DATA-DRIVEN COMPANYLOYALTY & CRMANALYTICS FOR OIL&GAS

DATA-DRIVEN THROUGH LOYALTY ANALYTICSBP selected Accenture to help transform customer experience at the fuel pump using digital and advanced analytics

CHALLENGE SOLUTION BENEFITSThe fuels and convenience retail business is

changing, with increased competition and new products and services providing customers with a menu of choices that they never had before,

so we need to ensure that our customer offering is relevant, tailored and competitive

Accenture used digital tools and advanced customer analytics models to help BP transform

the customer experience and improve its product and service offering

By implementing a new customer relationship management model, powered by advanced customer analytics, BP has a much deeper

understanding of its customers’ needs & expectations

This helps BP increase its overall share of the fuels and convenience retail market, while

improving its customer focus to deliver a more innovative and competitive experience that is tailored, differentiated and digitally enabled

HOW IS THE FUEL RETAILING INDUSTRY RESPONDING TO THE NEWMARKET CONTEXTGLOBAL MEGA TRENDS AND DIGITAL INNOVATION AFFECT THE FUEL RETAILING INDUSTRY

Rapid Technological ChangeDigital innovations are changing the way we live, work & play. The rise of mobile devices shaped the way we communicate and interact.

Changing Customer BaseThe migration from rural to urban continues. With changing mobility trends like electric cars or car sharing; new customers appear while existing customers drop outBehaviour Changes

Customers become more and more convenient, have access to an increased amount of information and show an increased focus on sustainability

Increased Competition & Margin PressureNew offerings & players in the market are driving consumer choice. Increased costs of operation, and increased price sensitivity of consumers

Connecting with the Customer Operational Excellence

Optimizing Costs

Digital Technology & Data

Engaging the Customer

Understanding the Customer

?ENABLED BY...

Pricing

Convenience Retail & Partners

Operations

Loyalty

Marketing

Mobile Devices

MEASURES ARE TAKEN BY THE INDUSTRY TO USE DATA AND ANALYTICS AS THE SOURCE FOR DECISION MARKING

PREDICTED SAVINGS THROUGH AND INVESTMENTS IN DIGITALMARKET CONTEXT

Source: Digital Transformation Initiative: Oil and Gas Industry White Paper –World Economic Forum in collaboration with Accenture, January 2017; Accenture Strategy Energy

Source: 2016 O&G Digital Trends Survey by Microsoft and Accenture

VALUE AT STAKE FROM DIGITAL TRANSFORMATION IN THE ENERGY INDUSTRY(BILLION USD, CUMULATIVE FOR THE PERIOD 2016 – 2025)

INDUSTRY INVESTMENTS IN ANALYTICS AND DIGITAL TECHNOLOGIES(PERCENTAGES IN PROPORTION OF ALL COMPANIES SURVEYED)

GIVEN THIS MARKET CONTEXT, WHAT CAPABILITIES ARE REQUIRED?Marketing & Loyalty

Convenience Retail

Campaign Management Data Monetization Connected Car Retail

mCommerce

Connected Worker

Supply ChainStore Operations B2B / Fleet

Customer Service

Estate & Asset Financial Management

Digital Customer

Know & delight your customers with relevant

& flexible offers

Digital Operations

Drive down costs & increase

margin

Retail Video Analytics

Pricing

REVENUE GROWTH

PROFITABILITYINCREASE

COST DECREASE

OUR FOCUS TODAY

Global Players

(multi-countries, >1500 sites)

Locals(<500 sites)

Middle Tier(500-1500 sites)

BEGINNER LAGGARD CHALLENGER CHAMPION DISRUPTOR

Marketing & Loyalty

mCommerce

Data Monetization

Campaign ManagementConvenience Retail

Store Operations

Pricing

Marketing & Loyalty

mCommerce

Data Monetization

Campaign ManagementConvenience Retail

Store Operations

Pricing

mCommerce

Data Monetization

Campaign Management

Marketing & Loyalty

Convenience Retail

Store Operations

Pricing

HOW MATURE IS THE FUEL RETAIL INDUSTRY IN THESE CAPABILITIES?BENCHMARKS VS INDUSTRY

Industry Tier Median Industry Tier Range

HOW MATURITY LOOKS LIKE IN MARKETING, LOYALTY & CAMPAIGN MANAGEMENTMarketing & Loyalty Campaign Management

How can I measure engagement with my loyalty program? Are my campaigns truly personalized?Who are my high value customers?

And how can I improve this engagement?How many channels can I use to reach my customers?

Why do they visit my forecourt?

Are my rewards covering my customers’ needs?Do I take advantage of the additional capabilities of the digital channels?

Which are their top missions?If not, what additional rewards should I introduce?

Can my offer change real time based on what my customer just bought?Where else do they shop from?

And how can I further differentiate my loyalty offer proposition?And are my campaigns tailored to the loyalty customer lifecycle?

And how much headroom do they have?

… WHAT ANALYTICS ARE NEEDEDLOYALTY

SEGMENTATION CHURN ANALYSIS CHANNEL PROPENSITY

FUEL & NON FUELUP SELL ANALYSIS

NON-FUEL CROSS SELL ANALYSIS

HEADROOM ANALYSIS

CROSS PROMOTION EFECTIVENESS FUEL PRICE

SENSITIVITY

3600 View of the Business

... WHAT DATA ARE REALLY NECESSARY

Financial• Daily Financial Report• Method of Payment

Report (Daily/Monthly)• VAT Collected with

Sales• Daily Reconciliation• Shift ReconciliationWet Stock• Wet Stock Reconciliation• Fuel Sales Report • Fuel Sales

Reconciliation• Pump Test

Reconciliation

Loyalty• Loyalty Coupons

Redeemed• Loyalty Discounts

Applied• Loyalty Points

Awarded/Redeemed• Vouchers RedeemedSales• Sales Mix Report• On Hand Variance• On Hand Report• CR Margin Report• Retail Item Report• VAT Rate Change• Customer Footfall

Report• Combined End of Day

Reporting

Non-Exhaustive

3600 View of Customer

…but a Data OpportunityA Data Challenge…Disparate sources and availability of data Multiple sources of insight to extract value

Shopper Information• Postcode• Age• Gender• Date of Birth• Home Location• Occupation• Income Group• Marital Status• Number of Kids• Contact Information• State of Health• Family Unit• Social Behaviour• Attitudes & Beliefs

Demographic / Psychographic

• Vehicle Type• Vehicle Make/Model• Vehicle Capacity• Estimation of Tank Size• # of People in Car• License Plate• Car Efficiency• Vehicle Diagnostic Information

Vehicle Information

Dispenser• Number of fuels per pump• Flow rate• Nozzle type• Primary Display typeFuel Product• Gasoline• Kerosene• Fuel Oil• Alternative Fuel• Fuel Additives• LPGPricing• Price per fuelling grade

Fuelling Information

Site• Site IDs• Site Location• Facility DetailsForecourt• Dispenser IDs• ATG & Tank IDs• Car Wash IDs• Media Screen IDs• CCTV IDsIn Store• POS / BOS / SS IDs• Printer / Scanner IDs• Media Server IDs• BMS IDs

Asset InformationPayment Method• Credit Card• Cash• Prepaid• Other (mPayment)Payment Details• Amount Payment Made• Number of Payment Made• Percentage of Payment Made

Payment Behaviour

Monetary• Customer revenue • Revenue per Trip• Monthly Revenue• Weekly Revenue• Average Revenue per customer

Spending Behaviour

Peak and Off Peak Traffic• Total Number of Visits Weekly• Total Number of Visits Monthly• Total Number of Visits Annually• Time of Visit• Day of Visit• Visit Frequency• Regularity

Shoppers Visit Information

Non- fuel Retail• Car Wash Auto• Car wash Manuel• Tire Pressure• Air/Water Pump• Outdoor Vacuum• Cash Machine• CCTV

Forecourt Products

Media screens:• Marketing information• 3rd Party vendorsPOS• Use of Specialised POS Software

for disabilities • Retailer Shifts• Usage informationCCTV• Number plate recognition• Customer Trending• Vehicle InformationTelecoms• Bandwidth usage• Priority Traffic

IT Systems

In Store Consumption:• Fridges• Freezers• HVAC• Lighting• Indoor Media ScreensForecourt Consumption:• Canopy lighting• Car Wash• Air pressure• Cash machine• Price Pole• Dispenser• ATG• CCTV

Energy ConsumptionCR Shop• In store Services• Food• Tobacco• Phone Cards• Non-Food• Non alcoholic beveragesNon- fuel Retail• Lubricants• Lube Services• C Store• Restaurant• Cash Machine

In Store Products

Loyalty Related• Type of card• Card Status• Tenure• Total Points Redeemed• Total Points Accumulated• Total Points Redeemed

Loyalty Program

… AND WHAT DIFFERENCE DOES IT MAKE?GLOBAL BENCHMARK RANGES

Marketing & Loyalty

Campaign Management

Convenience Retail Fuel Pricing Mobile /

mCommerce Operations Data Monetization

# of Loyalty customers:+10-15%

Campaign operational process

costs:-20-30%

Basket size (cross-and up-sell):

+10-15%Margin per litre:

+1-2%# of customers:

+5-10%Operational cost:

-5-10%Additional turnover:

500k-1,5m€ per year

Loyalty fuel volume: +10-20%

Customer incentive cost:

-15-35%Shopper frequency:

+10-15%Fuel volume:

+1-3% Fuel volume:

+5-10% FTE refocus or

elimination:+10-40%

Churn rates:-15-20%

Campaign cycle time (“from planning to

go-live”):-30-50%

Shop margin based on assortmentoptimization:

+2-5%

Higher margin (premium) fuel

products:+7-10%

App operationalcosts:

-10-25%Go-to-market time:

-10-20%

Avg. customer lifetime:+5-8%

Campaign ROI improvement: 50%-

120% ATL Marketing ROI:

+5-15%