Gas Attack

Much like it is here in the U.S., the U.K. petrol market is fueled by competitive pricing — but few real price advantages for consumers. Throw in ever-rising fuel costs and a flailing economy, and you’ve got every reason to believe that a promotion awarding cash back to loyal customers is going to be a big hit.

And it was.

London-based agency Clarke Hooper Momentum recently earned a much-coveted “Best Award” in the “Best Activity Generating Brand Loyalty” category from the SPCA for a campaign it conducted for Conoco, which operates more than 500 Jet service stations throughout the U.K.

Dubbed Smile, the promotion launched in 1999 as part of a nine-month pilot program, and consumers responded so well that the company rolled it out nationally in February 2000. Still running today, it has been performing ever since.

Conoco’s numerous objectives were to retain and build frequency among existing customers, reduce petrol churn rates, attract new customers, profile customer spending patterns, appeal to both high- and low-volume users, and build on Jet’s “friendly and local” brand positioning. The chain’s last promotion, a campaign called Jetcash, ended in July 1998, and fuel volume and shop sales had dropped by 15 percent in the interim.

Smile is an electronic loyalty program that sends consumers checks, “buy and fly!” points, or retail vouchers once they accumulate a certain number of points. They earn points by making purchases at participating Jet service stations. Consumers get one pence for every liter of fuel they purchase, two pence for every £1 they spend in a service shop, and 15 pence whenever they have their car washed at a Jet outlet.

Customers who sign up for a Smile card receive a special account that can be accessed as soon as they accrue £15. There is no limit to the account size, and participants can “withdraw” as much money as they want (minimum £15) in multiples of £5, £10, and £15. Registration forms are available in Jet service stations across the U.K.

Jet’s partner is buy and fly!, a service that lets consumers redeem points for flights and vacation packages around the world. For example, 10 Smile pence are worth one buy and fly! point, so a Smile participant can earn a round-trip ticket to Paris for 3,900 Smile pence, or a trip to New York for 25,000 Smile pence.

To make the program even more appealing, Jet is offering a Big Smile overlay in which families are encouraged to request up to three extra Smile cards and save money even faster by pooling their accounts. Schools, local businesses, hospitals, offices, and charities can also sign up for group accounts. “Community groups can save together for a local cause, allowing lower mileage customers to see the benefit at a local level,” says Roy Roley, Jet’s brand communications manager.

The brand created awareness for the promotion through a targeted direct-mail piece sent to former Jetcash customers and current credit card users. The mailing contained a 50-pence credit for opening a Smile account. Eye-catching in-store P-O-P materials, individual customer wallet cards, Big Smile welcome packages, extensive p.r., and information on the company’s Web site rounded out the promotional support.

A third overlay dubbed Diamond Smile is an employee incentive that gives service station salespeople their own points to tout the promotion to customers. Salespeople earn points for every Smile purchase. (For tax reasons, the salespeople can’t be awarded cash). “The response has been incredible, with more than 3,500 staff members already registering for the scheme,” says Roley.

Jet is keeping the promotion fresh by changing point values on a regular basis. The largest trade incentive awarded so far is one million points, worth about £100.

More than one million people are currently participating in the Smile program, and more than 48 percent of regular Jet customers have completed registration forms. The program has generated more than 250,000 Big Smile members; about 7,000 parents, teachers and government officials are saving for schools, and about 3,500 office-workers are saving for their companies. The promotion has generated a 29-percent increase in volume, and the average consumer spend has risen by 20 percent.

Current redemption levels show that 97 percent of the participants are redeeming their points for cash — proving that, when it comes to loyalty programs, money always talks.

Amie Smith reports on international trends for PROMO Magazine. Reach her at [email protected]