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This year has been a technological revolution for the convenience store industry. Large and small retailers have regularly announced new partnerships with tech and artificial intelligence companies or revamped their loyalty programs.
Now that convenience retailers have gone all-in on tech, the conversation is shifting towards profitability. Are these investments actually paying off? How can operators measure their ROI and broader impact across the business?
“They absolutely can pay off, but retailers need to be clear about what they’re trying to accomplish before making the investment,” Andy Bennett, group president of convenience retail for transportation and mobility company Vontier, said in an interview.
Bennett said operators should start by asking what problem a new technology is meant to solve and how they’ll know whether it’s working.
“There’s an important distinction between measuring the performance of an individual technology and understanding its impact on the broader business,” he said.
Measure tech against business outcomes
When considering what impact newly added systems are making, Bennett advised c-store operators to look at everything happening across their stores — from fuel and payments to foodservice and loyalty — and assess how the technology connects those experiences and reduces friction.
For instance, if a retailer is investing in a new point-of-sale system, might they expect to see faster checkout times, fewer transaction problems or better store productivity? If they’re adding new loyalty technology, are customers visiting more frequently or spending more per transaction?
Bennett emphasized that a system might work exactly as intended, but if it does not improve the customer experience, reduce operating costs or contribute to revenue growth, the retailer may not be getting the return they expected.
“Ultimately, ROI should be measured against tangible business outcomes, not just how many new capabilities a retailer has introduced,” he said.
While c-stores have a long track record with technologies like loyalty platforms, artificial intelligence is beginning to move beyond the conversation stage and into applications that can make a real difference in day-to-day retail operations, Bennett said.
AI-powered self-checkout, for example, is helping retailers rethink how customers move through stores during busy periods. The technology can also help retailers better analyze all the data their stores are producing.
