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Z CVP Change
Awards
Industry Silver – Retail
Entrant
Loyalty New Zealand
Nominee
Z Energy
Entrant Credits
Suzanne de Geus, Kelly Taylor, Sarah Anderson
Nominee Credits
Barbara Hinkley, Angela Wurst
Entry Rationale
As well as high-quality fuels, such as ZX Premium Unleaded, Z prides itself on outstanding service, including fresh food and coffee, forecourt concierges, and hotel-style bathrooms. They are also the only New Zealand fuel provider to offer Fly Buys, and regularly give back to the communities that support them. Through their annual Good in the Hood programme, over $2 million has already been distributed to local neighbourhood groups chosen by Z customers.

In a competitive market, fuel providers have to work hard to find a competitive advantage. For Z, one of these points of difference is Fly Buys. However, it was recognised that the relatively complex customer value proposition (CVP), or how customers collect Fly Buys points with Z, was contributing to a downward trend.

So in July 2013, radical steps were taken to change the CVP, reinforce Z=Fly Buys and re-engage their best customers. A 12-week campaign that centred on targeted and broad-base eDMs to Fly Buys members spread the word that now at Z, Every Drop Counts.

A comprehensive communications strategy was developed to retain high-value customers (crucial to business and most affected by the change), communicate the new CVP, and highlight ‘destination products’ – in particular the Z Espress coffee range and Z20 carwash service. With lots of competitive noise in the market, it was important to have a clear Fly Buys offer that was easily understood.

The customers got the new CVP, and filled up their cars accordingly. They also found the new bonus points offers on other Z products compelling, and bought more of those too.

The campaign centrepiece was a series of eDMs to target groups as well as to a broad untargeted Fly Buys group, supported by a postcard DM to top-tier customers, web tiles on z.co.nz and flybuys.co.nz, Facebook posts and advertisements in the Fly Buys Rewards Guide and Points Summary DMs. Additionally, 100% of staff had to complete the Fly Buys CVP training prior to the change.

And by comparing the purchasing behaviour of Fly Buys members who were contacted with those who weren’t, a clear correlation can be seen between this campaign and the resulting sales.