As the industry and market continue to evolve, what has worked successfully in the past will not be what leads to success in the future. The downstream fuel space is experiencing a massive and quickly evolving transformation. Like any industry transformations, there will be those that benefit and those that don't.
The below link to a recent whitepaper by McKinsey & Company does an excellent job of outlining the future of fuel retail. We thought this may be valuable to your business and to your customers, so we're sharing here. Towards the end it outlines key components to winning in the new frontier. We've pulled the first of 3 winning strategies to share below.
What it takes to win
To prepare for the energy transition, forecourt retailers should consider taking three steps:
1. Extract maximum value from core business. Extract maximum value from the core business by using both traditional and digitally enabled levers. Traditional levers could include reducing procurement and logistics costs, enhancing the premium fuels proposition, and optimizing the physical footprint and working capital. Digitally enabled and data-driven levers could include dynamic fuel pricing based on internal and external data on traffic conditions, weather, competition, demographics, and so on; a next-generation loyalty program with personalized offers; and optimized operations using advanced analytics to accurately forecast demand and automate logistics.