Saturday, November 4, 2023

Is Cash-Back the New Cost of Customer Acquisition


What is the price of new customer acquisition and retention? Business models within the restaurant, convenience store, and grocery sector are all evolving.  One of the most successful companies globally is Aldi.  Aldi has a dual focus of fun discovery with low prices.

According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® full flavored fresh prepared food and beverages that are portable is an increasingly consistent attention getter for consumers that drive branded meal adoption.  

However strange as it may sound, many restaurants use technology too introduce a new customer and deep digital discounts to entice consumers to keep coming back.  

Circle K recently renewed its partnership with Upside for fuel-related offers at more than 5,200 convenience stores. The two companies will also be expanding their relationship, with Upside introducing cashback opportunities for convenience store merchandise at more than 4,000 Circle K locations across the U.S. 

Matthew Solly, head of global fuels and car wash category management at Circle K, stated, "Circle K is constantly looking for ways to introduce its brand to new customers," ... "Thanks to our collaboration with Upside, we're engaging with consumers whom we might not have otherwise reached."

Regular readers of this blog know that Circle K initially partnered with Upside in 2019 to provide personalized offers to its customers and help increase sales profits at its stores. Upside's convenience store feature also specifically focuses on driving increased pump-to-store conversion, trip frequency and basket size. 

Sam Berkovitz, vice president of account management for fuel and convenience stores at Upside, stated, "The retailers leading the market today know that a variety of digital tools are required to grow consumer wallet share," …. "[Circle K] recognizes that influencing consumer behavior needs to involve digital engagement alongside strong on-site execution, prompting them to adopt innovative strategies to outshine their competition." 

In case you did not know, Upside is a digital marketplace that connects consumers with brick-and-mortar retailers nationwide. Its mobile app and partner apps reach more than 30 million consumers and have helped its retailer partners generate more than $1 billion in incremental profit. The company currently works with more than 100,000 gas stations, c-stores, grocery stores and restaurants in all 50 states and Washington, D.C. 

Do you know the price of new customer acquisition and retention for your retail food outlets?  

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

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