How digital is disrupting the fuel retail experience
ACCELERATE THE CUSTOMER JOURNEY
DIGITAL FUEL RETAIL SURVEY 2019
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DISRUPTION IS THE NEW NORMAL
EXAMPLE DISRUPTIONS IN FUEL RETAIL...
YOUR CUSTOMERS WILL NO LONGER
NEED TO BUY FUEL
YOUR CUSTOMERS WILL NO LONGER
OWN AND MAINTAIN A CAR
CONNECTED CARS WILL ENABLE NEW
SERVICES
EXPONENTIAL COMPETITIVE
CONSUMER MARKET
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Are you really connected to your customers?
2019 2021 2024 2027 2030
BLOCKCHAINAIDRONES / ROBOTICSIOT
EXTENDEDREALITY
SO MANY QUESTIONS…
3
Have you identified the capabilities to sustain your business in the future?
Are you willing to invest in these capabilities because you believe in the upside?
What if the only businesses to survive are those offering the customer a great experience?
How will autonomous vehicles impact your business?
What if you will be disrupted by new competitors who will i.e. sell fuel at zero margin?
What if you have not even identified the disruptors of the future for your business yet?
What if you have to act as a true retailer, not a fuel retailer? Will you be able to compete with the “round the corner” shop?
Can you better connect the physical and digital experience for your customer?
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66%OF FUEL RETAILERS BELIEVE AUTOMATION CAN IMPROVE THE CUSTOMER EXPERIENCE …
Do you believe that any of the following could improve the customer experience in your fuel retail site?
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More automation of the fuel retail site
More personalized offers to customers
Enhanced loyalty schemes
Better facilities in the fuel retail site
More hyper-personalized offers to customers
66%
53%
45%
44%
42%
Multiple responses (top five only)
FUEL RETAILERS RECOGNIZE DIGITAL CAN HELP
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TREND 1DISRUPTION IS HERE AND ACCELERATING
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Which of these trends do you believe have the greatest impact on your fuel retail business in the next 3-5 years?*
Rise in electric vehicles usage
Changing consumer demands
Increasing vehicle/engine efficiency
Regulatory changes
Increasing competition
57%
41%
32%
31%
26%
FUEL RETAILERS RECOGNIZE THE IMPACT OF THE DEMAND DISRUPTION COMING FROM ELECTRIC VEHICLES (EVS) AND CHANGING CONSUMER PATTERNS
TREND 1
Multiple responses (top five only)Base = Total sample; n=88
*trends vary by market
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TREND 2COMMITMENT TO DIGITAL INVESTMENTS
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In the next 3-5 years, will your fuel retail business or your company plan to invest in digital technologies?
DIGITAL INVESTMENT WILL INCREASE SIGNIFICANTLY IN THE NEXT THREE TO FIVE YEARS…
TREND 2
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Unique responsesBase = Total sample; n=88
45%
36%
5%3%
2%
8%
Significantly more (20% or greater)
More (1% - 19% more)
The same
Less (1% - 19% less)
Significantly less (20% or greater)
Not investing in digital technology
Don’t know
Key
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…TO BETTER SERVE CUSTOMERS…
TREND 2
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…AND TO IMPROVE SERVICES
If you are planning to invest more in digitalization in the next 3-5 years, which of the following outcomes are you looking to achieve?
Which of the following capabilities and services are you investing in at individual forecourts in the next 3-5 years?
72%Better customer retention
69%Increase in convenience store sales
60%Increase in number of customers
58%Mobile payments
51%Mobile marketing/loyalty platforms
45%Contactless payments
Multiple responses (top three only) Base = Total sample; n=88
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TREND 3ANALYTICS ENHANCES PERFORMANCE
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Which of the following technologies are driving the greatest impact in terms of the performance for your fuel retail business?
Analytics/big data
Automation
Mobility
66%
53%
36%
Multiple responses (top three only)Base = Total sample; n=88Copyright © 2019 Accenture. All rights reserved.
FUEL RETAILERS BELIEVE DIGITAL BRINGS ADVANTAGES AND THEY ACKNOWLEDGE THE VALUE OF DATA ANALYTICS
What kind of advantage (if any) do you believe higher digitalization will have on your fuel retail business?
28%
47%
24%
1%
Great
Large
Average
Small
None
Key
Unique responses
TREND 3
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TREND 4DIGITAL MATURITY IS THE GOAL
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How mature would you rate use of digital technologies overall within your fuel retail business or company?
Mature
Localized
Just getting started
Novice
Don’t know
14%
13%
10%
7%
7%
Aspirational
Semi-mature
40%
28%
FUEL RETAILERS’ ASPIRATIONS FOR DIGITAL ARE HIGH…
TREND 4
Multiple responsesBase = Total sample; n=88
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Do you plan to invest in digital skill training and reskilling programs for your employees at fuel retail sites over the next 3-5 years?
ROLE AUTOMATION, DIGITAL SKILLS AND PARTNERSHIP DEVELOPMENT ARE IN FOCUS
Unique responses
Do you expect any part of the current roles you have in your fuel retail sites to be more automated over the next 3-5 years?
What is your main incentive for you entering into strategic partnership/s?
Base = Total sample; n=88
25%Don’t know
10%No
65%Yes
14%Don’t know
11%No
75%Yes 49%
Access technology/digital innovation
44%Access to new services
40%Better fuel retail business margins
Multiple responses
TREND 4
14
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TREND 5BETTER FOUNDATIONS ARE NEEDED TO REALIZE DIGITAL VALUE
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Which role in your company is primarily responsible for driving the digital strategy and agenda?
…BUT THEY MAY NOT BE ADEQUATELY PREPARED
Unique responsesBase = Total sample; n=88
How would you plan to carry out these digital technology investments?
…AND MOST KNOW THEY CANNOT “GO IT ALONE”
49%Outsourced
31%Via a large IT service provider
27%In-house
Multiple responsesBase = Total sample; n=88
42%C-suite
(CEO, CIO, CFO)
8%CDO
7%Other C-suite
8%Non C-suite
24%No specific person responsible
10%Don’t know
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FUEL RETAILERS RECOGNIZE THE CHALLENGES AHEAD
TREND 5
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THE ROAD AHEAD
17
Fuel retailers may be at the start of their digital journey—but they know where they are headed and are aware of how to future proof their business...
STEPS FOR FUEL RETAILERS TO BUILD BUSINESS READINESS AND PREPARE FOR GREATER DIGITAL DISRUPTION
1 2 3 4Use data to better understand your customers
Develop, create and leverage a partner ecosystem
Drive digital and innovation holistically across the business
Build or access skills and develop key leadership roles to scale digital and earn consumer trust
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FIVE TRENDS ARE DISRUPTING THE FUELS RETAIL LANDSCAPE FASTER THAN EXPECTED
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DISRUPTION IS ACCELERATING: today’s challenges around margins and competition is being complicated by the rise of EV’s and the changing consumer
DIGITAL MATURITY IS THE GOAL:investments in skills training, automation and partnerships are essential to realize digital aspirations
1COMMITMENT TO DIGITAL INVESTMENTS:investments will nearly double to better serve customers and improve services2ANALYTICS ENHANCES PERFORMANCE:digital brings advantages—analytics drives performance improvements3
4
5BETTER FOUNDATIONS NEEDED TO REALIZE DIGITAL VALUE: fuel retailers use outside help for digital to plug gaps but their business model remains immature
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QUESTIONS?
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HOW CAN I GET MORE INFORMATION?
20
NEALE JOHNSON Global Head of Artificial Intelligence for Resources, Accenture
BRIAN GRAYManaging Director Fuel Retail, North America, Accenture
VISITAccenture 2019 Digital Fuel Retail Report
to download a copy
FOLLOW US
Follow us on LinkedIn
@AccentureEnergy #digitalenergy
Explore our Energy Blog
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APPENDIX
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ABOUTTHE SURVEY
22
The Accenture Digital Fuel Retail Survey, undertaken by the survey agency McGuire on behalf of Accenture in collaboration with PetrolPlaza. It was conducted online during the spring and summer of 2019.
The survey included 88 professionals (subscribers and readers of PetrolPlaza) working in the fuel retail sector including:
• NOCs and IOCs and independents
• Fuel retail franchise owners
• Independent fuel retail owners
• Grocery store retailers
• Contractors and consultants to the fuel retail industry
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ABOUT THE SURVEY
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NUMBER OF RETAIL STATIONS
n=88
PRIMARY GEOGRAPHICAREA OF RESPONSIBILITY
NUMBER OF COUNTRIES COVERED
YEARS OF EXPERIENCE
26 1 - 50
12 51 - 100
14 101 - 500
15 501 - 1000
10 1001 - 5000
2 5001 – 10,000
9 More than 10,000
8 Africa
10 Asia Pacific (excluding Australia)
2 Australia/New Zealand
37 Europe (excluding Russia)
8 Latin America
4 Middle East
11 North America
3 Russia and Central Asia
5 Worldwide
58 < 5
15 5 - 10
3 11 - 30
10 31 - 50
2 More than 50
16 Less than 4
12 4 -8
14 9 - 15
26 16 - 25
20 26+ years
FUEL FORECOURTS LOCATION
TITLE
7 Isolated site with no other retail/service businesses close by
30 Up to five retail/service businesses close by
12 Up to 10 retail/service businesses close by
22 Located on a main high street or within a city center
3 Other
14 Don’t know
26 C-level Executive (e.g. CEO, CFO, COO, CTO, CMO, CRO)
21 Executive
27 Mid-level Management
5 Staff
6 Engineer
3 Other
COMPANY TYPE
16 National oil company
13 International oil company
9 Independent oil company
8 Fuel retail franchise owner
10 Independent fuel retailer (non-franchise)
4 Store Retailer
12 Contractor
14 Consultant
2 Other
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