By effectively utilizing winback and active member promotions, car wash operators can transform their business into a hub of activity year-round. Marketing strategies shouldn't just be for recruitment, they should target existing and former customers, as well.

By Max Pulcini, Director of Marketing and Communications, EverWash

Navigating the ups and downs of the car wash business requires more than just quality service — it demands smart, strategic marketing to keep business booming all year round. To help even out peaks and valleys, effective marketing strategies should not just focus on acquiring new members but also on reactivating expired memberships and engaging current members through year-round targeted promotional campaigns.

The Art of Reactivation and Engagement

Successful car wash operators understand the importance of maintaining a vibrant member base by regularly implementing winback and active member promotions. These strategies are crucial for tapping into the potential of lapsed members, maximizing the engagement of current ones, and mitigating the impact of seasonal slowdowns.

Campaigns designed to re-engage former members and incentivize current ones often include special offers that reignite interest and foster loyalty. For instance, offering a substantial discount for the first month or two can encourage lapsed members to renew their subscriptions. Similarly, providing current members with exclusive deals or the opportunity to add additional cars to their membership at a reduced rate can significantly boost retention rates.

Rinse, Lather, Repeat: A Cycle of Engagement

Implementing a cyclical promotional strategy ensures continuous engagement. This might start with a winback campaign at the beginning of the quarter, followed by an upsell promotion, and culminating in a referral incentive. Each stage of the cycle re-engages different segments of your customer base, maximizing the overall effectiveness of marketing efforts.

Winback Campaign Example

• Month 1: Start with a winback email campaign to get as many members re-enrolled. This promotion casts a wide net and includes a discount to help expired members capitalize on the value of your membership and, in turn, help you capitalize on the value this influx of members will bring to your wash.
• Month 2: Follow that up with an additional vehicle discount delivered through in-app notifications and push SMS prompts to cast an even wider net. This means all the people you just won back (as well as the current roster of already active members) are encouraged to add another car to their membership at a discounted price (many probably didn't know they could do that through their membership management app).
• Month 3: End your quarterly marketing cycle with a refer-a-friend contest. Now that we've won members back and convinced them to get more cars signed up, offer them the ability to refer friends via text, email or social to join and get credit back toward their next month.

Assessing the Return on Investment

Evaluating the return on investment (ROI) from various campaigns helps in understanding what works best for reactivating former members and retaining current ones. Metrics such as the increase in membership renewals, customer lifetime value and overall revenue growth are vital indicators of success.

Take this example: Wash A has an average monthly plan of $25/month and offers a "New Year, New Shine" winback campaign for expired members with a promotional 50% discount for the first month of membership. According to Wash A's data, customers using the promo code washed their vehicle three times per month at an average cost of $2.00 per wash.

When taking into account the 50% discounted membership price of $12.50, down from $25, Wash A netted out $6.50 ahead for each customer in month 1. In fact, Wash A stayed net positive from the beginning, increasing that month-over-month revenue figure as the full membership price was reinstated.

So, think of the promotional discount as a small cut in immediate profit to re-acquire a high-value customer who will stay on longer at no risk. This is a much cheaper and more cost-effective alternative than any other traditional digital marketing strategy, given that the average customer acquisition cost (CAC) for online-marketed business is $70. 

It not only costs less to run a promotion on existing customers, but these individuals are actually more valuable to your business than new customers. Winback promotional customers don’t wash more or less than the average customers, so there is no need to worry about “bargain hunters” running up your operating costs. So, in the long term, the lifetime value and benefits of reactivating existing customers far outweigh the much higher cost of acquiring new customers who are proven to be less valuable over their lifetime.
 
Imagine customers joining and canceling their membership after six months. Three months later, they reengage through a personalized winback campaign and last another 11 months. Some of these members may even bring on an additional vehicle and refer a friend!

Driving Business Growth Through Strategic Promotions

By effectively utilizing winback and active member promotions, car wash operators can transform their business into a hub of activity year-round. The key to success lies in understanding and implementing digital marketing strategies that align with customer behaviors and preferences. Meeting customers where they are, with the right message at the right time, can make all the difference in building a loyal customer base and driving sustainable business growth.

If interested in delving deeper into these methods and successes, EverWash recently released a case study on the effectiveness of membership promotions, “Reactivating, Re-engaging and Retaining: Promotional Plan Case Study” that is available for download on the EverWash website. EverWash is also a partner with LEAD Car Wash Manager Training.