Maximizing the Path to Purchase at Your Truckstop with Beverages
Beverages are big business for the nation’s truckstops and travel plazas. During , Stephanie Kowitz, senior manager of shopper Insights for The Coca-Cola Co., said beverages are the No. 1 reason for a trip to the store and account for more than one in four trips.
“The cold vault, as we know, is a key driver for the store,” Kowitz said.
However, getting customers on the path to purchase isn’t always easy. Kowitz said 67 percent of gas buyers at truckstops leave without purchasing anything else and 74 percent of gas customers at c-stores leave without buying anything.
But, there is hope. Innovative displays and the right signage can draw fuel customers inside. Kowitz told attendees at that 53 percent of gas buyers reported that they have noticed a sign that has led to a purchase.
For many customers, the path to purchase starts with the restroom, and Coca Cola has worked with operators to create innovative displays to capture customers’ attention when they come out of the restroom.
Kowitz said beverage innovation will continue to drive growth, and revenue growth from new items in the past 12 months reached $3.3 billion, accounting for about 4 percent of the total category. “Beverage innovation, including unique packages, smaller package sizes and functional beverages, shift the category to premiumization,” Kowitz said.
Operators may be able to capture additional sales with ambient beverages. Among shoppers, 9 percent said they prefer ambient plain bottled water and 41 percent prefer the option of both chilled and ambient. When both are available, operators typically see a 16 percent lift in sales, Kowitz said.
Numbers are also similar for bottled water that is flavored or enhanced. Among shoppers, 11 percent said they prefer ambient products in this category and 39 percent said they prefer the option of chilled and ambient. When both are displayed, there was a 23 percent sales lift.
Within the sparkling water category, 13 percent of shoppers said they prefer ambient and 37 percent like the option of chilled and ambient. Stores see a 11 percent sales lift when both are available.
Packaged beverages are one of the most profitable categories, and there has been 23 percent growth in the number of non-alcohol readyto-drink beverages stocked in the cold vault over the past five years.
To be successful, getting the cold vault right is critical. Kowitz said 72 percent of customers said they want to get in and out quickly and 52 percent said they want to easily find the items they need. Having identifiers and simplifying the shopping process can be helpful.
Operators can increase customers’ trip spend with food bundles. “Food has been a key driver in the convenience channel and truckstops. It is all about growing the basket and understanding bundles,” Kowitz said.
When customers are buying beverages only, the typical basket is $5.90. For those buying food only, the average basket is $11.80. When food and beverages are both purchased, the basket is typically $13.80, Kowitz said. “Shoppers spend more when food and beverage are purchased on deal,” she added. “They see that value being better so they’ll be more likely to spend more.”
Operators can build loyalty with fresh beverages. “Fountain is huge. The number of brands in a fountain creates higher excitement for consumers,” Kowitz said.
The majority of c-stores—60 percent—have 10 or fewer fountain brands, and 35 percent of customers report being extremely satisfied with that number. On the other end of the spectrum, 2 percent of c-stores have more than 40 fountain brands available, with 68 percent of customers reporting being extremely satisfied with that offering.
“Consumers like options. Now it is all about impulsivity,” Kowitz said, adding that operators can drive sales by having what their shoppers want. There are 330 immediate consumptions SKUs stocked in an average c-store, but just 18 percent of SKUs make up 80 percent of the dollars within the non-alcoholic beverage category. Kowitz said 63 out of 100 top SKUs have declined over the past year.
Aligning categories can help boost sales. Kowitz suggested operators place the fastest selling category in the first position for ease of sales and place categories commonly purchased together next to each other to encourage cross purchases and larger basket rings.
During the session at 黑料社区Connect, Kowitz demonstrated Coca Cola’s technology that allows the company to create a virtual store so operators can see different merchandising ideas. Coca Cola will work with operators to build out the entire store, going beyond beverages. “We see it as when you succeed, we succeed,” Kowitz said.
Photo credit: Brittany Palmer/NATSO
Subscribe to Updates
The 黑料社区Foundation and 黑料社区provide a breadth of information created to strengthen travel plazas鈥� ability to meet the needs of the traveling public in an age of disruption. This includes knowledge filled blog posts, articles and publications. If you would like to receive a digest of blog post and articles directly in your inbox, please provide your name, email and the frequency of the updates you want to receive the email digest.
