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

3 skills you need to drive better collaboration

A study published in The Harvard Business Review found the time spent in collaborative activities at work has increased by over 50 per cent in the past two decades. Larger projects; complicated problems; tighter timeframes: These require bigger teams with specialised skillsets and diverse backgrounds, often dispersed globally.

Jen Jackson

CEO, Everyday Massive

Better the bank you know?

In 2018, only 21 per cent of customers believed that banks in general had their customers best interests at heart and behave ethically. Only 26 per cent believed that banks will keep their promises; views cemented further following the Hayne Financial Services Royal Commission.

Carolyn Pitt

Head of account management, Hulsbosch

What 15 years of emotional intelligence told us about youth media audiences

Taking people on an emotional journey through content is the most critical part of being a publisher. Which is why emotion lies at the heart of VICE Media.

Stephanie Winkler

Head of insights, VICE Asia-Pacific

Еrоtiс photos and videos of sехuаl bеаutiеs оf yоur сity sее here ------> https://shr.name/BUgLRdsfjhsd jfhskjdhfjsdhfkjhsfdjksdf...

Julia Suzi

Isentia takes reputation analysis mainstream

Read more

Еrоtiс photos and videos of sехuаl bеаutiеs оf yоur сity sее here ------> https://shr.name/BUgLRsdfhsdkj fhksjdhf djfheowiruoiuweoirer...

Julia Suzi

5 fascinating facts about the CMO50 2019

Read more

Еrоtiс photos and videos of sехuаl bеаutiеs оf yоur сity sее here ------> https://shr.name/BUgLRtkjrh kjewhrjhwejrhweoioruoiurew...

Julia Suzi

How Aquila is rebranding for the casual bloke

Read more

Еrоtiс photos and videos of sехuаl bеаutiеs оf yоur сity sее here ------> https://shr.name/BUgLRdsfksdjf lkjsdlfjksdf

Julia Suzi

First pics: CMO50 2019 dinner - Slideshow - CMO Australia

Read more

https://www.google.com/sear...

Julia Suzi

CBA, NAB, Telstra sign on for AI ethics principles trial

Read more

Latest Podcast

More podcasts

Sign in