Tuesday, July 20, 2010

Valuing Your Customers: Case Study on Murphy USA

One of the last companies I would have imagined having a social media relationship with is my gas station, but after taking a look at what Murphy USA has done I'm embarrassed that I didn't think of this sooner.  Taking cues from larger retailers like Target, Murphy USA, which primarily operates in Wal-Mart parking lots, has launched a suite of social tools to engage customers and provide exclusive deals and promotions, including:
  • an iPhone and Android application using GPS to deliver up to the minute gas prices at your nearest Murphy USA gas station as well as neighboring competitors
  • exclusive coupons and discounts on gas, food and beverages via the application
  • text updates before gas prices go up
  • a check-in promotion through location-aware application Whrrl entering users in a contest to win $50 in free gas
This level of social integration is unheard of from most national retailers and is even more groundbreaking coming from a largely commodity-based service such as gasoline.  That's why the new suite of services is pure genius.  Knowing that it's consumer audience is principally price and location-driven when choosing gasoline, Murphy USA's application provides consumers with the tools to make an educated decision on both.  And since Murphy's is a discount brand and located at arguably one of the most prominent retailers, the brand's gas is almost always the app's recommended choice.

From a branding perspective, Murphy USA's new tools and services increase the brand's engagement with customers in three powerful ways.  First, it increases brand awareness.  Murphy USA may not be a brand many consumers recognize by name, this author included, but as a social media maven and price-conscious consumer I'm more apt to pay attention to the brand now because of the new application's ease of use and superior discounts.  Second, it positions the brand as an entity that values its customers and seeks to provide savings and discounts in an industry that often takes advantage of consumers' need for the product.  Lastly, as a result of the above, it ultimately increases brand loyalty from consumers who have benefited and saved using these services.

So how does this translate to your business?
  • Provide value to your customers where others in your industry do not, whether it be through discounts, time-saving tools, simplifying the shopping process, or an exclusive knowledge base
  • Put the customer before your bottom line, an increase in awareness and loyalty means an increase in sales, which offsets the costs of discounts and promotions
  • Utilize new technology and social media to listen to your audience, discover their needs and communicate your brand's value to them

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