Virgin to offer customer loyalty program points as petrol currency

Under the new arrangement Velocity frequent flyers can use their points to purchase petrol and in-store items at service stations nationally

Virgin Velocity points will shortly become currency at BP service stations after the pair struck a deal to allow customers to use points for petrol and store items.

Under the Pay with Points scheme rolling out from next week, Velocity Frequent Flyer members will be able to redeem between $10 and $60 off eligible fuel and store purchases at participating BP service stations nationally. The two companies claim it’s the first time an Australian airline loyalty platform has allowed customers to use points in a retail store and will help put money back into the pockets of consumers.

In a statement, Virgin and BP noted the average household expenditure on fuel is about $60 per week. BP general manager of marketing and offer development, Adam Arnold, said the new offer will help Australians rethink how they refuel.

“The cost of fuel is a significant household expense, and we want to help reduce the impact on household budgets by opening up more ways to pay, thanks to our partnership with Velocity Frequent Flyer,” he said.

Velocity Frequent Flyer CEO, Karl Schuster, labelled the offer a “game-changer”. Consumers will need to create a 4-digit pin first online, then swipe their card at the point of purchase prior to payment to redeem their points. The company said $10 spent is equal to 1667 Velocity points.

“Velocity is committed to rewarding our members on their everyday expenditure, and this initiative with BP takes that one step further,” Schuster said. “We know some members drive much more than they fly, so this gives them an alternative way to use their points that will ease the pressure on their wallet.”

According to Virgin, nearly one million members have swiped their loyalty card at BP since the pair launched their partnership in April last year. Under the arrangement, consumers earn two points per litre on petrol purchases and two points per dollar spent on in-store products.

According to Virgin’s half-year results to 31 December 2015, the Velocity customer loyalty program notched up revenue of $154.8 million for the six months, a 26.4 per cent improvement year-on-year. Membership also grew by an average of 2600 members a day to 5.7 million over the same period and is now sitting at more than 6 million.

The company said Velocity was set to meet its earnings growth targets of at least 15 per cent in underlying EBIT by the end of the 2016 financial year.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why defining brand strategy is vital to capitalising on quick wins

Big brands were once protected from small brands by high barriers to entry. Big brands had the resources to employ big agencies, to crack big ideas and to invest in big campaigns. They had the luxury of time to debate strategies and work on long-term innovation pipelines. Retailers used to partner with big brands.

Troy McKinnna

Co-founder, Agents of Spring, Calm & Stormy

3 ways to leverage the talents of your team to avoid disruption

​According to the World Economic Forum in its most recent The Future of Jobs report, the most important skills for the future are not technical, task-oriented skills, but higher-order skills such as creativity, social influence, active learning, and analytical thinking.

Gihan Perera

Futurist, leadership consultant

CMOs, it’s time to stop squandering customer attention

Businesses continue to highly value the attention they buy through paid media, yet at the same time, many continue to disregard and under-value opportunities to connect with customers using their owned media.

Well written Vanessa!! Agreed with your view that human experience is marketing's next frontier. Those businesses who are focused on the ...

Clyde Griffith

Forget customer experience, human experience is marketing's next frontier

Read more

Great tips for tops skills need to develop and stay competitive

Nick

The top skills needed to stay competitive in a rapidly changing workforce

Read more

The popularity of loyalty programs is diminishing, though I'd say it is because customers are savvy enough to recognise when a loyalty pr...

Heather

It’s time for marketers to rethink their approach to ‘loyalty’

Read more

Thanks Nadia for sharing this blog. It has really useful and amazing information about Salesforce Commerce Cloud and digital engagement w...

Holly Smith

Adidas taps data and technology smarts to build personalised digital engagement with consumers

Read more

clearly someone who's jealous and only comments from the safety of being behind their keyboard

Peter Sibson

The purpose of purpose - Brand science - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in