EVgo Charging Stations Offer Retailers New Business Opportunities
By Rosa Davies, Regional Manager, Site Development
Jul 23, 2021
Many retail categories saw buyers shift to online purchasing last year due to COVID, but in-store shopping is coming back. As regulations loosen and shoppers feel safe to return, retail businesses are finding ways to bring back customers to their stores. Read on to learn 4 Good Reasons why they are turning to EVgo charging stations.
#1: People shop where they charge
#2: Charger availability matters to customers
#3: EVgo customers don’t shy away from spending
#4: Potential revenue is too large to ignore
Even during the pandemic, last year saw growth in electric vehicle (EV) sales which shows no signs of slowing down. EV growth continues to accelerate this year as EV purchases have increased 45% through the first quarter of 2021 when compared to the prior year.1 EVgo observed that average daily throughput in May exceeded pre COVID-19 levels from late 2019 and early 2020.
With more consumers making the transition to using electric cars, hosting EV charging stations is one of the best ways for businesses to attract new and old customers alike.
And we can prove it.
Last summer, we asked EVgo customers to tell us about their charging routines. We surveyed customers from over 500 retail charging sites and the message is clear: it pays to be an EVgo site host. Here’s what we found.
#1: People shop where they chargewoman returning to electric vehicle after charging
EVgo drivers enjoy having the ability to do other things while their vehicle is charging. What this means for retail businesses is that charging time at an EVgo public charging station (15-45 minutes depending on the EV) can be shopping time.
The data we collected tells us exactly that. 80% of EVgo customers identified themselves as a “regular shopper,” meaning they often shop at local retailers while their vehicle is charging.
The practice is becoming more common, too. More than 60% of EVgo customers said they shopped during their last charge session.
This is great news for retailers. By offering EV charging stations at commercial properties, retail businesses can bring in more repeat customers and grow their sales.
#2: Charger availability matters to customers
As more people go back to in-store shopping, retailers need to stand out from their competitors.
Becoming an EVgo site host is a proven way to differentiate your business.
We learned that, of the 60% that shopped during their last charge, more than 80% said that the availability of charging stations influenced their decision to shop at a particular location.
And since over 75% of people said that they have flexibility where they shop, hosting EVgo charging stations can quickly make your store a top choice among consumers.
EVgo stations are capable of charging all EV models on the market. A growing number of our stations are also equipped with integrated Tesla connectors, allowing Tesla drivers to charge without the need of an adapter. By partnering with EVgo, site hosts can attract customers from a network that includes Tesla drivers. This opens a significant opportunity because Tesla currently represents as much as 80% of the US EV market.
EVgo also ensures that our stations are shown prominently in Google Maps and PlugShare (the Yelp of EV charging). EVgo stations are also displayed in the Tesla in-vehicle navigation. tesla navigation dashboard
As the nation’s largest network of public fast charging stations, EVgo helps retailers give their customers access to EV charging at popular locations such as grocery stores, department stores, and more. That’s one of the reasons why so many retail businesses turn to EVgo as their preferred partner.
As you think of ways to attract in-store shoppers with unique offerings, consider becoming an EVgo site host.
#3: EVgo customers don’t shy away from spending
Retailers that partner with EVgo gain access to EVgo customers (more than 250,000 and counting!), and our survey suggests these customers spend, on average, $37.94 for general retail to $42.22 for grocery per shopping session. These shoppers were surveyed across a wide variety of retail locations, but given the average charging session was 31 minutes, these shopping trips result in more than $1 spent per minute charging.
The EVgo customer’s average basket size is in line with the average basket size of supermarket customers – which fluctuates in the $40’s2. Based on time spent in the store, this could be even more compelling for retail with smaller average basket sizes, such as convenience stores – which is closer to $7 or $83, since customers might spend more time in the store with a little extra charging time.
Here’s some other industry research on who’s buying electric cars and could charge at EVgo stations at your retail location:
While this demographic will continue to grow and broaden, particularly as hundreds of new EV models – including new electric SUVs and pick-up trucks – hit the market, current EV drivers are certainly an important consumer segment.
The timing is right, too. A recent survey from McKinsey reports that 50% of U.S. consumers intend to splurge on purchases post COVID-19, with high earning Millennials intending to spend the most. The retailers that will benefit the most from this upcoming consumer trend are those that attract people ready to shop to their stores.
EVgo fast charging stations are yet another reason for a consumer to stop and spend time in your store.
#4: Potential revenue is too large to ignoreevgo charging station at a retail location
We did the math to see how much incremental revenue a retailer can gain by adding EVgo fast charger to the property. Hosting an EVgo charging station can generate nearly $120K* in new in-store revenue per year. (This will vary depending on typical basket size (our average of $42.22 used here) and time spent in the store.)
Here’s how we arrived at this figure.
The average EVgo retail site is projected to charge 5,872 sessions within the next few years, based on industry growth projections.
In the survey, 60% of respondents shopped during their last session and 80% of that group said availability of charging influenced their decision to shop at that location. This means 48% of charging sessions resulted in new, incremental retail shopping visits.
Multiply these numbers by the average basket size and you can find the potential annual revenue from the installation of an EVgo fast charging station:
5,872 average annual sessions/site x .48 shopping visits per charging session x $42.22 average in-store spend = $119,000 of potential revenue.
That’s almost $120,000 of potential revenue coming from the installation of an EVgo fast charging station. For stores with larger average basket sizes, like most department stores, the potential revenue impact could be even greater.
And remember — it’s profit. There’s no cost to the retailer for installing an EVgo station, and we support you every step of the way. Find out just how easy it is to deploy an EVgo fast charging station.
As you consider ways to grow revenue this year with minimal cost to your business, using your location to host fast charging stations should be at the top of your list.
Do Even Better with EVgo Advantage™
EVgo Advantage is a proprietary coupon technology that can send EVgo customers exclusive coupons via text for nearby retail locations to incentivize shopping while charging. For a retailer, it helps bring customers from the charger into your store.
A recent consumer report found that 60% of grocery shoppers use coupons to save money on their purchases. Our experience supports this data point as a recent pilot for EVgo Advantage™ showed that the average spend of an EVgo customer shopping at one of our EVgo Advantage partner’s stores was more than 60% higher than EVgo customers that didn’t receive coupons — that’s a basket size increase from $42 to over $70.EVgo Advantage proprietary coupon technology
To learn more about the benefits of EVgo Advantage, email advantage@evgo.com.
How To Expand Your Retail Business with EVgo
Bringing in new customers, giving them more reasons to shop, and increasing how much they spend — these are the reasons why more and more retail businesses are turning to EVgo for electric vehicle (EV) charging.
As EV chargers are in the early stages of deployment, EV charging companies are looking to place chargers in as many places as possible and you won't often see multiple stations at the same intersection. Be a leader and host an EV charging station before a neighboring retail center gets a head start in the race for EV customer loyalty.
Installing EVgo charging stations at your retail location is a business opportunity you shouldn’t overlook. If you’re interested in preparing for the EV revolution with EVgo, visit our charging solutions for retailers to get started!
