Z's loyalty strategy : great Customer Experience delivers customer retention and grows wallet share

Z's Chief Digital Officer, Mandy Simpson, presented at Z's investor day in July. She noted that Z have a Customer Value Proposition (CVP) which remains focused on holding market share. Keeping customers is one clear definition of customer loyalty. Market share declines are halted and is (in 2021) growing. They're doing this together with digital services and competitive pricing rather than driving for premium pricing. On pricing, once the Pumped discounts (which work with Airpoints and Flybuys) are included - Z's prices are the same or lower than unmanned competitors.

Customers interacting digitally has reduced operating costs (as customers interact unaided). The various forms of Pay at Pump has helped Z be "fastest to get in and out of" and 40% of transactions are now out on the forecourt. They're installing 1,500 new touch screen terminals at pumps with 40% already deployed. They're faster and more reliable. Customers can already order coffee before they arrive and other drinks are being added to that capability.

More payment on the forecourt has reduced the number of people in store queues with wait times reduced. It hasn't seemed to hurt store sales. Their store retail business is as big as the New Zealand arm of Restaurant Brands (KFC, Pizza Hut, Taco Bell, Carl's Jr) and one and a half times bigger than McDonald's New Zealand business.

Customer Experience is in addition to competitive pricing. When their Customer Experience innovations solve customer's problems Z gets big benefits back. Sharetank has shown great customer experience can directly lead to increases in share of wallet.

Lots of experiments are driving app adoption (most likely through their Innovation Refinery). The Innovation Refinery's Design Principles use Ellipsis & Company's Customer Loyalty Pyramid.

Radio New Zealand reports that Z is a takeover target with Ampol being a possible bidder. Ampol owns Gull in New Zealand.

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