HOW PETROLEUM MARKETERS CAN USE TECHNOLOGY TO DRIVE GROWTH AND IMPROVE EFFICIENCY

Technology in the petroleum industry is no longer simply about replacing manual processes with software. For gas stations, convenience stores, fuel wholesalers, propane companies, and other petroleum marketers, the larger opportunity is using technology to improve the customer experience, increase revenue, reduce administrative work, and make better use of the enormous amount of data already available to the business.

The key is not necessarily adding more technology. It is making existing and new technologies work together.

Websites and Social Media

A company's website is increasingly its digital front door and credibility check. Potential commercial fuel, propane, fleet, and retail customers frequently research a company before ever making contact.

A modern website should provide more than company information. Online bill payment, account access, current pricing, locations and hours, loyalty enrollment, and service or delivery requests can turn a website into a working extension of the business.

Social media provides another important connection. Facebook and Instagram can drive consumer traffic through promotions, loyalty offers, and community involvement, while LinkedIn can help wholesalers and petroleum marketers remain visible to commercial, fleet, agricultural, dealer, and reseller customers.

Mobile Apps and Loyalty Programs

For retail operators, mobile apps and loyalty programs can become powerful tools for increasing customer frequency, basket size, and retention.

The most effective programs go beyond simply awarding points. Customer purchasing data can be used to create targeted offers based on actual behavior. A customer who frequently buys coffee can receive a breakfast offer, while an energy-drink customer can receive promotions relevant to that category.

Tiered loyalty programs can also encourage customers to visit more frequently or spend more to reach the next reward level. Mobile apps extend the relationship beyond the store by providing push notifications, digital offers, mobile ordering, payment options, contests, and account information.

Most importantly, loyalty data allows retailers to understand who their customers are, how often they visit, what they purchase, and which promotions actually influence behavior.

Customer Portals

Customer portals have evolved far beyond providing online access to invoices. A well-designed portal can become the digital connection between a fuel marketer and its customers, providing self-service access to invoices, statements, pricing, orders, delivery history, documents, tank inventory, and other account information.

The benefit extends beyond customer convenience. Every routine question customers can answer themselves reduces work for customer service, accounting, dispatch, and sales.

The greatest value comes when the portal is integrated with the ERP and other relevant systems so information is current, accurate, and automatically available rather than manually maintained in multiple places.

Tank Monitoring and Delivery Optimization

Tank monitoring is traditionally associated with preventing runouts, but its potential is considerably greater.

Real-time inventory information can improve delivery planning, reduce unnecessary deliveries, better utilize trucks and drivers, and provide customers and dispatchers with greater visibility.

The next step is using historical consumption, tank levels, delivery history, and other data to help predict when a delivery will be needed and how much product should be delivered—turning tank monitoring from a reporting tool into a planning tool.

Pricing Technology

Petroleum marketers manage enormous volumes of pricing information that can change daily or even multiple times per day.

Modern pricing tools can consolidate supplier and terminal pricing, identify changes, compare supply options, calculate and distribute customer-specific pricing, and make current prices available electronically.

Automation can reduce the time employees spend transferring information between emails, spreadsheets, ERP systems, and customers—allowing them to spend more time making pricing and supply decisions rather than moving data around.

The Bigger Opportunity: Connecting Everything

Perhaps the greatest technology opportunity for petroleum marketers isn't any single application.

Most companies already have tremendous amounts of valuable information residing in ERP systems, POS systems, loyalty platforms, mobile apps, tank monitors, ATGs, supplier feeds, pricing systems, websites, and customer portals.

The real competitive advantage comes from connecting these technologies and turning their data into actionable information.

Technology should ultimately accomplish one or more of four things: increase revenue, improve customer experience, reduce operating costs, or help employees make better decisions.

The petroleum marketers that approach technology with those objectives—rather than simply implementing the latest software—will be best positioned to grow their businesses and compete in an increasingly digital marketplace.

Article By Mark Lotstein

President of ROG Consulting

www. rogconsulting.net

Insights on topics provided by

Christian Hanna – Retail Media Solutions

Davy Nixon – PDS Solutions