When the October 2020 liability shift date was still in effect, Conexxus conducted a survey of gas station owners and found that 70 percent still hadn’t deployed EMV technology at a single site. Forty-three percent said the risk doesn’t justify the expense of upgrading.
But it pays to think of compliance as an opportunity to evaluate your overall business strategy—and take concrete steps toward modernizing your store and differentiating your brand experience.
First, consider your customers’ expectations. The fact that consumers see EMV chip card technology as overwhelmingly positive helps to justify compliance. Indeed, in a 2018 Worldpay survey:
- 82 percent of credit card users reported positive EMV chip card experiences
- 72 percent rated EMV technology as more secure than magnetic stripe technology
But that’s not the only way you can invest in your customer experience. While you’re updating your outdoor payment terminals for compliance, consider adding cloud-based forecourt advertising technology to your pumps to drive added ROI.
By serving personalized promotions, loyalty offers and other content via videos that play above the fuel dispenser while consumers fill up, you can differentiate your business and increase overall revenue, by promoting purchases like higher-margin foodservice items that drive people inside the store to buy more. Or you can offer the ability to order at the pump for curbside delivery.
Think of that extra convenience...wrapped in a more memorable experience. It goes a long way in giving your customers a good reason to come back again and again—especially if they can’t get that modern, personalized and engaging experience at any other gas station nearby.
It’s a strategy that works:
- 62% of shoppers are influenced by rewards for food & drink purchases, according to a Coca-Cola MFour 2019 report
- 84% of shoppers like the idea of pre-ordering drinks, snacks or other store items ahead of time or at the pump (Source: Coca Cola MFour report NACS 2019)
Ernie Floyd, senior director of product management at NCR, agrees that implementing a consumer engagement platform with EMV enables fuel merchants to combine EMV compliance with higher revenue. When calculating the return on investment from combining EMV compliance and consumer engagement platform implementation, Floyd recommends including both potential cost savings and potential new revenue.
- Cost of current charge-backs x 10 (to account for a predicted increase in fraud starting in 2020)
- Acquirer cost for lower-/higher-risk merchants
- Lost revenue from impacted customers and negative publicity
- Cost of recovering brand reputation
Potential new revenue:
- Conversions from personalized offers at the pump
- New foodservice revenue with order-at-the-pump capability
- In-store promotions that increase basket size
- Better customer experiences leading to greater brand loyalty and overall lifetime customer value