By Anila Siraj, EVP of Research and Applied Data Sciences
We've said it time and time again, in order to thrive in today's competitive fuel retail market, you have to take a data-driven approach. If you're not using fuel price data to make decisions about your network, then you might as well be pushing buttons wearing a blindfold. By conducting a comprehensive competitive analysis, fuel retailers will understand:
- Who their true competitors are
- Key differentiators between their sites and their competitors' sites
- The volume potential of each site
- Daily, weekly and monthly demand cycles at each site
- Market volatility
- ... and more!
One of the most important drivers for sensitivity is relative price. It's true that actual price has some effect on sensitivity; when gas is cheaper, people will inevitably drive more. But at a micro-level, consumers are going to make decisions based on the relative prices of different sites. Data collection of competitor prices becomes critical in any competitive market where prices are rapidly changing and the relative position vis-a-vis your competitors is a strong driving force behind your share of demand.