Fueling Customer Loyalty For Your Business With Lessons Learned From The Oil & Gas Sector with Suri Singh

Andy Splichal:

Welcome to the Make Each Click Count podcast, where we dive into strategies and insights that drive success in e commerce and the digital marketing world. Today, we are joined by Suri Singh, the head of loyalty at Emirates national oil Company in Dubai. Suri has been instrumental in launching the groundbreaking yes Rewards program, the first fuel rewards program in the UAE. This innovative program has not only set a new standard for customer engagement, but also won the best rewards program in the government sector in the CX and Loyalty Awards, m e n a with over 15 years of experience spanning banking, advertising, fashion in the oil and gas industry, Suri has a unique perspective on keeping customers interactions simple while delivering tailored experiences that drive loyalty and success. Today you'll be sharing the expertise on the evolution of loyalty programs, the role of AI and data driven automation in enhancing customer experiences, and the importance of strategic partnerships. Welcome to the show, Suri.

Suri Singh:

Thank you so much. Thanks for having me.

Andy Splichal:

Well, to start, I mean, you're currently in the Dubai working in the oil and gas industry. Why come on a podcast geared toward e commerce business owners and marketing professionals?

Suri Singh:

Well, good question, Nadi. And I guess today with rewards, it's all about the customer. If you look at the program that we run, we're an app based program with partners that are across segments. I mean, we are looking at partners in the travel industry. You could have an airline as your partner, a probable e commerce partner, and the fact that if you are looking at driving business and engagement with users across all of your gamut of partnerships, you are, let's say, trading the e commerce space very, very closely. You've got a digital footprint, customers have a digital footprint and that's what we leverage while, you know, our core business is brick and mortar, but that's not how our customers live anymore, right? So they operate in, I mean, they interact with us in the brick and mortar side of the business when it comes to fueling their cars in Dubai. But having said that, if you are buying a flight ticket or let's say you are liaising with us, with any of our other partnerships, I think it's going to be on your phone or on the websites. And the only way for us to drive business and growth and engagement is digitally.

Suri Singh:

And I think that kind of gets us into the, let's say, mobile or ecommerce space very, very closely now.

Andy Splichal:

So tell us about the inspiration and vision behind your yes. Rewards program and how it is evolved over time.

Suri Singh:

So, I mean, yes, started out as one of the core functions for allocating and connecting customers, let's say customer data. That was the crux and core behind it. And of course, having a reward element to it. It was a way of us saying thank you to our customers for coming and fueling with us. Also, one of the key effects of the oil industry is the fact that you promote a lot of non fuel spend. So you have a number of your customers who come in, fill gas with you, but at the same time, you are looking at driving them into the non fuel side of the business. And it could be your convenience store or it could be, you know, your automotive services, like your car washes and oil change and so on and so forth. Now, one of the ways that you would do this, or one of the key ways, only ways that you can do this is if you have customer data.

Suri Singh:

So you get relevant offers out to them for them to actually step out of the car and walk into your convenience store or avail any of the other services that you offer. And that's where the concept of loyalty came about. And it started out as a earn and burn standard program, giving away points to customers, which in fact, we still do. But it's moved on from there to becoming a full fledged program that has a bank card of its own, is looking at travel space very, very closely and many other such sectors where we can engage our customers and kind of create a space where we were able to add value to our customers lives. And that's exactly where we started out. And we've kind of come a long way from being a simple earn and burn program.

Andy Splichal:

So, I mean, for e commerce companies, I think you can take a lot out of there because what you're really doing is you're using the data and cross selling other products.

Suri Singh:

Yes, you can say that. So, I mean, you're cross selling relevant products. I put it this way. Right? So, I mean, if you're an e commerce company today, one of the key things that you're looking at is customer data, right? You are using this data, you're segmenting this data and pushing out valid, relevant offers to these customers so that you can engage with them and create spends and, of course, manage to create a profitable business model. And the fact that we, as a very core necessity of consumers in Dubai, we of course sit on tons of very relevant data and this then becomes, it's a two way journey. So one, of course, we are very, very relevant to e commerce players in the market, but other than that, we also want to stay as relevant to our customers by giving them what they like.

Andy Splichal:

So I think I read that you were the first one to launch a fuel rewards program in the United Emirates. Is that correct?

Suri Singh:

So we were actually very closely, us and one of our competitors, we were literally months of off each other. And there was the sudden spree where everybody suddenly realized that even in a business like ours, which is petrol, and though it was regulated, we've got regulated pricing and there are many, and it's a commodity. How do you create that difference? And how do you give value to your customers? And what is it that you bring to the table where you ensure that they come and fuel with you and not anybody else? So that's how. I mean, that's exactly how we started out. And then suddenly, now, if you look at the market today, you've got three big players in the market, all having a rewards program, and you've got a fuel delivery company, which also is rewarding consumers back. But I would say less loyalty, more in the form of cashbacks. Today, the landscape's completely changed and loyalty has become core to, I think, each of the entities in this particular space.

Andy Splichal:

Yeah, I mean, you made a great point where you're a commodity, and a lot of e commerce companies sell commodities. So trying to distinguish or given rewards. I'm curious, how successful has the reward program that you've installed been in establishing loyalty with your customers?

Suri Singh:

So, I mean, you know, not because it's our own program, but it's been very, very successful. So from, let's say, a value back perspective to the customer. You know, we've heard consumers say this, and this is, I think, also market knowledge that we've got the biggest reward back to the consumer compared to anybody else. And that's keeping in mind that petrol as a business has lower margins. We've ensured that our consumers keep coming back. And how do we do that? One, of course, it's not just about fueling, but the fact that we run a reward scheme in the convenience store. And if I was to give you some percentage numbers. I mean, if you look at the loyalty spends versus the customers who are not on the program, I mean, I can confidently say today we have almost a 30% increase in the basket size and value with customers who are on the program.

Suri Singh:

And those numbers today have made a considerable dent in the patterns that we see and the spends that we see in our convenience store. So we are no more a program that's just about earning a small sum of points. But at the end of the day, we are a PNL that is considerably impacting the business overall and the fact that we run our own profit center today and we also kind of make money from third party income. We are an important part of the business overall.

Andy Splichal:

What are, you had mentioned total value of customers, but what are the metrics that you really concentrate on to monitor your rewards programs going?

Suri Singh:

Well, I think for any loyalty manager, I think one of the key metrics is lifetime value because again, loyalty is long term. It's not short lived. You've got various metrics that you could be measuring in terms of transaction value and frequency and so on and so forth. And there are a number of such metrics that people talk about. But, you know, as a, as a loyalty program which talks about how long do you retain a customer and how long, how many times do they come back to you versus, you know, not any other brand. One of the key metrics at least we personally follow is customer lifetime value. And which is, you know, it's a rolling figure. It's kind of measures your, let's say, customer stickiness quotient to our brand versus anybody else.

Suri Singh:

And lifetime value, I think, is a very, very relevant metric not only for, as a loyalty program, but I guess in any business in the e commerce space or even in the brick and mortar space. Yeah.

Andy Splichal:

And I'm sure that once customers are loyal to you, then you partnering with somebody else. I mean, you're almost referring them to somebody else through these partnerships. And it's going to mean more because they already trust your brand. How have you gone about and collaborated with other companies and kind of used that to help grow your bottom line?

Suri Singh:

Well, I think, let me give you an example. Right. I mean, there are a number of ways that we can do that and there are a couple of big partnerships that we've got underway. But let's, let me start with the first thing that we started out was a co branded credit card. And what it was was a fuel rewards card which would allow customers to double dip. And that simply allows them to earn es reward points for any transaction that they make within the EnOC network, but also outside of the network. Right. So whenever you shop, you spend across UAE or internationally based on your spend value, the bank gives you that cashback, which is in the form of our currency, and that can then be converted directly for fueling or your spends in the gas station.

Suri Singh:

So kind of your value proposition is very, very strong. Our core brand, as of last week, has been the best core brand product of 2024, which was a big testament in the kind of product that we've got in the market. It gives you up to 15% off on your fueling spends, which is huge from a customer perspective. You save a lot when you use our partners as well. And at the same time, you offset that with your living costs, let's say, I mean, your everyday costs of fueling a car. If you've got a travel partner, you could use your points to unlock deals, book a hotel or buy an airline ticket. And if you see Dubai is an expat based city, primarily you've got, let's say, a smaller percentage of natives, of locals who live here. But you've got a lot of expat population working here.

Suri Singh:

So everybody travels. They're either traveling back home or traveling on leisure. And the fact that if tomorrow you've got a travel partnership which allows you to do that and rewards you for doing that, then you've got a lot more value that you're creating for your customers.

Andy Splichal:

How careful do you have to be with the partners that you choose? I mean, do you vet them to make sure that they have a certain level of customer satisfaction? Where somebody approaches you, how do you do your due diligence?

Suri Singh:

There are a number of factors, Andy, that you have to look at. One, of course, is the brand itself. Does the brand, what kind of brand values do you have? What is it that you're offering customers and what do you stand for? We partner with anybody and everybody coming on the table. Of course, there are many, many things that are looked at. One of the key things would also be commercial metrics. Makes sense when you do. And what kind of partnership is it? Is it a point issuance partnership or are you doing a points exchange? What is the value that you're exchanging your currency versus your partner's currency for? And what level of engagement would you see with that prospective partner now? I mean, at the end of the day, it may or may not work. There are always wins and there are losses at the same time.

Suri Singh:

But you have to kind of evaluate, evaluate the brand, evaluate the commercial deals and look at how engaging would it be for our members to get such a partner on board. And so we've got various metrics that we look at and then at the end of the day, you need to also look at how you both engage customers to kind of interact with both the brands.

Andy Splichal:

Now, you've emphasized before the importance of keeping interaction simple. So how do you balance simplicity with the need to offer personalized and engaging experiences?

Suri Singh:

Well, simplicity and engaging experiences I think come hand in hand. It's just when I talk to Andy as an individual consumer and I'm relevant to Andy's needs versus when I'm talking to the entire customer base, you know, what I would call is spraying and praying. You know, you've got so many brands today sending out offers. Very recently I received enough for a kid's brand. Now I guess they probably emailed the database or probably acquired some data from an aggregator, but I don't have children. So now for me it's irrelevant. Communication versus when you actually understand your customers spends needs and the brands they interact with. And you, let's say, tailor make offers which are relevant to them.

Suri Singh:

While an offer can be simple, execution can also be simply execution. Pardon my execution needs to be simply done with the fact that your customer should get an offer personalized and relevant to him. So I mean, it's not that complicated. At the end of the day, you need to segment them based on their choices and not bombard customers with offers that may or may not be relevant.

Andy Splichal:

Yeah, I know. A segmenting definitely is important regardless of industry. How often do you market as a company the rewards program? I mean, are you sending offers and email in snail mail? I mean, how are you reaching out other than point of contact?

Suri Singh:

Well, I guess, you know, email marketing has been one of the key channels, but we use the mobile app a lot more now. Again, you know, we are an app based program, so that ensures that our customers get a notification or have the offer for them on the application whenever they log in. We've got a very sorted email cadence that we follow wherein we kind of ensure that all the offers from our side to our customers for the month are presented to them in one consolidated email, let's say the first week of every month. You know, so it's relevant, it's got the fuel price for that month, it's got what we've got going on in the convenience store, what we've got going on in the automotive business. Is there something new that we want to talk about from a program perspective? And that ensures a high open rates, very high deliverability, because we're not spamming customers and they're not blocking us. So our headers stay relevant. And at the same time we get solid click throughs to the offers that are relevant to every customer. So, I mean, we don't bombard our customers, Andy, with offers left, right and center.

Suri Singh:

We ensure that there is a limit to how many emails that are sent and we use alternate channels. So, I mean, it could be an SMS is one channel, which is still fairly strong, but push notifications have worked pretty well for us.

Andy Splichal:

Now, you had mentioned that your two competitors also have loyalty systems in place, rewards points. How do you ensure that your system is competing, keeps up to date. You're not losing market share to one of your competitors who's doing the same thing.

Suri Singh:

I think innovation, innovation, innovation and being relevant. I think we're in the first 1st in the market for many, for many, many years for the kinds of offers we run. We ensure that in terms of cash back and value, we remain very, very competitive. I mean, of course it's not easy at the moment because when you're talking to a limited set of customers and they've got options outside, you have to keep innovating. So whether it's the offers that we come up with in the network or even the function, although even the functions that we have on the app. So I mean, today we've got subscriptions that we've kicked off with, we're pretty soon kicking off with automotive subscriptions, whether it's your car wash or your oil change and things like that. So I mean, when you start being relevant to the consumer and making his life easy and your loyalty program and the app that you provide and the channel basically is simple to use, but at the same time has enough and more on it that your consumers engaged and finds it relevant, I think half the battles won there as far as offers are concerned. Today, it's a slippery slope.

Suri Singh:

If you're giving a 50%, it can be replicated the day after by your competitors. At the end of the day, you need to protect your margins as well, but ensure that whatever you do implement, you implement it the right way. And I guess that's what we do. And I mean, we have seen continuous growth not only in our existing and current users, but also pretty high engagement numbers, which are a healthy sign for the program.

Andy Splichal:

How important is customer feedback been in developing the program and even an ongoing program with your innovation?

Suri Singh:

Very, very important. I mean, you know, today it is in the digital space. It's a two way story. So, I mean, if your customers don't like something, they will let you know, and you've got to kind of adapt to it. So it could be, you know, certain experiences that they like in the season, let's say, in the convenience store, or maybe they've had an experience that they don't enjoy while interacting with you. It could be a small thing like a call center, or it could be the experience that they've had at a gas station. And consumers today are very aware. They are digitally savvy.

Suri Singh:

They are aware of how the loyalty space in the market operates as well. So it's important we take feedback seriously. We've got a 24/7 call center that runs exclusively for the program. And we hear back a lot from consumers, and we analyze a lot of the data as well as to seeing what are the challenges consumers are facing even. There could be times when a customer may not say anything to you, but there's a complaint that's come in, and the underlying reason of that complaint could be something completely different. So we ensure that we kind of take note of all of these things and kind of ensure that we not only look at short term resolutions, but also pick key points from what we've learned from our customers to build it into the long term strategy of the program.

Andy Splichal:

So where do you see the program and customer loyalty programs in general going from here?

Suri Singh:

I think this is the best time for programs. I think nowhere have I seen loyalty programs suddenly pick up so much speed and relevance like I have over here. I mean, in the states, it was, they started out way, many years ahead, but, you know, with, with technology playing such a key role in our lives today and data being the new goal, I mean, that's what I like to call it. Data is the new oil. It is what, the loyalty programs have become one of the key channels for customer data. And I think so many organizations today are launching reward programs. And you know why? Because they understand that you no longer can be, you know, treating the customer as one size fits all. But you need to personalize, you need to be relevant, you need to reward, you need to engage.

Suri Singh:

And I think each one of these things somewhere touches loyalty. And I think this is, it's a very, very healthy, good sign for rewards program, reward programs. And I think there's a lot more to come. I mean, especially when you look at the AI and the machine learning space, I think there is a huge impact that this space is going to play in, let's say, artificial intelligence is going to play in the loyalty industry.

Andy Splichal:

Well, this has been great. Is there anything else you would like to add before we wrap it up today?

Suri Singh:

Well, I think, you know, I think as far as what programs, brick and mortar programs are concerned today, there is. It's a very thin line between e commerce and brick and mortar. And I think the whole world today is talking about omnichannel. So it is critical for reward programs to think of the customer as a single customer, irrespective of what the channel may be.

Andy Splichal:

I like that. Yeah, no, that's a great final word, Suri. Well, thanks for joining us today.

Suri Singh:

Thanks. Thanks so much for having me, Andy.

Andy Splichal:

For listeners, remember, if you like this episode, please go to Apple Podcast and leave us an honest review. And if you're looking for more information or to connect with Suri, his contact information will be below in the show notes. In addition, if you're looking for more information on growing your business, check out our podcast Resource center, available at podcast Dot make each clickCount.com we have compiled all of our different past guests by show topic and include each of the contact information in case you would like more information, any of the subjects discussed during previous episodes. Well, that's it for today. Remember to stay safe, keep healthy and happy. Marketing talk to you in the next episode.