A glimpse into the trends shaping the industry
Richard Mitchell
Expert Global Data & Product SME
The European service station sector is undergoing a significant shift, with a 15% decline in the number of stations in the past decade, bringing the current count to around 100,000. Forecasts predict a continued reduction to fewer than 70,000 units by 2050, accompanied by a substantial 50% decrease in total fuel volume sold. This transformation is driven by the predicted end of the internal combustion engine (ICE) era, with a shift to electric vehicles (EV) and hybrid electric vehicles (HEV). The stated goal is 30 million zero-emission vehicles on EU roads by 2030. Demographic shifts and urbanisation further contribute to this evolving landscape, with urban service stations likely remaining stronger than rural stations, which are most at risk.
Reinvention to survive and thrive in a sustainable tomorrow
2050 might sound like a long way away. However, forward-thinking energy companies are recognising the need to act now and address these trends to ensure they cannot just survive but thrive in the future. To successfully reinvent themselves and stay aligned with evolving audience needs, they will strategically consider:
Navigating the landscape of future energy demand
Effectively identifying varying energy needs across different geographies is essential. This involves understanding countries’ infrastructure and regional nuances based on audience profiles and technology adoption speed. This guides the strategic placement of EV/HEV, CNG/LNG, hydrogen charging points, and biofuel distribution.
The Competitive Landscape
Beyond traditional service station rivals, energy companies need to recognise competition from unconventional sources. As a recent example, BT announced plans to convert 60,000 “green boxes” into EV charging points. Home and workplace charging are also on the rise. Success means staying flexible in a changing game.
Customer needs and retail differentiation
Understanding diverse audience needs is becoming a key differentiator, and tailoring offerings to meet local or transient customer expectations is critical. Do people want a sit-down meal and Wi-Fi, quick purchases accompanying buying fuel, or a comprehensive shopping experience? This customer-centric approach defines the retail landscape and fosters differentiation among service stations.
How Customer Intelligence can underpin the “survive and thrive” strategy
From deciphering geographical and population trends to understanding the intricacies of catchment areas, Customer Intelligence equips energy companies with a strategic roadmap. Insight into competitive locations, customer profiles, and retail preferences in these catchment areas becomes invaluable data for making informed decisions.
Customer Intelligence opens the gateway to personalised strategies—be it marketing initiatives, service customisation, loyalty programs, or targeted promotions. As an example, the ability to tailor approaches for prioritised customers, offering fast-track options, payment lanes, and exclusive offers, further enhances customer satisfaction and loyalty.
Crucially, understanding the financial dynamics of each area, from total fuel expenditure to brand-specific transactions, provides a comprehensive view. This aids in gauging customer behaviour and informs decisions about service station partnerships and collaborations. By tapping into transaction data for ancillary expenditure, energy companies can optimise services and facilities, choosing the most fitting brand affiliations for each station.
Customer Intelligence emerges not just as a tool but as the cornerstone for thriving in a rapidly changing industry. By viewing data as a strategic asset, energy companies are not merely surviving; they are poised to thrive by aligning with customer needs, making data-driven decisions, and staying one step ahead in an ever-evolving marketplace.
Acxiom’s Customer Intelligence is used to power the world’s most successful energy brands in understanding the “art of the possible”. Leveraging bespoke data to solve challenges and to drive business performance.
Contact Zac Bray today if you would like Acxiom’s perspectives on how Customer Intelligence can drive the future success of your business.
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Sources:
Population projections in the EU
The future of gas stations
How gas station economics will change in the electric vehicle charging future
Is There a Future for Service Stations?
Service stations, the ‘hubs’ for the transportation of the future