Gas Station Marketing: Essential Strategies and Tips For 2024

While starting a gas station can be a great business venture, the market is extremely competitive. In fact, the American Petroleum Institute reports that there are about 145,000 gas stations in the United States.

Additionally, the average gas station net profit margin is only about 1% to 2%, which can make achieving profitability challenging.

Fortunately, however, with high levels of revenue, you can still make impressive profits in this industry. To drive more sales, it’s essential that you invest in the right marketing and advertising strategies.

So, in this article we’ll explore all the best gas station marketing strategies to differentiate your business and help you attract more customers.

Key takeaways

• Be sure to set KPIs (key performance indicators), like return on ad spend, to help you understand how your marketing strategies are performing.

• Effective gas station marketing requires a combination of in-store, offline, and digital tactics.

• To differentiate your business, analyze your local market and align your unique selling propositions to your customers’ needs.

Gas station marketing best practices

While one-off promotions can work well, effective gas station marketing is about creating long-term value. Before you start implementing new strategies, be sure to consider these best practices:

• Develop Customer-Centric Promotions: Regularly offer fuel discounts, bundled deals on snacks or beverages, and tiered loyalty programs. These not only attract new customers, but also encourage repeat visits and higher in-store spending.

• Leverage Local Connections: Building relationships with your community strengthens your brand. Sponsor local events, partner with nearby businesses for cross-promotions, and offer targeted discounts to local organizations. This approach fosters a loyal customer base.

• Monitor KPIs to Refine Your Strategy: Track critical metrics such as foot traffic, average transaction value, and loyalty program participation. Use this data to adjust your marketing efforts based on customer behavior, ensuring your promotions align with what works.

• Stay Flexible with Market Analysis: Regular market evaluations help you adapt pricing and promotions to the current economic climate, regional competition, and consumer demand. Staying agile ensures your station remains a top choice, even in a saturated market.

Offline gas station marketing strategies

Offline gas station marketing strategies can be effective in reaching local customers and driving foot traffic. By leveraging eye-catching signage, traditional media, and community engagement, your business can stand out and attract more visitors:

• Print and Radio Ads: Traditional methods such as direct mail campaigns, local newspaper ads, and radio spots can still generate traffic, especially in smaller communities. Target these ads to promote special fuel days, local sponsorships, or in-store promotions.

• Maximize Community Involvement: Attend or sponsor local events, support school sports teams, or partner with charitable organizations. Engage in cross-promotions where both you and a partnering business benefit. For example, consider offering coffee deals for customers who show receipts from a nearby restaurant.

• Leverage Roadside Signage: Your signage is a 24/7 marketing tool. Invest in bright, readable signs with rotating offers or promotions. Highlight competitive fuel prices and convenience services like car washes or fresh food offerings.

Digital gas station marketing strategies

Digital marketing strategies offer powerful ways to connect with customers online. By optimizing your online presence and engaging through social media and email, you can attract more customers and keep them coming back with tailored promotions:

• Geotargeting and Geofencing: Use mobile advertising to target drivers as they approach your station. Geofencing allows you to send location-based ads to potential customers’ smartphones, promoting nearby services or fuel discounts.

• Optimize Your Online Presence: Ensure your gas station ranks highly in local search results by optimizing for “near me” queries. Your website should be mobile-friendly, easy to navigate, and include a store locator with updated fuel prices and available services.

• Leverage Social Media and Email: Build a following by regularly posting updates, offers, and promotions on social platforms like Facebook and  Instagram. Email marketing campaigns are effective for keeping loyal customers informed of exclusive deals, rewards, and events.

In-store gas station marketing strategies

You should also be sure to use in-store gas station marketing strategies. These tactics can help you maximize revenue from each customer visit, driving up your average order value and boosting profitability:

• Cross-Sell and Bundle Offers: Create bundled deals that combine fuel with convenience store items like snacks, coffee, or car accessories. For example, offer a coffee and snack combo at a discount when customers fill up on fuel. This incentivizes higher in-store spending while making the visit more convenient for the customer.

• Highlight High-Margin Items and Services: Display impulse-buy products such as snacks, drinks, or premium car accessories near the checkout to encourage last-minute purchases. Additionally, offer premium services like car washes, tire inflation, or oil checks.

• Leverage Loyalty Programs: Encourage larger purchases by offering double points or exclusive rewards on bundled purchases or premium items. Offer new rewards or premium tiers for frequent customers to keep them interested. Push these offers through SMS alerts, app notifications, or in-store signage to ensure they reach your most loyal customers.

• Upsell Premium Fuel and Services: Train staff to recommend higher-margin products, such as premium fuel grades or automotive maintenance items. This small upsell can significantly increase the total revenue per customer visit.

• Implement Seasonal or Event-Based Promotions: Offer discounts and special deals tied to holidays, weather events, or local happenings. If you’re launching a new gas station, consider hosting a grand opening event. 

How much should a gas station spend on marketing?

Creating an effective marketing budget is essential for maximizing the reach and profitability of your gas station. While marketing expenses will vary depending on size, location, and competition, having a structured budget ensures that marketing remains a consistent part of operations. 

While we couldn’t find any marketing spend data specifically for gas stations, Projection Hub reports that the average convenience store spends 2% of total revenue on advertising.

Generally, marketing budgets for gas stations should fall between 2% and 5% of total revenue. Smaller stations may spend on the lower end, while those in competitive or urban areas may need to allocate more to stay visible and competitive.

Overall, this percentage ensures your business has enough resources to maintain brand visibility, promote ongoing offers, and drive customer retention. Here’s a breakdown of how this might look:

• 2% of Revenue: For a gas station generating $2 million in revenue annually, spending 2% on marketing equates to $40,000 per year. This level of spending may focus on basic local advertising, maintaining loyalty programs, and light digital marketing (like social media).

• 5% of Revenue: A station generating the same revenue would spend $100,000 annually at 5%, allowing for a broader marketing strategy. This would cover not only local and digital marketing, but also advanced campaigns such as geofencing, partnerships with other businesses, and more aggressive community engagement.

What is a typical gas station ROAS?

Return on Ad Spend (ROAS) measures the effectiveness of marketing campaigns, indicating how much revenue is generated for every dollar spent on advertising. Generally, a common ROAS benchmark across all industries is 4:1.

For gas stations, a typical ROAS target would range between 3:1 and 5:1. This means for every $1 spent on marketing, the station should aim to generate $3 to $5 in revenue. Here’s a breakdown of different ROAS ratios:

• Low ROAS (1:1 or less): Indicates that marketing efforts are underperforming. In this case, it’s important to reassess your strategies, ensuring you’re properly targeting ads and aligning them with customer behaviors.

• Healthy ROAS (3:1 to 5:1): This is a common benchmark for gas stations, suggesting that for every $1 spent on marketing, you generate $3 to $5 in revenue. A healthy ROAS typically results from a mix of local, digital, and loyalty-focused marketing efforts.

• Exceptional ROAS (6:1 or more): Achieving an ROAS above 6:1 indicates a highly-effective marketing strategy. This could result from well-optimized digital ads, highly-targeted local campaigns, or successful loyalty and cross-selling initiatives that keep customers returning.

How to differentiate your gas station

Lastly, effective positioning is key for setting your gas station apart from competitors and appealing to your target customers. As you consider how to differentiate your business, keep these high-level tactics in mind:

1. Understand Your Market: Conduct a thorough analysis of your local market, including demographics, traffic patterns, and competitor offerings. Identify gaps and opportunities where your gas station can stand out.

2. Define Your Unique Value Proposition (UVP): Your UVP should clearly articulate what makes your gas station different and why customers should choose you. This could be based on price, convenience, unique services, or a combination of factors.

3. Align with Customer Needs: Focus on what your target customers value most—whether it’s lower fuel prices, premium services, or a wide range of convenience store items. Tailor your positioning to meet these needs.

Strategies for differentiating your gas station

After analyzing your local market, you can begin aligning your UVP with customer needs by using the strategies below.

1. Price positioning

Offering competitive pricing and discounts is a proven way to attract cost-conscious customers and build loyalty. Establishing your gas station as the go-to for savings can drive repeat business, especially in price-sensitive markets:

• Competitive Pricing: Position your gas station as the low-cost option by consistently offering competitive fuel prices. Use signage and digital advertising to highlight these savings.

• Discount Programs: Implement loyalty cards or membership programs that provide fuel discounts or cashback on purchases. This encourages repeat business and positions your station as the budget-friendly choice.

2. Selection and service

Providing a wide variety of high-quality products and services can set your gas station apart by making it a convenient, one-stop shop for customers. Offering premium fuel and essential automotive services can increase customer satisfaction and retention:

• Premium Fuel Options: Offer high-quality or premium fuel options that cater to customers looking for enhanced performance or better fuel efficiency.

• Convenience Store Variety: Stock a diverse range of products in your convenience store, including fresh food, beverages, and automotive essentials. A well-curated selection can attract customers who need more than just fuel.

• Additional Services: Provide services such as car washes, oil changes, or tire repairs. These added services can make your gas station a one-stop shop, differentiating you from competitors.

3. Niche focus

Specializing in a unique product or service helps you stand out in a crowded market. As Susan Lee, Commercial Strategy Leader for EY-Parthenon Americas, told U.S. Chamber of Commerce, “Having offerings that consumers care more about means you don’t need to discount as much.”

By catering to specific customer preferences, such as eco-friendly products or local goods, you can attract a loyal base that values these unique offerings:

• Targeted Marketing: Use targeted marketing campaigns to highlight your niche offerings. For example, if you focus on eco-friendly products, market your station as the green choice in your area.

• Specialized Offerings: Develop a niche by specializing in a specific type of product or service, such as organic snacks, local artisanal goods, or eco-friendly car products. This can attract customers who are looking for these unique items.

4. Cross-selling with complementary products

Bundling products and services creates opportunities for customers to spend more during each visit. By cross-promoting items and partnering with other businesses, you can increase sales while offering added convenience and value to your customers:

• Bundled Deals: Create bundles that combine fuel with convenience store items or services. For example, offer a discount on a car wash with every fuel purchase or a meal deal with snacks and drinks at a reduced price.

• In-Store Promotions: Use in-store signage and promotions to encourage customers to buy complementary products. Place high-margin items near the checkout to drive impulse purchases.

• Partnerships: Collaborate with local businesses to offer exclusive promotions or discounts. For instance, partner with a nearby coffee shop to provide discounts on coffee with a fuel purchase, driving traffic to both locations.

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