India, one of the leading countries in energy consumption, has enhanced its focus on the petro retail sector. Conventionally, Fuels such as Petrol and Diesel have been sold in India at fuel stations operated by Oil Marketing Companies (OMC) through their dealers & distributors. In pre-independence and early years of post-independence in India, Fuel was made available as a commodity. The Government and State-run Oil Companies regulated the price of Fuel (PSUs) in the business with hardly any competition. With the phased regulation of prices by the government and the entry of private players in the petro retail sector, competition has increased considerably and, with time, with exposure to the latest technology, has become a service-based business and thus has led to a shift in customer buying behaviour
The last few decades have witnessed significant technological advancement from analogue to digital and from digital to Artificial Intelligence (AI), Big data, and IoT.
Fuel station management, Price of Fuel, and Technology Adoption in services are critical factors that significantly influence retail petrol consumption in India. Other factors, such as fuel station image, service quality, product assortment, and additional benefits, are closely related to consumer preference
In the modern technology era, the Internet of Things (IoT) can be an enabler and promoter of interactive and dynamic services for businesses to play a pivotal role in the next generation
Technology like the usage of IoT & AI in petro retail has impacted enhanced customer experience and enhanced operational efficiency
The advancement in sensing and transmitting technologies, such as RFID, have been adopted in various industries, like architecture, construction and engineering. RFID enables sensing, identifying, counting, locating, measuring, documenting, and transmitting information on a real-time basis helping managers towards efficient project management and decision--making
In the current era, when customers have exposure to social media and technology-based services in the retail sector, they have enhanced expectations for technology-based advancement in products and services. Customer expectation has also evolved with the shift in customers' buying behaviour in petro retailing. While technology adoption is more visible in general retail, petro retail has yet to catch up, mainly in identifying and meeting customers' expectations. A gap is visible in adopting technologies in customer identification, recognition and enriching their buying journey.
Currently, OMCs have an automation system at their fuel stations that provide an array of functionalities and MIS reports to handle the fuel station operation and facilities equipment, including the dealerships/franchisees, to manage the operation and customer satisfaction. The automation system has various customer-centric functionalities like personalized billing, e-bill in the form of SMS, and capturing all the transactions at the fuel station electronically on a real-time basis. The customers have appreciated these functionalities in the industry; however, there is a gap in identifying the customer once they are inside the fuel station to initiate the differentiated offerings. The study with an RFID-based customer identification system, the first in petro retail in India, provides the benefit to the identification of the customer, instant recognition of customers & better service experience.
In our study, one fuel station in Delhi city was selected, and RFID based identification system was provided. The fuel station was monitored for six months for the system's efficiency, impact on the system on forecourt efficiency, customer experience, and sales growth. The study was conducted in the period January- June 2022. Sales volume data was gathered from OMC officials. A survey of 110 customers was performed using the convenience sampling method. The pretested standard survey questionnaires included demographic details of the customer and their experience & satisfaction levels pre and post-implementation of the identification system. The data received through survey were analysed statistically to understand the system's efficacy in the Indian Petro retail context.
The Island Display system consists of two LCD Displays mounted on the Island, visible from both sides of the fueling positions. It allows customers to see the ongoing fueling transaction of their vehicle along with a welcome note with their name. The customer is not required to come out of the car as it will be visible inside it. Besides the transaction view, the LCD can also show advertisements and promotional offerings for the customers
Customers were issued personalized RFID Tags having information about the vehicle number, type of vehicle, the product allowed, owner information, etc., preloaded on it. These Tags were placed at any convenient place on the cars, preferably on the windshield, which was read by using a handheld device (NFC (near field communication) enabled Electronic Data Capture machine (EDC)) by the attendant before the fueling started. Once the tags are recognized, the automation system authenticates and authorizes the vehicle for fueling. The attendant at the fuel stations is provided with a handheld RFID Reader, and each RFID Reader is associated with specific Fueling Positions (BAY). The reader communicates with the fuel station automation Controller (Forecourt controller – FCC) over a wireless protocol.
The RFID-based solution, deployed at the fuel station for our study purpose, has the following key components:
FCC controller for integration of NFC-based reader integration with fuel station automation solution.
Customer Identification Tag writer along with Tag writing software.
NFC-based handheld Terminal (EDC) for reading RFID Tags.
Internet connectivity through existing arrangements at the fuel station
Schematic diagram of the solution and the components is depicted in
Key attributes of the customer identification process considered are (i) quick, (ii) with less manual intervention (iii) error-free (iv) convenient & cost-effective and (v) simple & efficient deployment process. The RFID-based identification process recognizes attributes like customer mobile number, vehicle number, and fuel type fetched from the back-end system. The solution has helped link the fueling transaction with customer detail and send transaction details to the customer through SMS, email, etc. It also helped to provide provisions for extending customized offers, promotions, statements, etc. Step-wise process flow detail is depicted in
Analysis of the respondents about age, gender, educational qualifications, occupation, vehicle use, type of Fuel consumed, and frequency of Fuel (
Sales volume data for an observation period of six-months, which is collected from OMC were analyzed, and it shows a steady increase in the volume month-on-month basis, and a rise of 10.7% has been recorded in six month time.
It has also been observed that 74.5% of the respondents became more satisfied with identifying and displaying welcome messages and SMS confirmations. All these functionalities created a feeling of superior experience and assurance & validation of the quantity of fuelling, thus leading to enhanced satisfaction. (
In order to offer a seamless experience to the customer when they visit fuel stations, there is a dependency on infrastructure at the outlet and the technology-based solution available at the fuel station. RFID technology-based customer identification solution is one step towards providing a better seamless buying experience at the fuel station. The RFID-based solution offers a better experience to the customers. At the same time, it positively impacts all stakeholders, such as fuel stations, customers, and service providers, i.e. OMCs.
Fuel station owners/operators came to know the vehicles/customers visiting the RO and can have targeted communication to select customers since the frequency and value generated by customers are known now. At the same time, since identification & product selection is based on the pre-configured tag on the solution, wrong fueling to the vehicle is also eliminated
Through the RFID-based solution, customers get alert confirmation against fueling transactions and personalized services, including offers & promotions. Since customers are identified through RFID tags, customized consumption statements are available at regular intervals.
The solution enabled service providers to capture customer details for every transaction, making customer insight available for the fuel station. The service provides visibility of customer buying behaviour and has information to design a differentiated value-based offering for the customers. The solution helps the OMCs monitor customers' fueling patterns, thus enabling them to develop an effective approach to building long-lasting relationships.
The data show that fueling volume has increased by 10.6%, and fueling cycle duration has also been substantially reduced. The new digitized and modern look & feel of the fuel stations and intelligent database with the help of RFID captured identification, auto SMS to the customer has increased drastically, helping enhancement the Brand image of the fuel station.
The RFID-based identification system amalgamated with dynamic forecourt display has emerged as a differentiating functionality and will pave the way to bag the crown of leading service providers. The RFID-based solutions have a positive impact in (i) Enhanced Customer Experience. Customers aim to have a smooth fueling experience, including personalization and SMS confirmation, without hiccups at the fuel stations. (ii) Increase in Operation Efficiency by reducing the fueling cycle time, (iii) enhanced brand building, including new customer acquisition and retention, (v) designing better service delivery, and (vi) leading to additional revenue for the service provider. The study showed an increase of 74.5% in customer satisfaction and impacted sales growth by more than 10%. Thus, rapid technological advancements and increasing exposure to digitization have led to increasing adoption of digital technologies, including RFID-based solutions for bridging gaps in service deliveries from customer and provider perspectives. At the same time, there is the scope for technology intervention to enhance customer buying experience and satisfaction in the Indian petro retail context. Adopting RFID-based identification provides a complete view of customer buying behaviour, including buying patterns, customer segments, and type of Fuel or combination. The study is unique and helps bridge the gap in customer identification, recognition and customer satisfaction. Also, it became an enabler for the managers to design service protocols towards superior experience to the customer, bridging gaps in service deliveries and thus business growth.
This Article tried to articulate how RFID-based technology can be helpful in the Fuel retail business as well from a service provider & customer perspective. The study is limited to one fuel station in one city only. The same can be adopted and scaled up by OMCs to enhance customer buying experience and satisfaction across the fueling journey. The comparison of the findings reported herein elucidates the critical usage of RFID technologies to create better service quality and databases for strategic decisions in the Petro retail industry.