Caltex Petrochem

Caltex Petrochem Caltex Petrochem

Looking for loyalty - a case of David vs Goliath

Sanjai Bagia's family business started with just one humble news agency and has grown to own seventeen independent retail sites - many of them Caltex - throughout the country.

Once Sanjai's family acquired these sites, Caltex consolidated their operations and got out of the retail part of the business, leaving only a fuel supply arrangement.

Regardless of how much petrol the Bagia family sold their income all came down to how many products they could sell.

Competing with the likes of Mobil, BP and Z petrol stations - corporate giants with deep pockets - Sanjai faced a huge challenge. How to stand out from the rest, keep their customers coming back and have them spend more in-store? Sanjai knew the answer was loyalty. "If a customer is fueling with someone else or not visiting us enough, then how can we actually change that behavior?"

Win-win situation

Sanjai knew the value in loyalty programmes that reward customers so they keep coming back.

The Bagias had an existing loyalty programme that came with the Caltex brand. But since it was for fuel, not in-store goods, it was of little value. The other issue? Smart Fuel owns all the customer data, making it only affordable for the larger corporations.

The Bagias needed a loyalty programme that rewarded their regular customers, while also delivering more affordable customer data that could be used to sell in-store products. But with more than 170 staff members to train across multiple locations, they knew they needed an easy-to-use platform backed by a supportive team.

They chose the Goody loyalty programme for the Goody team who Sanjay says are "just excellent", and for the platform itself. "There are other systems out there, but Goody had the technology and the simplicity."

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The power of data

Goody gave them access to valuable customer data - unlike their existing loyalty programme. With that data came great power.

Not only do customers come in to use their app, but each time they do, Sanjai gains valuable information on what they purchase, helping him offer rewards he knows customers will love.

The data, says Sanjai, is not too dissimilar to existing fuel-based loyalty programme, which he can use to actually understand his customers better. He says this influences what he sells, how he sells it and what kinds of services he needs to provide. Powered with this knowledge, sales have skyrocketed.

"I think we've seen the biggest results in our 'Food to go' areas. We used to sell about 100 cups of coffee a week, now we're selling maybe about 100 a day! Goody has been part of that."

The secret to their success - driving it in-store

In the two years since Sanjai implemented Goody throughout his sites, he has seen a huge return on investment. 20,000 or more people have signed up, all wanting to come back and use their app, not just for fuel, but to purchase in-store goods.

"I'd say that we well and truly recouped the returns in the Goody system - there is no doubt about that. I think we've done well and I think there is a lot more opportunity to come."

Frenchie & Co.
Frenchie & Co.
AUT University

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