| One of the central themes in the National Association of Convenience Stores study, "The Convenience Industry vs. Hypermarkets: Strategies for Competition," is that convenience store operators need to differentiate their stores from hypermarket competitors to create more loyal customers and engage them in more profitable buying habits. Dan Willie, owner of Twin Falls, Idaho-based Oasis Stop 'N Go, which operates 10 convenience stores as well as truck stops, found a way to fight Costco. Willie rolled out KickBack Points in October 2000, less than a year after deciding a proprietary loyalty program was the way to go.
Participating merchants in the program, including dry cleaners, hardware stores and more, set the point accrual rate, and earned points are redeemed just like cash, at a rate of a penny per point. KickBack Points will be 100 percent real-time early this year, allowing customers to receive a customized receipt with targeted marketing and a current points value at the POS. Customers will also be able to redeem points instantly.
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