Building fuel & c-store loyalty that lasts: A new approach for operators

C-store loyalty programs have been around for decades. But what once was a simple punch-card reward system has today evolved into a sophisticated digital environment, where apps, points, and rewards work together to fuel customer loyalty.

However, traditional loyalty rewards that c-store and fuel programs have been built on for decades aren’t what’s going to build long-term loyalty with customers past day one. Here’s where it falls apart: 

• Traditional c-store loyalty programs are built on purchase-triggered rewards, which creates an immediate problem: your most regular customers – the ones visiting a couple times a week for coffee and a fill-up – get the same discounts as occasional visitors. 
• The bigger issue emerges in the first 30 days after enrollment, as members get a welcome bonus, then silence. Without a reason to return before their first purchase (and often requiring a purchase to unlock rewards), they churn. The larger your program grows, the more members you're managing in this dormant state.

One thing should be clear to fuel & c-store operators today: the old playbook doesn't work anymore. You need a way to build frequency without discounting your way to zero margin.

In this article, we explore a new way to re-engage your loyalty members and bring them back through fully-funded rewards that delight your customers through gameplay – all without changing your existing program or cutting your margins. 

👀 Are you a fuel or convenience retailer heading to PDI this August? Connect with us!

Why the current approach to fuel & c-store loyalty programs isn’t working 

Customers stop at the forecourt with limited loyalty-driving interactions. Being in and out in minutes, there’s almost no time with customers to build the kind of emotional connection that drives loyalty in destination retail – only 49% of customers actually use a fuel or convenience store loyalty program regularly.

Discount-based loyalty erodes margin on your most profitable customers. At 3-5% margins, every percentage point matters, and relying on discounts cannibalizes margin on already loyal customers. That means operators can’t afford to keep funding re-engagement purely through discounts.

Third-party delivery apps have fundamentally changed what loyalty needs to compete against. A customer deciding whether to stop in for coffee now competes against a push notification from DoorDash offering convenience and speed. The competitive set isn't even other c-stores anymore, meaning loyalty programs built around purchase discounts have no advantage against the behavioral engagement that delivery platforms provide. 

Some c-store operators are solving this by shifting how their loyalty programs work: instead of purchase-triggered discounts, they're introducing earn-without-purchase rewards where members earn through other actions – like gameplay.

👀 Related reading: How to create a successful loyalty program

A new alternative: Partner-funded gaming rewards

One way to have your customers come back more often is to offer them something that makes your loyalty program stand out from the competition, and adds a layer of playfulness to a more mature industry – game-linked rewards.

Game-linked rewards work because they tie earning to an activity your customers are already doing. According to Statista, 67% of US adults play mobile games weekly. By embedding game offers into your loyalty program, you create earning opportunities tied to your brand during moments when your customers are already engaged with gaming.

For example, GoMart – a 100-year-old convenience store chain based in West Virginia – integrated game-linked rewards through LoyaltyPlay. Customers can now earn an instant fuel discount simply by downloading and playing a featured mobile game, and so far this has resulted in:

• 34% of monthly active customers engaged
• 85% overall reward redemption rate.

The appeal is straightforward: members can earn fuel discounts or store rewards by playing a game, then redeeming those rewards at their next visit. The game becomes a conduit for earning, not an entertainment offering.

“What we hear from operators like GoMart and Sinclair Oil is that the first 60 days can make or break a loyalty program. Members don’t need another discount – they need a reason to engage before they’ve spent a dollar. Game-linked rewards give them that. They earn while they're already doing something they enjoy, then come back to redeem - and that behavior is why we’re seeing redemption rates far higher than most discount-based programs ever achieve." – Jennifer Taylor-Glick, Director of Customer Success, Mistplay

How it works

1. A rewarded layer is added to your loyalty program, tying your brand to a catalog of top mobile games and introducing a new engagement mechanic to your app ecosystem – it’s a low-lift procedure that requires minimal setup.
   
   
2. Customers start receiving rewarded gaming offers through your channels (email, SMS, app notifications), driving them to repeatedly return to your app to play games and earn rewards that they can spend at your store, such as fuel discounts.
   
   
3. Customers head in-store to redeem the reward, creating a loop of repeated engagement. On the flipside, you get paid for each game download, covering the cost of the reward so that you can reinvest directly into your program.

💡Explore the LoyaltyPlay gaming reward hub for fuel & c-store

Why rewarded gaming works for c-store and fuel: The power of earn-without-purchase 

Most of the time, traditional rewards are tied to purchases: customers get a percentage off of their total, or they get a free item if they spend a certain amount.

What rewarded gaming does is lean into the earn-without-purchase. Your customers don’t need to buy anything from you to get a reward, and they can use their time (an unlimited resource), instead of their money (a limited resource). 

Moreover, your customers will feel like they’ve earned the reward; you’re not simply giving it to them. This has an interesting psychological effect: something that is actively earned feels more valuable than something gifted, and that’s why earned rewards tend to redeem at a higher rate.  

This approach is especially valuable in the first 30 and 60 days of signing up to your loyalty program, which is where most loyalty members go dormant: they get their welcome bonus, and they stop engaging. By showing that you value the relationship with them right from the start, you create a stronger sense of loyalty, encouraging frequent visits to the store to redeem the rewards. 

“What sets your app apart from your competitors? What reasons have you created for your loyalty customer to visit the app on a regular basis? LoyaltyPlay boosts app visits through gameplay, as your loyalty members will turn to your app to discover games rather than app stores, with milestone-based rewards keeping them coming back to earn overtimeWith this approach, we’ve proven that when stacking rewards through gameplay, visit frequency and basket size will skyrocket.” – James Erickson, Director of Enterprise Sales for Convenience, Mistplay

How LoyaltyPlay can help get customers back in-store and to the pump

If you’re interested in using game-linked rewards to increase engagement and loyalty, then LoyaltyPlay can help you with that. It’s Mistplay’s rewarded gaming hub, and it’s designed to be low-lift and easy to integrate, so there’s no extra effort needed on your side. 

C-stores like GoMart and fuel brands like Sinclair Oil are already seeing the benefits of rewarded gaming through LoyaltyPlay, achieving results like a 42% increase in store visits and 35x higher redemption rates. 

Gaming rewards are driving more pump-to-store visits than usual, showing a stronger redemption rate than traditional rewards, and encouraging your customers to actively earn and burn rewards rather than stacking and never using them. All this – combined with Mistplay fully funding the rewards – translates into a more efficient loyalty program and greater revenue for your brand.

Find us at PDI Connections Live on August 26th in Grapevine 56 at 8:30am for “Beyond the pump: How Sinclair Oil turned a daily habit into its next loyalty engine,” a discussion on Sinclair Oil’s success with LoyaltyPlay. 

Ready to start engaging your customers in a new way? Reach out to us today to learn how LoyaltyPlay can help.