Caltex is one of two AA Smartfuel fuel partners, alongside BP. With more stores concentrated in rural New Zealand, Caltex can’t compete with BP’s larger national network. But Caltex’s contract with AA Smartfuel is a huge investment and they needed to build more value from their involvement.
Caltex undertook significant research and data mining and complimented this through grass roots interviews with their retailers. They then relaunched the brand with a strong local positioning, and set out to create one-to-one connections between local owners and their neighbours in the community. As the only fuel network that is owner-operated by locals, this brand platform was authentic and was widely embraced.
Instead of the untargeted promotions to everyone, they used data to align offers with the individual stores and customer segments that could deliver them the healthiest return. Success would allow Caltex to improve AA Smartfuel’s performance in their business.
Store-based micro targeting was deployed, aligned with behavioural segments to make Caltex’s offers timely and relevant. They amplified the connection to local communities, to distance Caltex from the sophisticated “head office” feel of their competitor’s sophisticated marketing.
A 3-month test eDM programme was rolled out that that spoke to the customer through the voice of their local Caltex station. The local station data was allocated using AA Smartfuel transactional data that is based on customer fuelling habits.
As a result, Caltex could target potential lapsers with compelling personalised offers directly from their preferred Caltex station to reduce the chances of sustained decline.
The 3-month pilot saw an 85% uplift in volume year on year: a mammoth achievement in a completely commoditised industry driven by on-going price promotions.