Chevron, Safeway Expand Loyalty Partnership

Chevron_Safeway-Loyalty-Program-Photo2Grocery purchases lead to fuel discounts for customers in three new markets.

By Erin Rigik, Associate Editor.

To capture an increased number of fuel customers, Chevron and Safeway have expanded their joint loyalty program to Las Vegas, Northern California and Hawaii.  
Customers in these regions can now earn gas rewards when they shop using their Safeway Club Card or Vons ClubCard at Vons and Safeway stores, and can redeem these rewards for up to 20 cents off per gallon when filling up at participating Chevron and Texaco branded locations.

The program first debuted in Southern California in October 2012.

With 229 Safeway stores and well over 650 Chevron and Texaco-branded stations in Northern California, shopping and saving at the pump is now even more convenient for loyalty customers.

“We have more than 98% of our retailers and marketers participating, which is a phenomenal number. We’re completing phase two, which will put us at more than 1,800 service stations participating in the program,” said Cary Knuth, Chevron’s general manager of Americas products for marketing, sales and services. “The rollout has gone really well. We have been able to expand at a more rapid rate than we thought. We’re finding customers in Northern California are adapting faster than those in Southern California because we now have a mature loyalty program customers know.”

Expanded Footprint
The decision to add Hawaii to the rollout was an easy one. “We had the No. 1 market share in Hawaii on a retail basis, so for us it was a natural fit,” Knuth said. “We also have one of the only two refineries on the island and a great legacy brand position there. Plus, Safeway has a strong brand presence there as well.”

Station owners have reacted positively to the loyalty program, which has helped to drive traffic to their stores. “Many of our retailers and marketers are right across the street or in the same lot as Safeway, and they’ve had these people parking in or around their stations for years,” Knuth said. “Now they have a reason to stop and fill up. Operators feel it gives them an edge in a fairly competitive market, and in a down economy it’s another way to differentiate themselves from the competition.”

Customers have also adapted quickly to the new program. For every $1 of groceries they purchase at Safeway, they earn a point, and for every $100 they get 10 cents off per gallon at a participating Chevron or Texaco. If a customer has enough points, they can get up to 20 cents off per gallon up to 25 gallons per transaction.

Since it has received such a positive consumer response, Chevron plans to continue expanding the scope of the loyalty partnership with Safeway. “We’re going to continue to look to expand as it makes sense,” Knuth said. “The relationship continues to grow, and we will continue to bring value to consumers and help them gain discounts at the pump.”

Racking Up Reward Points
Reward Points for redemption at Chevron stations can be earned by
shopping at Safeway stores in the following ways:
• For every $1 spent on qualifying grocery purchases, customers receive one point.
• By purchasing qualifying gift cards, shoppers receive two points per $1 spent.
• For qualifying purchases made at the pharmacy, customers receive one point for every $1 of out-of-pocket cost, including co-pays.

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