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Do c-stores need to get serious about customer reviews?
There is a perception that convenience stores that are cheap enough or in the right location do not need to worry much about what customers have to say about them — if they have anything to say about them at all. However, new research finds that reputations matter in the convenience store world and argues that responding to online reviews can be as much a benefit to c-stores as as any retailer.
The gas and convenience store sector generates a surprising number of online reviews, according to research by SoCi, as reported by Convenience Store News. The space came in sixth out of 18 industries for the reviews received, beneath categories like department stores, hotels and restaurants.
The research posits a 4.4 percent increase in conversion per every 0.1-star increase on a Google rating. That would result in a 44 percent increase in conversion for a rating that is one full star higher (conversions defined as calls, clickthroughs or requests for directions).
Every ten new reviews boost conversion by 2.8 percent. The research found that retailers that respond to all reviews on Google experience conversions at a frequency 16.4 percent higher than those that do not. The study anticipated an even higher conversion rate for convenience store operators given that so few currently do it.
The importance of c-store responses tracks with a 2018 survey from Uberall about what customers are looking for from retailer interactions. The survey of 1,000 consumers found that 65 percent believe retailers should respond to every review. (Eighteen percent thought they should only answer negative reviews.)
Review responses might improve conversion rates because of the personal connection it establishes between a retailer and a customer. Responding to reviews can also help retailers address negative feedback, possibly diffusing its influence on other customers.
Research by Georgia Tech in 2021 found that angry, negative reviews can dissuade customers from purchasing a given product, despite the same survey finding that customers find angry reviews less helpful than non-angry ones.
Discussion Questions
DISCUSSION QUESTIONS: How influential are customer reviews on a convenience store’s reputation? What should the strategy be for responding to online reviews?
Poll
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Who looks up reviews before pulling into the Quickie Mart for gas, a microwave burrito, and a cherry slushy?
There is a traditional view that because most shoppers use convenience stores for quick, top-up shopping trips there is not much of a need to focus too deeply on customer satisfaction. That attitude represents a lost opportunity to convert customers to more frequent buying and increasing transaction values. It is also becoming a rapidly outdated view as new generations of convenience shops — like Foxtrot — which have very strong levels of customer focus, come to the fore.
There are apps that serve professional drivers that have reviews of c-stores/retail centers showing number of fuel bays, assortment, availability of showers, cleanliness of restrooms, customer service, etc. These apps are widely used so reviews are very important.
I think the issue here is what is meant by managing reviews. Certainly monitoring aggregated data — particularly if it’s on reputable sites — makes sense (akin to how travel guide ratings used to have value). But offering up a response to each and every comment on Yelp, et al, which is what I think the article was advocating, seems of dubious value.
Convenience stores’ value is — convenience! Especially when attached to a gas station off of a highway, people shop there because it is — convenient! So the trashy disgusting bathroom at the gas station off of exit 241? Soon forgotten. The only exception I see here is for convenience stores that serve a neighborhood — then a response to a review may make a difference. Everyone else? Nope.
How many consumers drive to a c-store and first check their Yelp app to see if it is a good place to stop before they run in and grab a cup of coffee? I’m guessing very few. Expectations of service and experience in this segment are low. Location and speed are the critical value propositions. But when a company in this space goes above and beyond, providing great service, great products and/or both — see Wawa, Kwik Trip (WI), and Qwik Trip (OK) to name a couple I have experience with — they will attract business based on the brand’s reputation. Convenience stores should focus on delivering a great and, more importantly, consistent branded experience across their chain and not worry too much about online reviews. They can use bad reviews to track compliance, especially if they spot a trend at a local outlet.
Despite the brevity of most c-store visits, reviews are still very important. The key is to highlight, address and respond to valid criticisms. C-stores suffered a significant loss of business during COVID-19. Focusing on these now returning customers is critical for customer retention.
Convenience stores are the rare exception where customer reviews will not have that much impact. Considering the business model is built on convenience and getting in and out of the store with your products as fast as possible, the bar and expectations on customer service and any sort of experience are low.
However there is an opportunity for convenience store operators to raise the bar, provide better service and more premium products, and capitalize on consumer traffic by providing a better overall experience. Customers on road trips tend to gravitate to those familiar rest stops and gas stations with a better overall experience and products. Convenience matters, but so does service.
C-stores that manage online reviews will attract younger shoppers who seek social proof of quality and trustworthiness.
Consumers expect most retailers to share pricing, promotions, and assortments, as well as ratings and reviews, online. Now it’s c-stores’ time to evolve into digital maturity as the CPG space gets more competitive.
While delighting in-store shoppers is the priority, those conversion stats prove it pays to take online reviews seriously.
When I am driving I-95 to Boston, I am only checking if there is a c-store at Exit 24. And if there is more than one c-store at the exit, I take the one with the easiest on/off ramp.
There will be no secrets for the local c-store, where loyalty is high. For a store manager or franchisee, it would be a worthwhile endeavor to monitor complaints. But I wonder how many complaints are not because of the retailer’s service delivery but the customer’s expectations.
“Conversion defined as calls, clickthroughs or request for directions” — money makers! If you’re reading reviews about convenience stores on a road trip then you aren’t really “road tripping” or in the market for an actual convenience store. However some people visit neighborhood convenience stores regularly so understanding the composition of your customer base would be the second step and may result in strategies to increase purchasing by those loyal customers, like product reviews. The first step is to put out a great product and deliver great service — you are a business after all.
Do customer reviews matter when customers are selecting their c-store? The short answer is, it depends greatly on the store’s location and its offer. Neil is correct that there are brands such as Foxtrot for which it matters a great deal. However in many cases the customer is familiar with the store and its competitors and what they will find and the experience they will have. They don’t need a reply to a Yelp review when deciding which one to go to.
Reviews won’t make a difference in a c-store like they would other retailers. However who wants a bad reputation? Manage the reviews and social media posts, regardless of the impact they might have.
It can be summed up in three words: location, location, location.
Convenience stores need to get serious, not about reviews as much, as in addressing what their customers want, and delivering a good experience to fit each community.
Customers have a choice of retail options, and c-stores are often closer to home, easier to get in and out of than grocery stores. A targeted product mix (narrow or wide), visible cleanliness, a good merchandising path and messaging (differentiation) will create loyalty. Focus on this so the reviews become more feedback driven, and less a fire drill.
With all due respect to Mr. Rollison — the author of the study — I remain skeptical; there are just too many assumptions and imprecise metrics. And what is it that I remain skeptical of? The premise that C-stores need to “actively manage reviews” (which I interpret as responding to [all of] them).
I’m not saying they should be ignored all together — like any other potential source of information, they can be of value — only that not much will be gained or lost by failing to respond to someone who complains that “this store is a rip-off ‘cuz it’s twice as expensive as Walmart.”