Top Technology Trends in Fuel Delivery
2024 Benchmarking Report
Introduction
Welcome to the 2024 Top Technology Trends in Fuel Delivery Benchmarking Report, brought to you by Cargas. We’re excited to share the findings of our fifth-annual Tech Trends Survey, which draws from half a decade of research.
Our Benchmarking Report does more than examine the history of tech adoption in the energy industry. It also lets us demystify what these changes mean and helps us predict where the industry is heading next.
Peer into the future with this report, which harnesses insights from more than 100 fuel dealers to explore how their technology has evolved year over year. You’ll learn how your organization compares to other energy companies and discover how you can take charge of your destiny using technology for every area of your business.
Adam Harrison | Sales Consultant, Cargas Energy
Overview:
Technology Landscape
In recent years, energy companies have realized the potential for efficiency gains by embracing a more extensive array of software tools. These companies are actively diversifying their tech stacks, prioritizing new business software solutions, and showing a keen interest in cutting-edge features such as automation, artificial intelligence, and cloud computing.
This diversification goes beyond the realm of fuel delivery, encompassing investments in tools aimed at optimizing overall operations and enhancing customer service.
When would you consider purchasing new fuel delivery software or replacing your current fuel delivery software?
Number of responses: 127
Almost 25% of respondents purchased fuel delivery software within the past 3 years, but the vast majority have had fuel delivery systems in place for four or more years. And it seems that fuel dealers are eager to stick with the status quo—at least for now.
In 2023, 38% of respondents wanted to wait seven or more years to purchase fuel delivery software. That number grew by almost 13% in this year’s survey, signaling that energy companies want to wait before making fuel delivery tool investments. Recent investments in new software could also explain the increase, as fuel dealers who recently purchased a new solution aren’t looking to replace it.
Despite this steep increase, it’s not the highest we’ve seen; in our 2022 survey, 58% of respondents said they would wait seven or more years.
In addition to your fuel delivery software, what other technology do you use to support your business?
Number of responses: 127
93% of respondents use two or more software solutions to manage business.
Internal productivity and customer satisfaction are the top drivers of technology currently used by fuel dealers. When it comes to teamwork and collaboration, energy companies turn to office suites like Microsoft 365 and G Suite (75%); payroll and HR software (72%); accounting and general ledger tools (67%); collaboration tools for chat, calls, and video conferencing (54%); and electronic document storage and sharing (54%).
To better serve customers, energy companies have invested in tank monitors (77%), credit card gateways and payment processing tools (71%), and customer portals (57%).
In addition to fuel delivery software investments, energy companies are prioritizing other solutions to add to their tech stacks. More than half of respondents (55%) are actively looking into new business software. For these respondents, some of the most popular tools under evaluation are fuel delivery software (17%), service solutions like Service Titan (13%), customer care solutions like Customer Relationship Management (CRM) software (11%), and point of sales software (11%).
Additionally, respondents currently evaluating software are interested in features like automation (10%), artificial intelligence (10%), and cloud capabilities (7%).
Trend 01:
Artificial Intelligence
In an era of rapid technological evolution, fuel dealers are left wondering what impact tools like artificial intelligence (AI) will have on operations. That’s why this year’s survey polled respondents on current and future applications of AI in the fuel delivery space.
Some respondents believe AI will bring advanced forecasting and delivery routing to the industry. But others remain cautious and even skeptical, citing the unique and variable nature of fuel delivery and HVAC service.
Does your company use artificial intelligence (AI) tools?
Number of responses: 127
16% of respondents use artificial intelligence, with ChatGPT being the most popular tool listed. These respondents are experimenting with ChatGPT’s writing and query capabilities to draft emails and answer questions. Other respondents use Google Bard for collaboration, Samsara for driver safety, and Podium for sales reporting.
40% of respondents aren’t sure what role AI might play in the fuel delivery industry, but others have predictions. Some respondents noted the potential for advanced forecasting and delivery routing with help from AI, while others hoped for improved customer service and efficiency.
“Aside from prediction services, fuel delivery has too many variables for AI.”
“I’m wary of AI but sure it is coming into play here soon.”
“Not so much in fuel delivery than in service troubleshooting. I see this having very big potential in customer service, marketing, accounting/finance, and field service.”
“I’m not sure, but I’m all for doing things most efficiently, all while cutting down on hours spent on tasks.”
“I could imagine AI being able to more efficiently route deliveries with real-time data.”
Trend 02:
Tank Monitors
Over the past few years, tank monitor usage has been one of the top trends in fuel delivery. Companies continue to invest in tank monitors to improve customer service, optimize operations, and forecast inventory and service needs.
Key Benefits
Competitive Advantage
Tank monitors provide real-time insights into tank health, future fill requirements, and maintenance needs. This helps energy companies monitor inventory more effectively and manage ongoing operational costs. Plus, remote tracking capabilities send alerts when it’s time for a fill or maintenance, which helps the back office predict dispatch needs.
In 2023, have you:
Number of responses: 127
Fuel dealers continue to invest in tank monitors, with almost 70% of respondents deploying or spending more on tank monitors in the past year. Most notably, all respondents who currently use tank monitors either maintained or increased spending this year.
Tank monitors offer several benefits to fuel delivery companies, with a majority using tank monitors to better manage tanks with variable usage, improve delivery efficiency, and reduce runouts.
Why are you using tank monitors?
Number of responses: 106
What forecasting capabilities does your fuel delivery software offer?
Number of responses: 127
Forecasting is a major component of modern fuel delivery software and tank monitoring tools, offering a competitive edge through leaner inventory and more prompt customer service. More than 75% of respondents use degree days, tank monitor readings, and K-factors to forecast fuel delivery needs.
Degree days and tank monitor readings have become popular forecasting methods over the past few years, which supports two trends—firstly, that fuel dealers are adopting tank monitors to accommodate data needs; and secondly, that tank monitors are becoming increasingly integrated with fuel delivery software.
Brought to You by Cargas
This report is proudly presented by Cargas, leading software for fuel delivery and HVAC service companies. With tools for fuel delivery, customer service, HVAC service, and cylinder exchange operations, Cargas Energy helps fuel dealers do more with the resources they already have so they can grow their businesses.
Trend 03:
Business Intelligence
Swaths of data flow into fuel delivery systems daily, and businesses need a reliable way of managing this information. Business intelligence tools offer data snapshots in charts, graphs, and reports so fuel delivery companies can understand past performance and plan for the future.
Key Benefits
Competitive Advantage
Modern software offers flexible reporting and dashboard capabilities to make data analysis a breeze. And by pairing strong reporting capabilities with cloud software and artificial intelligence, data is more accessible than ever.
How do you generate reports to evaluate company performance?
Number of responses: 127
Manual data consolidation is increasingly popular as energy companies diversify their software environments, a sign that some legacy systems may not sync with modern software. Only 4.72% of respondents do not generate reports—down almost 3% from last year.
Which of these KPIs does your business measure?
Number of responses: 127
It makes sense that profit is still the top key performance indicator (KPI) for fuel delivery companies; more than half of respondents noted that accounting and finance teams are responsible for tracking performance information and generating reports.
87% of respondents use two or more KPIs to measure the success of their fuel delivery and HVAC service initiatives. In addition, 35% of respondents track unique KPIs that were not included in the multiple-choice list, including:
- Customer acquisition cost
- Active service contracts
- Driver-specific KPIs (miles driven, stops made, gallons delivered per stop, planned vs. actual route performance, truck expenses, etc.)
- Labor rate and billable time
- Marketing KPIs (search engine optimization, social media and website performance, sales leads and conversions, etc.)
Do you struggle to get the data you need to evaluate your business performance?
Number of responses: 127
Fewer respondents to our 2024 survey struggle to get data compared to those who took our 2023 survey. Investments in integrative technologies are helping fuel dealers pool their data to get an accurate look at business success.
Respondents satisfied with their current data still seek new ways to evaluate business performance. Many respondents voiced interest in more advanced real-time reporting capabilities to drill down into the specifics of unique data sets and compare data across disparate systems.
Trend 04:
Cybersecurity
Cybersecurity has become a rising concern as the fuel delivery industry embraces new and innovative technologies. Companies are investing in various tools to protect data and retain customers’ trust.
Key Benefits
Competitive Advantage
Unsecured data can increase the likelihood of breaches, hacks, and viruses. When these happen, businesses see an increase in IT costs and a decrease in customer trust. Cybersecurity helps companies protect their data and their reputation.
Who manages your cybersecurity needs?
Number of responses: 127
Fuel delivery companies continue to favor internal IT resources, often using these in tandem with external resources to maximize security. The number of respondents with no cybersecurity resources has decreased since last year.
91% of respondents use two or more security measures to protect company and customer data. Password protection, firewalls, two-factor authentication, cybersecurity training, and disk encryption usage increased since 2023, which correlates with the increase in cybersecurity measures we’ve noticed since 2021.
What security measures do you have in place to protect your company and customer data?
Number of responses: 127
What is your biggest concern related to cybersecurity?
Number of responses: 127
Only 2% of respondents have no concerns about cybersecurity. For the rest, hacks and breaches, ransomware, viruses, and security are the top stressors.
76% of respondents have not experienced a cybersecurity breach. Of those respondents, 90% use two or more cybersecurity measures.
Have you experienced a cybersecurity breach?
Number of responses: 127
Trend 05:
Sales & Marketing Tools
Sales and marketing investments are on the rise, with teams casting wider nets to capture potential customers and tracking interactions to generate more sales. Energy sales and marketing professionals use technology to personalize every interaction.
Key Benefits
Competitive Advantage
Targeted multi-channel marketing is more achievable than ever, thanks to a rise in automation. Fuel delivery companies can simultaneously prioritize immediate messaging and personalized outreach to win new customers.
Where can customers find you online?
Number of responses: 127
Mobile-friendly websites have become the most popular web resource for fuel delivery customers, knocking Facebook to the second spot. Energy companies continue to expand their use of social media like LinkedIn and Instagram, although YouTube and X (formerly Twitter) are less popular than they were in 2023.
Referrals and word-of-mouth advertising remain the most fruitful customer acquisition method for almost 97% of respondents. Digital and print advertising also remain popular with more than half of respondents.
How do you acquire new customers?
Number of responses: 127
How do you track sales opportunities and prospective customer information?
Number of responses: 127
Although spreadsheets and CRM systems remain the most common means of tracking opportunities, the use of fuel delivery software for sales and marketing is on the rise. Since 2023, more respondents report not using a specific system to track sales and marketing information, instead relying on data consolidated from multiple systems.
Almost 45% of respondents use marketing automation tools to create content, communicate with potential customers prospects and leads, and track activities that help generate sales.
Do you use a marketing automation tool for emails, website forms, surveys, or activity tracking (for example: MailChimp, Constant Contact, or HubSpot)?
Number of responses: 127
In 2023, have you:
Number of responses: 127
Decreases in marketing expenditures dropped by almost 8% since 2023, with more respondents maintaining spending levels or investing more in marketing activities.
Of the 76% of respondents who use sales and marketing software in addition to fuel delivery software, 25% have integrated the systems to sync data, increase operational efficiency and inventory insights, and improve customer service.
Is your sales and marketing software integrated with your fuel delivery software?
Number of responses: 127
Trend 06:
Customer Experience Tools
The fuel delivery industry has seen a digital shift in customer interactions since 2020. While energy companies still value strong customer relationships, self-service capabilities are increasingly important for customer retention and loyalty.
Key Benefits
Competitive Advantage
Customers have grown more comfortable with self-sufficiency, so demand for e-commerce capabilities and self-service tools is expected to stay. Fuel dealers should be prepared to offer these features to their customers.
What self-service options do you offer your customers?
Number of responses: 127
Self-service options are more popular than ever, with online bill pay growing 9%, autopay growing 20%, and account management growing 15% since 2023. This is the largest growth we’ve seen in the self-service area.
What tools do you use to provide these self-service options?
Number of responses: 127
What tools do you use to create and send customer communications?
Number of responses: 127
Phones remain a staple for customer communication, but almost every other tool saw increased usage since 2023. Most notably, collections services grew by almost 9%. Fuel dealers are willing to use technology to make customer outreach more efficient, all without sacrificing valuable business relationships.
Customer service representatives use more tools than ever to get the job done. Email, phone, chat tools, and helpdesk all grew by at least 2% since 2023. Social media usage fell nearly 10%, a sign that fuel dealers might prefer using social media for sales and marketing rather than customer service.
What tools do your customer service representatives use?
Number of responses: 127
How do you monitor customer reviews?
Number of responses: 127
Fewer respondents manually monitor customer reviews compared to 2023. Instead, we found a 10% increase in review sites and an 8% increase in review management software.
Customer loyalty programs, customer appreciation events, community involvement, and customer service have all increased since 2023.
Compared to previous years, fewer respondents reported discounts and special price offers as customer retention strategies—given supply chain and inflation concerns in our 2023 survey, this is understandable. Instead, fuel dealers rely on customer and community interactions to maintain positive business relationships.
How do you retain customers?
Number of responses: 127
Do you accept credit cards and/or electronic payments?
Number of responses: 127
Fuel dealers continue to embrace credit cards and electronic payments as viable options for customers, with more than 96% of respondents accepting these forms of payment.
Trend 07:
The Cloud
Cloud technology adoption has increased among fuel dealers since 2020, and even for those who haven’t made that investment, cloud capabilities are on their radar.
Key Benefits
Competitive Advantage
Cloud software allows fuel delivery companies to access data whenever and wherever it’s needed, ensuring all team members can view up-to-the-minute data and expedite decision-making.
Is your company data stored on in-house servers or cloud servers?
Number of responses: 127
Do you currently use cloud-based or web-based applications for your business?
Number of responses: 127
Reliance on in-house servers is shrinking, with cloud and hybrid servers on the rise. Nearly 73% of respondents use cloud servers in some capacity.
Almost 87% of respondents use cloud-based and web-based applications, such as mobile delivery tools and other business software built specifically for the cloud.
When considering future software purchases, is it important that the product has a web-based or cloud-based platform?
Number of responses: 127
True or false, cloud servers are safer than on-premise servers?
Number of responses: 127
86% of respondents value web-based and cloud-based platforms when evaluating new software, up from 82% in 2023 and 79% in 2022.
Since 2022, the number of respondents that believe cloud servers are safer than on-premise servers grew by 12%.
Trend 08:
Mobile Technology
Wireless technology has transformed the fuel delivery industry, allowing back offices and drivers to communicate with minimal downtime.
Key Benefits
Competitive Advantage
Flexibility is a crucial feature of successful fuel delivery companies. It’s made possible by instantaneous communication, which means data is up-to–the-minute and appointments are as efficient as possible.
Does your fuel delivery software include mobile applications?
Number of responses: 127
Most respondents use mobile applications as part of their fuel delivery operations, down 2% from 2023 but still 10% more than in 2022.
59% of respondents who purchased fuel delivery software in the past 7 years have built-in mobile applications.
2024 survey respondents were less likely to use data downloads to transfer data from the back-office to drivers and technicians, and while manual process usage remained the same, real-time communications increased.
How do you currently get info to your drivers or technicians?
Number of responses: 127
When considering future software purchases, is it important that the product has mobile options?
Number of responses: 127
As of 2024, 95% of respondents consider mobile features when weighing future software purchases.
Investing in the Future
Since 2022, fuel dealers have become less satisfied with the technology available to them. Dissatisfaction increased in 2023 and remained the same in 2024.
Are you satisfied with the technology available for your industry?
Number of responses: 127
Each year, we ask fuel dealers the following question:
What technology tools do you think the industry is missing, or what business processes do you think could be improved using technology?
This year’s responses were some of the most passionate we’ve received. As the quote from one of our respondents illustrates, it’s not a matter of technology missing, but rather a matter of existing technology evolving with the times:
“Most technology is available but it needs to be more robust and have better access to combine disparate data together to gain better insights into the business.”
Here are the top eight areas of improvement named by our respondents:
What is the number one issue impacting fuel delivery companies today? (Ex: Supply chain disruption, inflation, stagnant hiring, etc.)
Last year, the top four issues impacting fuel delivery companies included hiring and retention; federal, state, and local regulation; inflation; and supply chain disruption. The same four issues persisted in our 2024 survey, along with one new concern. Here’s what our respondents had to say about them:
As fuel dealers grapple with the many threats to their industry, they turn to technology for support, and perhaps answers. Many wonder how technology can help offset inflation and rising costs, increase productivity among a shrinking workforce, and aid in business growth year over year:
“How will technology increase efficiency and reduce costs?”
“How can we make all the data work together?”
“How is it best being utilized to take it to the next level?”
“How do small energy companies get access to the same sophisticated technologies larger organizations have?”
“How can it keep evolving to specifically help the delivery drivers and service techs?”
“How can we make all these different layers simpler to use and work (integrate) more efficiently?”
And of course, there’s the recent explosion of artificial intelligence, which has fuel dealers equally fascinated and fearful:
“Can AI technology be used to increase efficiency?”
“Will AI change how propane companies do business?”
“Will AI be controllable?”
“How safe is AI?”
Methodology
This online survey was conducted from September through October 2023. Fuel dealers across North America were solicited via email, digital advertising, and social media.
The survey had 127 participants who use a range of software and other technology to support their businesses. The number of respondents for each question is listed below each chart.
How many delivery trucks do you have?
Number of responses: 127
68% of respondents can be classified as small- or medium-sized businesses, with fleet sizes ranging from 1 truck to 20.
Where is your company headquartered?
Number of responses: 127
Most survey participants operate in the Northeast and Southern United States. This year’s survey saw the highest ever turnout of non-contiguous participants.
What products and/or services do you offer?
Number of responses: 127
88% of respondents offer two or more products and services to their customers.
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