Executive Summary of the 2011 Stiel Direct Fleet Credit Card Study.

1. 2011 TRENDS IN
FLEET CARD PAYMENT SOLUTIONS
Dan Stiel
Stiel Direct LLC

2. Embracing the Payment Solution to Build Market Share
TODAY’S FLEET MARKETER’S
CHALLENGE
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3. Our Goal Today –
Present You the Most Relevant Information & Trends in Fleet Cards
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4. STIEL DIRECT’S QUALIFICATIONS
 Principals experienced working with all major fleet card issuers
 Fuelman, WEX, Voyager, Visa Fleet, others
 Over 25 years individual experience in fleet and commercial credit card
marketing and product development
 Bank of America, First Interstate Bank/Wells Fargo, Visa USA, Citibank, Chase, others
 Formerly Director of Payment Systems for Tosco & Circle K
 In-depth market research capabilities
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5. STIEL DIRECT’S FLEET PAYMENT STUDY
 Focused on entities that owns or operates from 5 to 300,000 vehicles
for business purposes on public roads during 4th Quarter 2010
 Across a broad scope of private & public sector fleet operators
throughout the United States
 Designed to measure fleet payment preferences, and the opportunity
for fleet merchants to use the payment proposition to build market
share
 Help clients define the impact of changing payment habits and
preferences of fleet operators across the United States
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6. TYPES OF FLEET VEHICLES STUDIED
 Fleets operating automobiles, motorcycles, light-duty trucks, and heavy-
duty trucks
 Fueled with gasoline, diesel, or an alternative fuels, such as propane,
natural gas, or electricity
 Fleet vehicles that refuel and obtain maintenance services at a retail
service stations, truck stops, cardlocks, and private on-site fueling
facilities
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7. RESEARCH & INFORMATION SOURCES
 Stiel Direct’s proprietary research methodology weighted against industry
demographics
 Telephone survey to 200 fleet managers
 Mail-in survey to 3,500 small business owners
 Focus Group panels in three cities
 United States Department of Energy
 United States Department of Transportation
 Syndicated fleet card studies
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8. A DEFINITION OF
IMPORTANT TERMS
Fleet Industry Terminology

9. ENHANCED FLEET DATA
 Includes all of the following:
 Odometer readings
 Product purchase detail - products/grades, and quantity/gallons purchased
 Driver and/or vehicle IDs
 Fuel Tax information
 Financial & Transaction detail - date, time, location, spending, etc.
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10. A HISTORY OF FLEET CARDS
 Government agencies and private enterprise have used oil company
credit cards and proprietary on-account billing systems since at least
the 1930s
 Enhanced fleet cards introduced in 1980s & 1990s to fight fraud, misuse,
and provide improved management reporting
 Fuelman, Wright Express, and many others introduced their own brands of fleet
cards
 Oil Companies improved offerings
 Banks and Card Networks have offered specialized purchasing cards for fleet
operators
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11. THE VALUE OF ENHANCED DATA
 The basis for flexible reporting tools - exception, tracking, and control
reports
 Used to monitor vehicles and driver performance:
 Evaluate expense efficiency
 Monitor policy compliance
 Analyze purchasing patterns
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12. TRENDS IN FLEET PAYMENTS
 Among all fleets studied, use of cards is growing 15% annually
 42% use Enhanced data fuel cards
 27% use Basic oil company proprietary cards
 20% to 35% use Bank cards, ATM/debit cards, and T&E/Corporate credit cards
 10% to 20% still use cash or direct billing arrangements with local fuel
marketers/distributors, but is declining in favor of fleet cards
Note: Numbers total more than 100% due to multiple payment options used.
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13. GOVERNMENT PAYMENT SOLUTIONS
 Use of fleet cards is a major initiative for Federal, State, and Local Agencies
 Governments seeking enhanced solutions for managing fleet expenses - Fleet Cards
considered key component of fuel and fleet expense management
 Key Strategic Initiative for many fleet suppliers
 Government agencies decision making varies by agency, and was included in study
database
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14. FLEET PAYMENT SELECTION METRICS
Attribute Importance Fleet
Rating Cards
 Consistent Pricing High Yes
 No Fees High Varies
 Discount Pricing Opportunity High Yes
 Fraud Protection High Yes
 Wide Site Acceptance High Yes
 Detailed Reporting Medium Yes
 Maintenance Reporting Medium Yes
 Card-less Transponders Medium Future
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15. HOW DRIVERS USE FLEET CARDS
 Off-site fueling
 Fuel Only (85%)
 Both Fuel & Maintenance (10%)
 Fuel, Maintenance, Business Expenses (3%)
 Maintenance Only (2%)
 On-site fueling & maintenance facilities
 Various accounting practices, but little fleet card usage
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16. THE MARKET FOR GENERAL PURPOSE
FLEET CARD PROGRAMS
 Less than 5% of fleet managers are comfortable with their vehicle
operators having the ability to use cards to conduct transactions
beyond vehicle expenses
 Overnight vehicle travelers, including long-haul truckers and sales people
 Executives and traveling sales personnel driving company cars
 Limited benefits for the vast majority of fleet managers
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17. TRENDS IMPACTING FLEET CARDS
 Increased use of enhanced data-capture fleet cards for all variable fleet
expenses
 Fuel, maintenance, repairs, vehicle appearance/care, replacement vehicle rental
 Increased use of exception reporting based on fleet credit card
transaction data
 Improving Web-based card/driver account management control systems
and reporting
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18. TRENDS IMPACTING FLEET CARDS
 Integration of fleet variable expense management into corporate
purchasing/accounting legacy systems
 Wireless and transponder technology will improve vehicle data
gathering, reporting, and analysis
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19. TRENDS WHERE FLEETS PURCHASE FUEL
 Among fleet operators of all types, fuel is purchased from over 195,000
fueling sites
 Retail service stations: 75%
 Cardlocks & truck stops: 17%
 On-site fueling facilities: 8%
 On-site fueling is continues to be viable to many operators, but is
declining rapidly
 Fleet Cards can provide enhanced control and accounting advantages when used at
on-site fueling facilities
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20. FLEET CARD REPORTING TRENDS
 Fleet managers increasingly want reports that are comprehensible,
comprehensive, useful, flexible, and actionable
 Most fleet managers find sophisticated reporting helps run fleets more
efficiently
 Maintenance reporting is growing in importance as fleet managers
continue to become comfortable with enhanced reporting capabilities
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21. EXCEPTION REPORTING TRENDS
 Fleet Card data is increasingly used to identify exceptions to fleet
policies, practices, and budgets
 The ability to view exceptions by vehicle and drivers allows greater efficiency and
flexibility in managing a fleet
 Fleet operators vary in the exceptions they want reported
 Fleet managers establish parameters for each exception when their account is set-up,
and change it as needs dictate
 Fleet Cards offer sophisticated and flexible exception reporting
capabilities to fleet operators
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22. TRENDS IN FLEET VEHICLE REPAIR,
AND MAINTENANCE EXPENSES
 For every dollar spent on fuel, fleets spend an additional 20 to 40 cents
on other fleet variable expenses
 Fleet Cards are improving information capture on fleet repair, vehicle
washes, & maintenance expenses
 Managers use reporting to reduce expenditures for these activities
through vendor negotiation and monitoring procurement
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23. NEWEST TRENDS
 GPS Technologies  Mobile Technologies
 80% of business fleet operators  67% of drivers use smart phones
use GPS devices in at least some of (described as phones with at least
their fleet vehicles web-browsing capabilities)
 27% of fleet drivers use GPS to at  23% of fleet owners are “very
least “occasionally” to find fueling interested” in in-vehicle mobile
locations tablets and apps that improve
driver productivity and efficiency
 12% of fleet drivers use text
messaging to find cheapest fueling
locations
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24. MOST VALUABLE FLEET CARD REPORTING
INFORMATION
 Date, Time, Location of Purchases
 Cost Per Mile
 Brand & Types of Fuel/Services Bought
 Other Products/Services Purchased
 Driver-input Odometer Readings
 Number of Gallons/Quantities Purchased
 Price Per Gallon/Unit Paid
 Total Purchase Amount
 Miles Per Gallon
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25. TRENDS IN FLEET CARD ENHANCEMENTS
 Fleet Cards are adding valuable enhancements
 Driver Assistance Center
 Auto Rental Insurance
 Emergency Card and Cash Replacement
 Liability Waiver Programs
 Travel and Emergency Assistance
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26. Fleet Card
STIEL DIRECT STUDY
CONCLUSIONS
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27. FLEET CARD STUDY CONCLUSIONS
 Enhanced Fleet Cards increasingly delivers significant value to fleet
vehicle operators by offering
 Enhanced data capture
 Robust reporting
 Wide merchant acceptance
 Organizations are attaining positive economic benefits
 Proactively using Fleet Card information and controls
 Some fleets are integrated reporting of Fleet Card transaction data with Purchasing
Card & Corporate Card data
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28. MORE CONCLUSIONS
 95% of Fleet Managers prefer payment solutions that limit usage to
vehicle related expenses when appropriate
 Less than 5% of fleet managers have a need for Credit Card programs
that offer expanded purchasing capabilities beyond traditional vehicle
expenses (e.g.,Visa Fleet, MasterCard Purchasing, or AMEX)
 Merchants need to embrace fleet payment solutions as a cornerstone to
effective fleet marketing solutions
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29. Dan Stiel
Principal Researcher
Stiel Direct LLC
www.stieldirect.com
THANK YOU!
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