With fresh ideas, the car wash industry has a chance to tap into a younger, loyal customer base. Those were the findings of the industry’s most up-to-date customer survey, which was conducted by Blue Chip Marketing on behalf of the International Carwash Association (ICA).
The study was based on a total of 631 surveys from all regions of the Unites States from Nov. 22-24, 2011. The sample was comprised of adults who have washed their car at a professional car wash at least once in the past year, resulting in a margin of error of +/- 4 percent. It is the most recent data available for the car wash industry.
“What this study helped us indicate is who those people are, what motivates them, how we can find them and how we can help car wash owners drive future sales,” Blue Chip Marketing Chief Strategy Officer Bob Klein said.
Reaching New Customers
When the International Carwash Association commissioned Blue Chip Marketing for this new consumer study, it was introduced to the world of friends, acquaintances and lovers.
Those are terms that Klein uses to describe both customers and potential customers. Acquaintances are customers that are relatively infrequent, those that may wash their car once or twice a year. Friends, on the other hand, would get car washes once a month, while lovers are customers who wash their car every week.
The goal, Klein says, is to make more acquaintances, turn acquaintances into friends and friends into lovers. It’s not as easy at sounds. But Klein helped provide a potential roadmap to success in Blue Chip’s consumer study, which was completed last December.
“We’ve been conducting a consumer survey since 1998, and it is most encouraging to see the number of consumers using a professional car wash increase year over year,” said ICA’s Chief Operating Officer Claire Darmanin.
To reach potential new customers, Klein suggests a five-pronged approach based heavily on social media.
“In the U.S. today, 50 percent of people own a Smartphone, and that number is even higher in the South,” Klein said. “There is an opportunity to very efficiently through social media have friends that can reach acquaintances.”
Digital Socializing
Klein presented his recommendations at The Car Wash Show on May 7 in Las Vegas. Digital socializing was the main focus of Klein’s presentation. During his presentation, Klein recommended a variety of digital and social media tactics that included Facebook, Foursquare and Twitter.
“[Car washes] absolutely should have a Facebook page,” Klein said. “Twitter can work in a similar fashion. It’s just not as robust.”
Klein said that when it comes to Twitter, timing is everything.
“The key is being timely from the standpoint of the customer’s aperture (receptivity),” Klein said. “There’s no better time to tweet than when the forecast is for sunny and in the 80s all week.”
According to Klein, the reasons to engage in social media extend beyond reaching a younger demographic. Social media also helps forge deeper, more engaging relationships; gathers real-time feedback; reaches the masses quickly and efficiently; and reaches customers on their path to purchase. It is also cost-effective and measurable.
The global power of social media is undeniable. There are more than 640 million registered users on Facebook. Twitter currently claims more than 175 million registered users. Foursquare, a free cell phone application that provides animation and recommendations for local businesses, draws millions of visitors per day.
Of the 640 million on Facebook, 50 percent log in every 24 hours, resulting in a pool of 320 million daily viewers. Also, 65 million view Facebook through mobile devices. More than 3.5 billion pieces of content (web links, news stories, blog posts) are shared each week on Facebook.
For car wash operators, the ideal Facebook target group is men 21-34 who are college educated within a five-mile radius of the store. Klein suggested simple messages to reel them in, such as “don’t get caught riding dirty” or “detailing is booking up quick, be sure to make an appointment to schedule your detail soon.” Messages can be posted during down time by employees who work the cash register during.
Social media also can be used to make new business-to-business friends to help build a larger customer base. This can be done through cross-promotional tactics like statement stuffers, brochures and coupons.
Importance of Customer Loyalty
For car wash operators, there is a prime opportunity to reach a market that is trending toward car washes instead of home washes. The Blue Chip study revealed that in 2011, 69 percent of all respondents washed their vehicles at professional car washes (35 percent full-serve, 34 percent self-serve). That number is up from just 55 percent in 1999 and 57 percent in 2002.
The most frequent home washers are in the Northeast at 32 percent, followed by the West at 19 percent. More frequent home washers are male (63 percent) compared to female (37 percent). The majority have a household income of $30,000-49,000 (31 percent), drive cars (71 percent) and are between the ages of 25 to 44 (58 percent).
According to the study, the main factors holding more back from using professional car washes are time, need and cost. Of the respondents to the survey, 36 percent said car washes were too expensive, 22 percent said it wasn’t necessary and 20 percent said it was too time consuming.
Klein said the best way to combat the price factor is by building customer loyalty. Building loyalty is important because in almost every category, 80 percent of the volume of sales comes from 20 percent of the customer base.
“The entire discussion about acquaintances, friends and lovers is about building loyalty,” Klein said. “When we are loyal to a particular brand, price becomes much less of a factor. Ideally, it becomes a non-factor. Think Apple, the ultimate in brand loyalty. Apple products are never on sale, nor do they ever need to be.”
As for the time issue, Klein said it’s important to drive advertising through social media at times when car wash volume is lower.
“Get people on their way to work or during the lunch hour,” Klein said. “Catch them after several days of rain and muck on the roads, or on a sunny day after a snowstorm when cars are filled with salt and gunk.”
Environment & Advocacy
Klein said the International Carwash Association’s WaterSavers program offers a new and compelling benefit for car wash operators. Those surveyed also were intrigued by the environmental message of the WaterSavers concept.
“We’re really encouraged by the numbers around WaterSavers. It reaffirms to us that consumers react positively to the environmental messaging and that it plays in to their decision-making as to where to wash their cars,” said ICA’s Darmanin.
In the study, 59 percent of respondents said they would be somewhat more interested or more interested in going to a WaterSavers car wash. That breakdown includes 57 percent of acquaintances and 74 percent of lovers.
“The premise and concept that it has a significantly reduced impact on the environment is what is driving the consumer interest,” Klein said. “There’s a lot of talk value there.”
According to the study, six of 10 respondents would tell others about a WaterSavers car wash and the concept would make frequent washers more willing to drive out of their way and pay somewhat more to wash their cars at a WaterSavers car wash.
“Cost is always about customer loyalty,” Klein said. “This is where WaterSavers can be a compelling difference-maker.”
