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

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

How to create profitable pricing

How do we price goods and services? As business leaders, we have asked ourselves this question since the history of trading.

Lee Naylor

Managing partner, The Leading Edge

Sport and sponsorship: The value of event sponsorship

Australia’s cricketers captured the nation’s attention during their recent run to the semi-final of the ICC Men’s World Cup. While the tournament ultimately ended in defeat, for over a month it provoked a sense of belonging, hope and empowerment for millions of people across Australia. Cricket, and sport in general, has a near-unique ability to empower individuals, irrelevant of their background, demographic or nationality.

Nikhil Arora

Vice-president and managing director, GoDaddy India

I should check these guidelines. I think it's important for me. Thanks for the info!

Juana Morales

IAB releases social media comment moderation guidelines

Read more

I didn't know about that. Thanks!

Jamison Herrmann

Twitter 'recap' helps you catch up with missed tweets

Read more

😂😂😂😂😂😂😂😂

Max Polding

What it takes to turnaround an iconic Australian brand

Read more

I spend a lot of time in my professional life as a provider of marketing solutions trying to persuade customers that CX, UX, UI and Custo...

sketharaman

Gartner VP: Why CMOs and CIOs must band together to make CX a discipline

Read more

I live the best deals at LA Police Gear.

Tyrus Rechs

6 Ways to ramp up Social Media to Your Web Design

Read more

Latest Podcast

More podcasts

Sign in