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!

Error: Please check your email address.
Show Comments

Blog Posts

How to leverage the Internet of Things to understand consumer intent

'Intent' is the single largest performance marketing variable. It shapes our search queries, dictates our purchase paths and mediates meaningful interactions with brands regardless of channel, media or content type.

Oliver Smith

Business development, Performics Australia

3 ways customer data can increase online sales conversion

Data has been an increasingly critical factor in improving the efficiency and effectiveness of marketing and business operations.

James Bennett

Chief experience officer, Kalido

Our sharing future is both terrifying and exciting

Discussing the future in a realistic fashion is often a disappointing prospect. For all the talk of hoverboards, jetpacks and lightsabers changing the way we do things, the reality tends to end up being something as mundane as a slightly cheaper way to get around the city.

Jason Dooris

CEO and founder, Atomic 212

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Thanks for the article Jennifer, you raise some interesting points. The supermarket and shopping centre examples particularly struck a c...

Jill Brennan

Why marketers should take note of social robots

Read more

Winning the retail game is really tricky at this point in time. Many retailers have declared themselves as bankrupt. But yes harnessing t...

Vanessa.M.Magers

​Bricks and clicks: Balancing digital and physical to win the retail game

Read more

Latest Podcast

More podcasts

Sign in