Expanding your career possibilities with a carwash could be a lucrative move. People will always need to clean their vehicles, so it’s a reliable business model that gets even more profitable if customers return for more.
Learn how to devise an impactful loyalty program at your current or future carwash to boost your potential revenue.
Benefits of an effective loyalty program
Loyalty programs are any program that rewards consumers who return for repeat purchases. It increases your chances of converting a first-time customer into one loyal to your brand. However, people forget to create loyalty programs when they’re understandably busy with other operational obligations.
This type of program could immediately improve your demographic reach. Research shows that seven out of 10 millennials and half of Gen Zer’s intended to increase their loyalty program participation in 2023.1 Your business could enjoy benefits like:
- Standing out from the competition
- Improving word-of-mouth marketing
- Keeping repeat customers longer
- Collecting consumer data
- Enhancing your customer experience.
Retaining existing customers is also key to maximizing your profit. Research has shown that it costs five times more to onboard a new customer than to retain repeat customers, a fact that shows just how valuable a loyalty program can be.2
Strategies to create an impactful loyalty program at your carwash
Keep a few useful strategies in mind when you’re ready to develop a branded loyalty program. They’ll guide your decisions so the process feels as easy as possible.
1. Schedule monthly giveaways
Giveaways appeal to new program members and recurring clients. Everyone loves a gift, so they might sign up for your loyalty program if they know they could win a monthly drawing. The prize could be as simple as a 10% discount on their next wash. Consider giving recurring prizes to the top five customers with the most washes on a regular basis to engage your loyalty members beyond their visits.
2. Provide a custom app
People who sign up for a loyalty program know they’ll have to visit a specific number of times to get a reward. A custom app would simplify that process for your customers.
People use apps for everything from enjoying a nature walk to scheduling automatic prescription refills.3 They’ll appreciate easily accessing their program profile with an app tailored to your carwash. You can also send news through the app to get their attention in addition to your other marketing efforts.
3. Work with local fleets
People’s personal cars aren’t the only ones that need washing. Local companies could join your loyalty program if you extend wash packages to their fleets. They could purchase washes in bulk if your equipment can handle their larger vehicles. You’d expand your customer base and potentially win over business owners who can’t wash their fleet at your competitors’ locations.
4. Create a marketing plan
No matter where your business operates, you’ll need a marketing plan to reach customers. An especially effective one will be necessary if you’re in an area with numerous existing carwashes.
If your operation is in California, you’re up against over 2,000 other carwash businesses attracting an identical consumer base.4 Marketing efforts like digital ads, a social media account and local commercials are just a few things to consider when deciding how to reach your ideal consumer.
You could purchase digital ads where your ideal consumer base spends the most time, like a specific social media platform. You might also buy local commercials that air during the morning and evening news for an older demographic. It depends on your target audience.
5. Offer more than your competitors
If your biggest competitor has a loyalty program that provides a 10% discount on washes, you could offer 20% off a wash and polish package. If both carwashes include lounge areas, provide refreshments your competitor lacks. People will join your program to access those benefits because they aren’t available anywhere else.
Things to avoid when devising your loyalty program
Business owners sometimes make common mistakes when creating their loyalty programs. Avoid the same pitfalls to launch your rewards system with confidence.
1. Forgetting to create a customer persona
Every rewards program has a target customer persona. It might be a young adult with a personal vehicle or a business owner with a professional fleet. Crafting your ideal customer will direct your marketing efforts and help you gauge your success. That person should feature at least five key details that clarify who you’re marketing to:
- Motivations
- Demographic information
- Behavioral patterns
- Challenges
- Goals.
If you don’t have this data-drawn guide, you might waste time and money with generalized marketing strategies. People will know your program is right for them if you advertise their goals and needs accurately.
2. Not comparing loyalty provider platforms
Your pre-launch research must include provider platforms. Loyalty program software will streamline data collection and reward distribution. Some may have features that help your business more than others, while others might have better pricing for your initial budget. Compare at least three options before choosing one.
3. Leaving customers without support
Customers eventually run into issues with every loyalty program. Your participants might wonder how many washes they have left until their next reward or be unable to access their accounts. Your program platform should include a customer support system. It may come built into your software, or you could hire a small, in-house customer service team.
Establishing customer support might require leaning more into tech services than you already do. Your program platform might include an artificial intelligence (AI) program that answers customer questions instead of a representative. You might worry that the technology could be too intimidating for your participants, but that may not be the case.
Recent data shows that 65% of Americans recognize AI is at work in customer service chatbots, so leaning more into technical support could be the best way to create a resource that makes your customers feel comfortable.5 It would also streamline your support efforts and prevent your program from requiring the same expenses as hiring a team member to field concerns.
Make your carwash more successful
Creating an impactful loyalty program at your carwash isn’t an impossible task. Keep useful strategies in mind as you take your next steps, like creating rewards your competitors don’t offer and comparing program platforms. You’ll devise the best option for your consumer base and see more significant results due to your efforts.
Oscar Collins is the founder and editor-in-chief of Modded, where he writes about cars, car trends and auto news. Follow him on Twitter @TModded for frequent updates on his work.
Sources:
- https://www.statista.com/statistics/1367912/us-consumers-intend-join-loyalty-programs-generation
- https://setomaticsystems.com/blog/encourage-customer-loyalty-at-laundromat
- https://modded.com/outdoors/soft-hiking
- https://www.census.gov/library/stories/2021/06/americas-love-affair-with-clean-cars.html
- https://www.pewresearch.org/science/2023/02/15/public-awareness-of-artificial-intelligence-in-everyday-activities
