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Introduction

Fuel retailers continue to offer a range of cards for their private customers. As they have had to respond to card markets at different stages of maturity, propositions are very fragmented ranging from schemes that provide rebates, to multi-retailer loyalty programmes and co-branded credit cards. This brief examines the different types of customer cards available.

Scope

*Profiles of fuel retailer customer cards across 9 European markets, including data on fuel discounts and third party relationships.

*An overview of the levels of fuel discount offered and a discussion of how the necessity to offer fuel discounts varies between markets.

*Insight into how fuel retailer-affiliated card propositions with a large number of partners can increase the usefulness of the cards to customers.

*Examples of how fuel retailers have used cards to encourage customers to make higher value purchases.

Highlights

Most fuel retailer card propositions do not offer rebates on fuel; fuel retailers are more likely to allow points to be redeemed against shop products. However, some supermarkets and fuel retailers with smaller networks have been motivated to offer discounts on fuel. These range from less than 1% to 5%.

Fuel retailers should use their cards to encourage existing customers to make purchases that they otherwise would not have. Shell in the UK has been particularly innovative in this respect. It offers selected card holders double points on purchases of its premium fuel.

In markets that have a high usage of credit, it is advisable for fuel retailers to launch a co-branded credit card. One of the main benefits of a co-branded credit card is that the fuel retailer retains a proportion of the card revenues generated which in turn can be used to fund higher discounts on fuel.

Reasons to Purchase

*Gauge which features you should include in your card programme and how these should be tailored to different markets.

*Gain a view on how customer cards can be used to increase awareness and sales of non-fuel products, and encourage the purchase of premium fuels.

*Maximise the utility of your customer card for motorists by entering into the most appropriate multi-retailer scheme.

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
SOURCE 1
ANALYSIS 2
Fuel retailers do not have to offer regular fuel rebates as part of their loyalty programs 2
The larger fuel retailers have generally chosen not to offer rebates on fuel 2
There are a number of reasons behind fuel retailers' decisions to offer rebates on fuel 3
Multi-retailer loyalty schemes with a large number of partners increase the utility of fuel retailer-affiliated cards 4
There is much potential for companies that run syndicated loyalty schemes to launch additional programs 4
Given the shortage of schemes, only large fuel retailers have been able to join a coalition loyalty program 5
Fuel retailers entering into an independent scheme should seek to create motorist-focused groupings 5
Fuel retailers in independent schemes have not taken advantage of the potential partnerships with insurance companies and hotels 6
Loyalty schemes can be used by fuel retailers to increase awareness and sales of their non-fuel products and encourage the purchase of premium fuels 7
Fuel retailers differ significantly in how they enable the redemption of points on non-fuel items 7
Loyalty schemes should be used to up-sell to existing customers 8
Fuel retailers of all sizes can use loyalty schemes to improve their brand image 9
In certain markets, fuel retailers should use co-branded credit cards to raise revenues and increase loyalty 10
Fuel retailers should seek to exploit consumers' growing use of credit cards 10
Despite the higher revenues that can be generated from co-branded credit cards, fuel retailers have yet to exploit this area fully 11
Fuel retailers wishing to launch a co-branded credit card should seek to partner with the most popular issuers 12
It is important for fuel retailers introducing a co-branded credit card to enter into one of the popular acceptance schemes 13
Fuel retailers' primary focus should be on developing credit card offerings in the UK and Ireland 14
APPENDIX 15
Definitions 15
Further reading 15
Ask the analyst 15
Datamonitor consulting 15
Disclaimer 15
List of Figures
Figure 1: Jet offers customers in Germany a 5% worldwide rebate on fuel 2
Figure 2: Only four European fuel retailers belong to a syndicated loyalty scheme 5
Figure 3: Of those fuel retailers participating in independent loyalty schemes, only Tesco in the UK has a car insurance company and a hotel chain as members 6
Figure 4: Redemption on non-fuel items is focused on service station shop products and catalogue gifts 7
Figure 5: In a consumer survey, over 85% of Italian respondents believe that their trust is increased by companies participating in 'socially responsible activities' 9
Figure 6: By 2011, Finland, Norway and Turkey will have the highest number of credit card transactions per adult 10
Figure 7: There are no co-branded credit cards in Italy and Switzerland 11
Figure 8: In most European markets there are generally two or three major credit card issuers 12
Figure 9: EuroCard/MasterCard and Visa are by far the largest acceptance schemes in Europe 13