Appy to Help!
April 7, 2022
8 minute ReadBY SANDY SMITH
When Autobell, a chain of 87 car washes in the Mid-Atlantic region, needed to get a handle on its unlimited program, a custom app quickly showed itself to be the perfect fit for them — one that could manage its unlimited program, ease the friction for e-commerce for its customers and provide a whole slew of other solutions for the company.
“Looking at the dollars Autobell would have spent with RFID or LPR compared to what we would spend with an app is not even a comparison,” said Autobell Chief Operating Officer Carl Howard. “For a company that has not fully engaged in the subscription-based plans because of the equipment cost, this is a huge advantage.”
Interest in apps has been further fueled by the pandemic, with customers seeking more contactless options. Joe McEwan, Marketing Manager for Hamilton Manufacturing Corp., has seen this firsthand. Hamilton provides a custom app program in addition to the hardware it develops for the car wash industry. “We had steady growth with app adoption since we launched our program in 2017, but demand really grew last year. A lot of operators needed to lean on technology in ways they never had before to help reassure their customers that car washing was still safe; thankfully we were able to offer a quick and robust solution.”
Membership model app developer Everwash also has seen the benefits, thanks to the pandemic, said Scott Pashley, Chief Revenue Officer. Contactless options are almost a necessity, now. “And to make it a contactless experience, you need an app,” he said.
Howard believes contactless is here to stay, too. Autobell fully deployed its app in December 2020 and has high hopes for its profitability and support. “That is going to be a big payback and give us a true, easy-to-manage loyalty program.”
E-commerce and apps also make the recruitment process user-friendly, which is a plus. “If your business model involves establishing a recurring revenue stream through monthly subscription programs, removing barriers to entry — such as complex terms and lengthy contracts — is a great way to hook people in,” Howard said.
Once they’re enrolled, the autonomy that the app supplies encourages customers’ ongoing loyalty, as well. “Obviously a consistent wash experience is critical, but giving customers an easy way to view invoices or change plans is also paramount,” Howard said. “Even if a customer wants to cancel their plan, providing a simple method to achieve this will leave a positive impression and potentially lead to them rejoining down the road.”
According to Amy Olson, WashCard Marketing and Graphics Specialist, apps are part of a larger consumer trend. “Right now in the United States, there are a growing number of people looking for touch-free solutions. Not only because of COVID, but because carrying cards and cash is becoming a thing of the past. Millennials and Gen-Zers typically don’t carry either and would prefer to pay with their phone.”
This isn’t just for the young, however. “We’ve noticed our largest demographic is actually between the ages of 35 and 44, with 45-54 not falling far behind,” Olson said. “Apps of any kind are going to be more popular as the age of flip phones dies out, technology becomes easier, and makes payments more accessible.”
EASE OF USE
Autobell took a slow approach to its rollout, initially beginning at one location, an isolated spot, so they wouldn’t have any crossover customers,” Howard said. “Once we decided that it would work and customers liked it, we began to put it in place district by district. The customers loved the ability to start and stop the plan when they wanted to. They liked the ability to change their plan periodically. In certain times of the year, they may want the interior done more frequently than others. They could also prepay.”
As Autobell considered building and deploying an app, one thing stopped the company in its tracks. “I did not realize that each time Android or Apple’s operating system updates the software, the app has to get recertified,” Howard said. “They update every 45 days or so. Just keeping up with that would be a nightmare for a car wash owner.”
Autobell partnered with an app developer who had a solution for the car wash industry, and Autobell was able to customize the app with its branding and programs. “The screen looks like it would be our website; it looks very Autobell,” Howard said.
Apps aren’t just for tunnel washes. WashCard’s UWashApp is used for self-serve bays, vacuums, detail centers and tunnels, Olson said. The newest release adds business accounts and rewards.
“Current customers on the app are seeing new customers at their location, as well as added revenue because of the additional customers,” Olson said. “Wash operators are also able to resolve customer service issues right from the app. So if a customer calls saying something isn’t working, an operator can tell them to go to the next bay, and turn on the equipment for the customer and not have them get angry and break their equipment.”
Everwash works on a revenue split, with the wash operator investing nothing upfront. The app developers also travel to the site to train employees on selling membership and splits the commission with the operators. It also works with companies to offer unlimited car washes as an employee perk, Pashley said.
Autobell has focused initially on unlimited customers, but plans to begin using the app to offer specials and coupons customized based on customers’ last visit or purchases through the app, Howard said. He also would like to offer a loyalty program. “[The app] does a really good job of selling.”
It also has kept his customers abiding by the program’s terms. “When we rolled this out, we got quite a number of complaints that surprised me,” Howard said. “People wanted to have one membership and download it on everyone’s phones. But unlimited is good for one car. When we started getting those complaints, we realized there were quite a few customers buying one plan and using it on multiple vehicles prior to the app.”
PARTNERSHIPS ARE BEST
Howard suggests that car wash operators looking at apps should try to find a developer with specific experience in the industry. That way, they’ll have some level of knowledge of what works and what doesn’t work, he said. “If you have interest in converting your subscription plan into the app, that’s a huge advantage.”
Developing an app can cost tens of thousands of dollars, said Greg Snow, also a Marketing Manager for Washify. Websites with e-commerce functionality also can get expensive, depending on your options. “In both cases, it’s worth speaking with your POS provider to see what they offer for users,” Snow said. “If you haven’t decided on a POS yet, a mobile app and an e-commerce solution should be on your wish list while evaluating systems. This will help you offer more value to your current customers and even encourage new customers to purchase your products/services, your target market can expand, thus increasing revenue and getting a successful and time-convenient ROI.”
Howard said car wash operators should ensure that any app partner stays on top of trends. “If you’re paying fees to a company that’s not continuously developing their product to be better, is it worth the investment? You also want to make sure your investment will be protected if something does break. What kind of support is available to you?”
Olson recommends that any rollout of a new product — including an app or e-commerce — includes ample signage at your location and instructions for use, and it is simple for your customers to understand. “Over-complicating anything during the payment process creates friction with your customer and creates one of two outcomes: they wash mad and potentially break stuff, or they wash and never come back.”
Social media promotions also should be used, not just for the new app, but anything new at your wash, Howard said. “Use social media as an outlet to brag about how awesome your wash location is.”
Ultimately, it comes down to understanding who your customers are and what they are or will be looking for, Snow said.
E-COMMERCE OPTIONS
E-commerce — which allows a customer to purchase washes or enroll in unlimited programs from a wash’s website — also is growing, said Rina Mandujano, Marketing Manager for point-of-sale system Washify. “E-commerce has historically had some barriers to entry for car wash owners because it can be difficult or expensive to add this functionality to a website. Luckily, some POS companies have added this feature to their system in order to support digital sales for their operators.”
Washify offers an easy-to-use plug-in that helps operators sell books, gift cards or memberships. “This helps car wash owners take their website to the next level and sell 24/7 in a convenient format for their customers,” Mandujano said.
E-commerce can offer more engagement, or the opportunity for online-only specials, Mandujano said. Social media can direct customers to the website. “Promoting online sales like this can help you lock in revenue without immediate redemption. We know that plenty of gift cards are purchased but never used, and many unlimited members end up visiting less than they originally planned. This helps you serve your customers while maximizing profits for your business.”
BETTER INSIGHT
Apps and e-commerce can provide mountains of insight to car wash operators. “Before apps and other loyalty programs like RFID and LPR, customers were just a dollar amount,” McEwan said. “You never really knew who your customers were. Now, you can capture a wealth of data — name, email address, phone number, zip code and more. Out of the gate, you can see who they are, how they are spending, how frequently they wash, where they’re coming from, and even if they are referring new business to your wash.”
Without an app, collecting data about customers, their demographics and their buying patterns is limited, and communication is challenging. “An app is your best, and one of the only ways, in our industry to know who your customer is and to be able to communicate with them,” Pashley said.
Apps also provide an ongoing link to members and former members, Pashley said. “They’re a lifeline, a tether to your members, even when they become a non-members, as long as they don’t get rid of the app.”