Jack Woodfin's new dispensers talk back to customers, and the Virginia marketer is so pleased with their chit-chat that he's installing the system at all 21 of his Pit Stop outlets.

Called "Pit Pass," the system meshes radio frequency identification key-chain tags with audio messages and Internet-based real-time customer data. The result: A pump that "tells" customers about their loyalty point totals or of special "individualized" promos while they fill-up.

Akin to ExxonMobil's SpeedPass, the tags are unique to the customer to whom they are issued and can be swiped over readers at the pump or in the store. However, instead of linking to a credit card payment system, the tag collects fuel and in-store transaction data to track and issue customer loyalty points for coupons, discounts and prizes.

The system includes an audio speaker at the pump to recruit new tag customers as they fill up and reminds those with tags of their point totals or what bonuses they have earned.

"Unlike SpeedPass it brings customers into the store," says Woodfin, an Exxon and BP jobber who uses SpeedPass at his 15 Exxon units. "The guy who last week bought a coke and peanuts when he gassed-up can be told at the pump he can get a free bag of nuts with a six-pack of soda." Another benefit: The system does not risk turning a cash customer into a credit customer, a la SpeedPass and its 3% transaction fee. "SpeedPass is just for credit customers, but Pit Pass is for all my customers, cash or credit," Woodfin says.

Called the Fidelis Loyalty System, it is manufactured by Norfolk, Va.-based Outsite Networks and it isn't cheap - it costs about $10,000/store, along with what Woodfin calls a "reasonable" monthly fee. The RFID key chain tags run between $1-$2 each.

Woodfin has tested the system at two sites since early this year. Although he is keeping his sales increases close to the vest, he says the tests went well and he expects the program to help the company compete against Big Box competition. "It's about customer retention - we're very happy with it and the fact that we're rolling it out to all our stores pretty much says how the tests went."

Woodfin also tested a video offering from Outsite at one store, but says the real value is in the audio system. "The video is more expensive in all sorts of ways and doesn't add that much over the audio," he says.

Perhaps most importantly, marketers can run their promotion programs themselves, controlling points, adjusting rewards, and customizing offers to individual customers through the Fidelis Website. The site tracks transactions at locations in real-time, giving sales figures down to individual items and offering instant pie charts and graphs that marketers access with a password. The system also lets Outsite monitor locations for any downtime or hardware issues.

One Southeast marketer testing the system noted some difficulty convincing customers to participate in the program, adding that the monthly fee seemed steep.

"But the website is great and it could reduce costs from a marketing standpoint with the data it collects and organizes for you". The Fidelis system involves virtually no additional employee training. "Other than having them sell the program to patrons, employees don't really have much to do with it," he added.