to use bp stations if they know their loyalty will be rewarded with other experiences and offers, not just fuel discounts or free car washes. 

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As you look at how to modernise your loyalty programme, ensure you focus on the end-to-end customer experience. You have a fantastic opportunity to leap-frog your competition by taking an ecosystem-centric approach that gives your customers a ‘next-generation’ experience. 

Z Energy fuels more sales and repeat visits

Z Energy, New Zealand’s largest fuel retailer and part of Ampol Australia, developed Pumped to replace a third-party loyalty scheme and create a more seamless mobile and in-store customer experience.

Built using Infinity’s Loyalty module, Pumped uses a QR barcode on Z’s mobile app to identify the customer at point-of-sale or self-serve online payment terminals and add any relevant offers to their transaction. It also lets them consume any offers they have earned, such as free coffee, carwashes or LPG bottle swaps.

Z can now create new offers that help engage customers, offer them valuable rewards and encourage repeat visits. And Pumped is now Z’s cornerstone for innovation, with the ability to deliver the unified and personalised experiences its customers expect.

“With a single view of the customer we are right in the middle of the transaction with the customer in real-time. We know where, when and how they shop and, over time, will find new ways to interact, personalise and reward each customer’s experience.”

Andy Stewart, Head of Digital & Operations – Low Carbon Futures, Z Energy 

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This blog was originally published on 12 February 2023 and updated on 21 February 2024.

Want help to modernise your fuel loyalty programme? 

As you transform your customer experience to deliver the seamless and personalised buying journeys your customers crave, your retail systems must transform as well. If you’re looking for help to develop your loyalty and personalisation capabilities, get in touch. We’d love to help you develop more meaningful relationships that deliver profitable growth.  

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For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook:

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Four ways to revamp the fuel customer experience

This post was originally published on 12 May 2021 and updated on 22 February 2023

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As consumer demand for convenience, speed, variety and affordability rises, the convenience store format needs to transform. Kelly Brown describes four areas to focus on to modernise the c-store CX.

With demand for traditional fuel expected to plateau around 2030, fuel retailers are urgently innovating to replace shrinking revenues and dwindling profits.

The leaders have quickly moved to improve and expand their traditional products and services and launch in new, but related, market segments. They recognise that the future business of fuel will be less vehicle-centric and more focussed on the customer. They’ve developed a customer-centric mindset and are building new skills and capabilities to compete with unfamiliar competitors.

We’ve seen some impressive transformations. The retailers making the first move are creating differentiated experiences for competitive advantage and forming strong customer relationships that are driving up conversions and profits.

It’s an immense undertaking. 

While fuel retail has always been challenging – very fast service is non-negotiable, transaction volumes are high and operations typically run 24x7 – this requires a fundamental transformation of the standard business model.

And customer expectations have never been higher. Today’s consumers expect brands to deliver fast and frictionless experiences through compelling interactions across all physical and digital touchpoints.

Building customer loyalty requires a complex mix of emotional and rational factors that enable you to connect and build relationships with customers across all your channels and communications.

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So where should you focus? 

Here are four areas to explore:

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1. Enhance the purchasing experience

Create a seamless experience across the end-to-end ordering and purchase journey, with personalised offers and incentives to encourage store visits, and fast point of sale transactions on the forecourt and in stores.

• A mobile app will let your customers pay for fuel without leaving their vehicles. Don’t restrict it to payments - use the app to help customers find their nearest service station, view their purchase history, accumulated loyalty points, discounts and rewards, or pre-order coffee, convenience items or a carwash.

• Some retailers are making payments fully contactless with license plate recognition systems where customers essentially pay for fuel with their number plate. Our client Z Energy’s Pay by Plate helped grow its active customer base by more than 80% in a year.

• By identifying customer pain-points and aggressively embracing innovation, Z Energy has delivered a world-first in fuel retail with the launch of its virtual fuel tank called Sharetank.  

2. Create a Convenience Hub

The convenience store format is ready for change. Consumers are cutting back on big weekly supermarket shopping trips and choosing to purchase more of their groceries at easily accessible local stores. 

• Become a neighbourhood hub by expanding beyond traditional c-store offerings into high-quality products and fresh food, and design places customers want to visit, rather than need to visit.   

• In highway locations, encourage customers to stay as long as they want, with fresh in-store and takeaway food, and rest areas for travellers. 

• Consider the un-manned store model, which reduces costs while offering customers a quick, digital experience.  

3. Offer ordering and pickup

With the surge in ecommerce over recent years, consumers want new options for purchasing, payment and fulfilment.  

• Boost sales and profits by letting customers place and pay for their order in advance using your mobile app. When they reach the store, all they need to do is pick up the order and go. Some fuel apps let customers order items while they fill up, and an attendant delivers them to their vehicles.   

• New self-serve software offers a simple yet sophisticated solution to meet customer demands for speed and convenience via digital experiences.  

• Draw online shoppers into stores by offering omnichannel services such as click-and-collect.  

• Home delivery apps let your stores drive sales and engage with new customers, while continuing to encourage their local communities to shop in store.   

4. React smarter and faster to demand changes

Make better decisions about product assortments, by matching breadth and depth to demand, trends and local demographics.  

•  A unified view of inventory will give you total control over your wet and dry stock to improve efficiency, reduce overall stock, create more satisfied customers and boost the bottom line. 

• Maximise profits, conversions and promotional impact by customising products, prices and promotions nationally, regionally and even by individual sites.   

• Offer a range of discounts to appeal to different shoppers, including dollars off the price, cost per litre, percentage off the price, cost plus a specific margin or markup and more.  

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Want help to revamp your c-store customer experience? 

As you transform your CX to deliver the seamless and personalised buying journeys your customers crave, your point of sale and retail systems must transform as well. If you’re experiencing technology challenges that prevent you from unifying your physical and digital experiences, get in touch. We’d love to help you develop the agility to innovate and scale new services, faster

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For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook:  

Three ways to revamp the fuel customer experience

With demand for traditional fuel expected to plateau around 2030, fuel retailers are urgently innovating to replace shrinking revenues and dwindling profits.

The leaders have quickly moved to improve and expand their traditional products and services and launch in new, but related, market segments. They recognise that the future business of fuel will be less vehicle-centric and more focussed on the customer. They’ve developed a customer-centric mindset and are building new skills and capabilities to compete with unfamiliar competitors.

We’ve seen some impressive transformations. The retailers making the first move are creating differentiated experiences for competitive advantage and forming strong customer relationships that are driving up conversions and profits.

It’s an immense undertaking. 

While fuel retail has always been challenging – very fast service is non-negotiable, transaction volumes are high and operations typically run 24x7 – this requires a fundamental transformation of the standard business model.

And customer expectations have never been higher. Today’s consumers expect brands to deliver fast and frictionless experiences through compelling interactions across all physical and digital touchpoints. Building customer loyalty requires a complex mix of emotional and rational factors that enable you to connect and build relationships with customers across all your channels and communications.

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So where should you focus? 

Here are the three actions you can take now:

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1. Enhance the purchasing experience

Create a seamless experience across the end-to-end ordering and purchase journey, with personalised offers and incentives to encourage store visits, and fast point of sale transactions on the forecourt and in stores.

• A mobile app will let your customers pay for fuel without leaving their vehicles. Don’t restrict it to payments - use the app to help customers find their nearest service station, view their purchase history, accumulated loyalty points, discounts and rewards, pre-order coffee, convenience items or a carwash.

• Some retailers are making payments fully contactless with license plate recognition systems where customers essentially pay for fuel with their number plate.  

• By identifying customer pain-points and aggressively embracing innovation, our client Z Energy has delivered a world-first in fuel retail with the launch of its virtual fuel tank - Sharetank. 

2. Transform the convenience store

The convenience store format is ready for change. Consumers are cutting back on big weekly supermarket shopping trips and choosing to purchase more of their groceries at easily accessible local stores.

• Become a neighbourhood hub by expanding beyond traditional c-store offerings into high-quality products and fresh food, and design places customers want to visit, rather than need to visit.  

• Increase sales and create new profit streams by giving your customers a variety  of delivery models, such as click-and-collect and home delivery.

• In highway locations, encourage customers to stay as long as they want, with in-store and takeaway food, and rest areas for travellers.

• Consider the un-manned store model, which reduces costs while offering customers a quick, digital experience. 

3. Personalise customer offers and experiences

Historically, fuel loyalty programmes were ‘earn and burn’ type rewards that provided discounts for future spend and effectively gave away customer data and relationships to third party loyalty and payments providers or consumer brands. 

• You have a fantastic opportunity to reclaim ownership of your customer data from a variety of channels and touchpoints – ranging from fuel selections to coffee preferences and grocery purchases within stores. 

• Analyse these customer preferences and develop personalised communications, experiences and offers that go beyond the novel to become meaningful.

• Use AI tools to include personalised recommendations in e-receipts and during click-and-collect pick-ups. 

By anticipating your customers’ needs and showing that you know and understand them, you’ll drive up conversions, increase revenues and boost loyalty.

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If you need help to create exceptional customer experiences, get in touch. We can help you seamlessly integrate physical and digital channels and create your unified customer journey.

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Becoming customer-centric: The new mindset of fuel retail innovators

The fuel retail market faces a number of disruptive threats that are spurring massive change and a relentless focus on customer experience.

Kelly Brown explains why fuel retailers are shifting their focus from the vehicle to the customer, and how to remain relevant.

Three forces of disruption are changing the game for the fuel retail business: the rise of alternative fuels, emerging mobility models and sky-rocketing consumer demands for digital and personalised services. 

While global demand for fuel will continue to increase over the next decade, this growth is not sustainable. The traditional fuel industry is on borrowed time: energy demand is expected to plateau around 2030 as the world shifts to renewables, and traditional sources of revenue will eventually evaporate and profitability dwindle.

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How are fuel retailers innovating to survive?

The most innovative fuel retailers recognise that to unlock new business models and revenue streams they need to shift their focus from the vehicle to the customer.

Historically, fuel retailers have been focused on fuelling and servicing vehicles. While they also sell snacks and convenience goods to consumers in stores, the business is still centred on the vehicle, not the driver or walk-in customer.

In addition, fuel retailers have relied on convenient physical locations - “build and they will come” - rather than on inspiring their customers to visit them.  Some have effectively given their customers (in the form of data and opportunities for relationships) to third party loyalty and payments providers, and to the brands they sell, like Coke.

The future business of fuel will be less vehicle-centric, and more focussed on the customer. 

Today’s consumers expect brands to deliver fast and frictionless experiences through compelling interactions across all physical and digital touchpoints.

For fuel retailers, that means re-imagining the customer experience to become the place that people want, rather than need, to go to. It’s about becoming a neighbourhood hub, with more of what customers want. And it’s about extending your relationships outside the service station with digital channels and partnerships. 

The fuel retailers that fail to recognise and seize this opportunity, will be the businesses left behind.

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What steps can you take to revamp your customer experience? 

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Here’s a two-pronged strategy that will help offset the future decline in traditional income streams

1. Lock in your customers now 

Focus on the end-to-end needs of your customers and revamp the customer journey to expand your relationship beyond quick visits to service stations.

That means enabling fast, digital, contact-free purchases, transforming your convenience stores with new products and services, and personalising your customer communications, offers and experiences. To do that you’ll need to create true omnichannel experiences that seamlessly integrate physical and digital channels to create an array of engaging customer experiences using your own brand, in conjunction with the third parties' customers value.

Case study: Our client Z Energy replaced a third party loyalty scheme with its own loyalty strategy and programme. Pumped is now Z’s cornerstone for innovation, with the ability to deliver the unified and personalised experiences its customers expect.

2. Embrace complexity to build new capabilities

To revamp your business and aggressively embrace innovation and new technologies, you’ll need to develop new expertise and capabilities. That will introduce more complexity into your organisation, with sales channels becoming less physical and more digital. 

You’ll need to embrace agile working to innovate and get products to market faster. You’ll want a retail platform that connects your physical and digital channels to let you deliver customer experiences that go beyond the novel to become meaningful. And by using APIs, you can create an ecosystem of partnerships to deploy new apps, services, channels and devices. 

Case study: Z Energy is transforming its business to pursue growth opportunities and deliver award-winning customer experiences, including a world-first innovation – a virtual fuel tank called Sharetank.

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If you’d like help to create immersive, seamless and personalised customer experiences across all physical and digital channels, get in touch. We’d love to help you develop a unified customer journey.

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Video: Z drives customer loyalty with Infinity

Z Energy’s digital-first approach is unifying the customer experience across every touchpoint.

Watch Z’s Chief Digital Officer, Mandy Simpson, and Head of Site Systems, Andy Stewart, describe how its Pumped loyalty programme delivers the personalised experiences its customers expect. With Infinity providing a real-time view of customers, Z can understand and predict what customers want and develop the experiences they need. 

Mandy explains that Pumped helps Z develop personalised relationships and enhance the customer journey. 

“Customers want quite different things from Z depending on where they are, both in their day and also in their life. Because we can identify those customers and get to know their habits better, it allows us to predict what they're going to want and better help them to achieve their goals.”

Andy explains why Z chose Infinity for its loyalty platform. 

“We knew that Infinity had a loyalty module, we proved very early on that it was the right technology for us and was going to fit very nicely into our point-of-sale landscape. It was a no-brainer for us to make the decision to include that as part of our overall platform.” 

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For more on how Z Energy is using Infinity Loyalty to create seamless and engaging experiences that are fuelling sales and repeat visits, read our case study.

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If you’d like to get a real-time view of customers for more personalised experiences, contact us. We’d love to help you develop a unified customer journey.

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Video: Z creates world-first customer experiences with Infinity

With Infinity providing a single customer view, Z is elevating expectations of the fuel retail experience.

Z Energy is New Zealand’s largest fuel retailer with more than 500 Z and Caltex sites. 

With Infinity, Z is pursuing growth opportunities and delivering award-winning customer experiences, including a world-first innovation – Sharetank, a virtual fuel tank.

Z’s Chief Digital Officer, Mandy Simpson, and Head of Site Systems, Andy Stewart, share how the fuel retailer is digitising its business to deliver the unified experiences its customers expect and how Infinity and Triquestra has helped.

Mandy explains that Z is transforming for a digital future where they can predict what customers are going to want and then deliver the experiences they need, saying: “That is the heart of the digitisation goal, which is producing really amazing experiences for our customers, for our employees, and for everybody who works with us.”

Andy describes how Z’s use of Infinity has evolved from point of sale through to enabling a truly unified experience.

“We're now able to get complete visibility of our customers by virtue of the fact that every transaction that a customer does at a Z site comes through one of the Infinity products, whether that's point of sale or whether that's via our app channel. 

“We're able to use that data now,” adds Andy. “We know when our customers are shopping with us, we know when they're not shopping with us, and we're able to harness that data to enhance our loyalty experience for those people.”

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If you’d like help to develop your unified customer journey, get in touch. We’d love to explore how Infinity can help you give customers more personalised and frictionless experiences across all channels.

Turning retail experience ideas into reality: meet our new Consulting Lead

Neshma Emile has recently been promoted to Consulting Lead. She’ll be helping more Triquestra clients use the Infinity platform to transform customer experiences. 

Before joining Triquestra, Neshma had ERP implementation roles at construction and building products companies. As a Business Analyst, it was her job to help her clients convert ideas into tangible realities. As Consulting Lead, she’ll be supporting the consulting team to do the same.

“As BA, I was responsible for gathering requirements from the customer and turning them into testable, then usable product. Making sure we’re on the same page and delivering in scope and on time. Now, as Consulting Lead, I also help other business analysts do what they do best. Offering a helping hand so they can become better advisors and get the best results for our customers,” says Neshma. 

“The way Infinity can help retailers digitise and innovate today is really great. How we deliver order management, click-and-collect, how we've integrated with Slyp receipts – we're doing everything to keep our clients in tune with what's modern in the market. It’s our goal to give our clients new ways of connecting to their customers through our product and experience,” she says. 

Because Neshma comes from an ERP background, she understands software and process integration and thinks Infinity is an outstanding retail platform. “With Infinity, because it's designed to meet the specific requirements of retail end users, we always hit the nail on the head. Infinity always gives customers what they need because it's such a mature and stable unified commerce platform. People can innovate off of it really quickly and know that it won't break other systems or processes.”

In regards to innovation, she gives examples like Cue Clothing’s click-and-collect and Z Energy’s Pumped and Sharetank. “For Sharetank, we had Infinity working as it needed to for fuel POS. Then we enhanced the platform and the APIs which are used by the Z app to let consumers find the lowest priced fuel in a 30k radius, prepay for that fuel and then share it with others. And for the Pumped loyalty programme, we proved how stable Infinity is to manage 250 sales transactions per minute.” 

Neshma thinks Triquestra is a good company because of the digital transformations she works on and the company’s culture. She explains, “We’re great at prioritising and we're great at communicating with customers. Our solution and business architects will go in and partner with the client to make sure that the solution is well thought out. 

“We work in a high pressure environment and you'd think you'd have people really anxious and angry but we're not! We're really happy. Even if someone’s role isn’t customer facing, everyone is always looking out for our clients’ best interest and doing what they can to make sure those clients are happy. 

“You’re also really given the opportunity to learn, grow and push yourself every day. I’m young and I don’t have to compensate for that. They hired me because of my skills and work ethic and that’s what they reward me for.” 

Neshma and everyone at Triquestra is very conscious of what retail means today. “While online shopping has definitely changed the landscape, people haven’t stopped going to the shops. It’s the experience the shopper has, whether they’re online or instore, that makes one retailer more successful than another these days.”

Scott Bishop on building a customer-focused innovation culture at Z Energy

This story was originally published on 21 January 2020 and updated in May 2021

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One of the biggest challenges retailers face is a lack of an innovation culture. They know they need to keep pace with new technologies and changing consumer demands, but are unsure about how to embed innovation and make it an ongoing process.

Back in early 2020, I spoke with Scott Bishop, then the Chief Innovation Officer at our fuel retailer client, Z Energy, for his insights on how to explore, identify and build inspiring customer experiences. At that time, Scott led Z’s Innovation Refinery which has produced many new experiences for customers, including two world firsts in only two years – Fastlane and Sharetank.

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You have an impressive background leading innovation efforts at Amazon, Air New Zealand and now Z Energy. What is the Innovation Refinery and why was it set up?   

SB: The Innovation Refinery team is our catalyst for innovation at Z Energy. We’re a small team of designers, researchers, creatives and builders tasked with identifying customer pain points from across the business, building solutions and iterating with our customers.   

The Refinery is also our creativity space. It’s a physical area in our Auckland office accessible to everyone at Z and has five distinct zones that provide the space necessary to inspire, create and involve customers in our ongoing customer experience experiments.

We set it up because we're at a crossroads within our industry and believe demand will slowly fall over the next 20 years. This fall in consumption is driven by a number of trends, including New Zealand's commitment to a carbon-free future and new choices being made by consumers, such as the move to fuel-efficient cars and electric vehicles.

We don't want to wait for that to happen. Our goal is to be a long-term, sustainable Kiwi company. So participating in a declining market doesn't fit that definition of long-term and sustainable.

We also realise that we're no smarter than anyone else and it will take us a while to figure out how we can get out of transport fuels. And so we're going to start now and experiment our way to the future.

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What are your goals for the Refinery and how does it support Z’s transformation?

SB: We have two main roles at Z: coach and build.

We spend around 50% of our time coaching and mentoring across the company because we believe innovation isn’t just done by one team, it should be done by everyone. We help to accelerate new products and services, as well as process and productivity enhancements by showing and encouraging people towards new ways of working. 

The other half of our time is spent building next generation products and services. They can be internal, external and even small things, like innovating a process or even a spreadsheet. It also includes supporting our key investments including electric company Flick and transport company Mevo. 

These new products and services also help us demonstrate this new way of working. Having artefacts, stories and actual products and services we can point to helps reinforce the ongoing coaching and mentoring we do.

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Why is a dedicated physical space for innovation so important?

SB: Creativity requires space. And creativity also requires movement. 

If you think about a traditional corporate environment, every time you finish a session you have to clear the meeting room and all that momentum and all those ideas are lost. It just kills the process.

And it’s scientifically proven that your brain changes with movement and you unlock more creativity. 

So we have a dedicated area designed with space for movement and space for people to keep artefacts up and return to over the weeks or months they work on a concept or idea.

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What are some examples of innovation projects you’ve led?

SB: We take a portfolio approach to our investigations. We've got five different time horizons, or categories, that our innovation projects fall into: Fix, accelerate, incubate, investigate and challenge.

Two of the most recent acceleration projects we’ve launched are Fastlane and Sharetank – both we believe to be world firsts in our industry. 

Fastlane lets our customers buy petrol using their number plate. They never need to touch their phone, wallet or credit card. Our computer vision technology uses our existing on-site cameras combined with payment technology to allow customers to simply arrive, fill up and leave as quickly as possible.

We launched Fastlane in 2017 with nine trial sites, and now we've got 42 across Auckland and are expanding to other major metros across Aotearoa. We’re also experimenting at four sites with pay-by-plate across all lanes to determine the best customer experience.

Sharetank, a virtual fuel tank for New Zealanders to pre-purchase fuel, is another first. Launched last October with our partners Triquestra, Rush Digital and Invenco, customers can now prepay for fuel when the price is right for them. This fuel is stored in their virtual tank that they can access any time they like and even share with up to five friends and family.

We believe it is a competitive differentiator and there is intellectual property in this so we have applied for patent protection in New Zealand and the US. If the patents are granted, then we’re able to license the patent to other companies and generate incremental revenue for Z.

Both projects aren’t ‘done’. They’re in market and we’re getting customer feedback to help us keep enhancing them.

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You mentioned that Z is looking for new markets beyond fossil fuels. What are some of your projects in this space?

SB: Our future market projects are all in the ‘investigate’ and ‘challenge’ portfolio categories and focus on three areas: Future fuels, mobility and last mile services.

Future fuels include bio-diesel, electricity and hydrogen. Mobility is about the electrification of existing and new transport options. And last mile is all about how we use our proximity to customers as an asset. With our nationwide network of over 350 Z and Caltex sites, 82% of New Zealand’s population lives within five kilometres of one of our locations.

Last mile is about leveraging the proximity to our customers. It may have nothing to do with selling fuel, such as click-and-collect hubs, co-working facilities and micro-warehousing. Courier companies are very inefficient, with vans making multiple trips each day from warehouses or airports to deliver items in CBDs or communities. It’s not efficient from a time perspective, not good from a carbon perspective and not economical from a fuel cost perspective. So we could potentially provide 350 micro-warehouses in every community across the country.

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How do you generate your ideas? 

SB: All of the ideas already exist in the business or in our conversations with customers so my team doesn't need any domain experience. We're just about identifying, prioritising and accelerating them.

Each of our three core lines of business – commercial, retail and supply – has a strategy lead. We stay connected to them as the subject matter experts in the business and they feed ideas from their sets of customers into the process.

In addition, we do a significant amount of research on consumer trends. How are consumers changing, how is technology changing, how are attitudes and behaviours changing? We then figure out if those changes are relevant to our business. 

Thirdly, we keep a finger on the pulse of our customers and employees, partners and retailers. Anyone can submit an idea into the process to be prioritised.

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With so many great ideas from so many sources, how do you prioritise them?

SB: We do an ongoing analysis of all these opportunities using three core criteria: Economic value, strategic value and customer experience value. 

So, for example, one idea might have a significant amount of strategic value. It could be good to help build our brand or support one of our core businesses or, for example, leap-frog our competition. So it might be selected even if it doesn’t have any economic value.

It’s a very different approach to most corporates where you just take the economic numbers, stack and rank, then take the top three and go after them. It’s about focus on lifetime value of customers, not near-term business performance.

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What’s your advice for retailers wanting to embed innovation in their business? 

SB: There's nothing really ‘new’ in anything that we’ve created, even from an ideas perspective. We focus on our own interpretation of Design Thinking, Lean, and Agile. It’s really just about three things: Customer centricity, experimentation and iteration. 

Having said that, there's no company that we're aware of that does it quite like we do. We’ve taken the best of what we’ve seen that's most applicable to Z and created something that is unique for us.

A lot of innovation labs are semi-independent. They hire or free up people to work in a decentralised operation and only integrate them back into the business once the idea is fully executed. 

Whether it’s internal or external is a philosophical question and there’s no right or wrong model. I'm personally not keen on the external model because of the difficulties it creates bringing it back in, with many ventures having a lack of accountability, ownership and clear transition paths. 

We believe in a centralised model. You've got to solve the challenges of internal antibodies or process problems that stifle or kill off ideas. That's why we spend 50 percent of our time actually working alongside the business, not just building new products and services.

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Want to find out how Infinity can provide you with a platform for faster experimentation and iteration of new customer experiences? Contact Victoria Crossfield at victoria.crossfield@triquestra.com

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More Infinity innovation stories 

Loyalty case study: how Z is boosting sales and repeat visits with Infinity

Z Energy has been using the Infinity unified commerce platform since 2015 to manage more than 80 million annual sales across 350 Z and Caltex retail sites, as well as in 100 commercial sites.

This case study shares how Z is now using Infinity for its new Pumped loyalty programme to create more compelling offerings for customers, build a competitive advantage and lower customer acquisition and retention costs.

Andy Stewart, Owner of Site Systems Platforms at Z, explains that the launch of Pumped was a huge success: 

“The transaction volume and number of new customers created were unprecedented. Week on week, we have continued to increase our loyalty volume within the Caltex network.”

Dan Coffey, Z’s Marketing Strategy Manager, says that its new  loyalty solution is just the beginning: 

“Infinity is the cornerstone of our future innovation and Pumped has the ability to go much deeper than the first iteration we’ve delivered. We’re looking forward to using our new platform to give our customers valuable rewards that keep them coming back for more.”