To many car care business owners, their customers are anonymous. They drift into a wash site every few weeks, a greeter says hello but doesn’t know their name or address. They graze through a lobby while their car is being washed and unless they pay by credit card they remain anonymous.  A thinly trained clerk takes their order and flashes them a receipt without even looking at them and says thanks while they continue their public chat with a friend behind the counter. They encounter an aggressive greeter who skillfully up-sells them a couple of services but never asks or collects their name and address. They may visit a self-serve wash where the owner may in fact want them to remain anonymous forever since he feels his cash business is some sort of tax shelter.
For too long, car care business owners have not practiced the marketing arts.  They have surely focused on delivering a clean car—but they have neglected or ignored the benefits of getting to know their customers in a marketing sense.  Perhaps small towns are different, but in big cities and the suburbs, the art of marketing to a known customer base is in its infancy.  While some car washers may take pride in being sophisticated marketers and may actually have a polished database they use to build loyalty, affinity and traffic—most car washers have only dabbled in this area.  Do car washers not care abut cash customers?  Do they collect and actually use customer demographics?

Members of the Thought Leadership Club were asked the following two questions.

1. In an economy where customer loyalty is rewarded by many merchants, how can car care businesses learn to make their customers “known?”  What measures do car care businesses need to take to improve their “marketing arts?”  Is the opportunity worth the effort? Are there people and systems that can help?

2. Car care business owners need Smart Partners.  They no longer just need “suppliers.” They certainly complain about equipment makers and distributors that ship equipment to their site, rush to install it and then vanish except for an occasional effort to sell more equipment.  Is there not a variety of ways that the industry, it’s manufacturers, it’s suppliers and consultants can truly help car care business owners to really get to know their customers.  Not once in my hundreds of visits to the “Big Carousel” has anyone ever asked my name or asked to collect my information, or asked if I might like a “membership” or affinity card.  I have observed this same conduct with other brand name and not-so-brand name washes.  Maybe this is not a marketing opportunity and someone could set me straight?

Joe Cameron

“All theory, technique and equipment aside, it is very simple and the same rules apply from manufacturer to wash customer; treat people the way you want to be treated. There is no degree of sophistication in this concept and any business that employs it will ultimately outlast those that don’t.”

National Sales Manager, Kim Supply

jcameron@kimsupply.com

Answer Question 1:

This would be a question near and dear to my heart. I will confess at the outset to a clear prejudice towards customer relationships and customer service. Without a doubt, the single best marketing tool at any service business’s disposal is good customer service. This bears discussion as does the notion that we are in a service business in a service economy.

Our economy, since the late 70s/early 80s has been described as a service economy. Our manufacturing sector largely migrated overseas which left us with an economy built on something relatively intangible like “service.” We make our living providing services for people who make their living providing services for other people. The fact that this state of affairs appears to be something of a house of cards is a discussion for another forum but the overarching concept here is “service.”

Because we are not building widgets that we can demonstrably say are “better” than the other guy’s widget, we have to differentiate ourselves from the competition some other way. We have discussed curb appeal, having good equipment and building the right wash for the right demographic, but the thing we always come back to is service. Even though it may have served to lure them in, it wasn’t having the latest hybrid rollover that earned you loyal customers, it was an exemplary service experience that earned them.  You are providing the service of a clean car and every phase of customer interaction should be designed towards the goal of the superlative service experience.

For a country that relies on a service economy, it is shocking to think that many businesses are not aware of this fact. I think all of us can reflect on some nightmarish customer service experiences of our own and wonder how the offending business manages to keep its doors open.  At the risk of capitalizing on current populist resentments, Wall Street serves as a stellar example of a service failure. They were irrationally confident with their market place, took insane risks many times with their shareholders and investors money, abused the trust of the people that paid them for their service and looked dumbstruck when it all collapsed around them and everyone is howling for their blood. If those key players had placed their customers first, I would be willing to bet a lot of this could have been avoided. Good customer service is not brain surgery; it boils down to the Golden Rule. If you were coming to a car wash for the first time, what would it take to make you look forward to going back?

Obviously, for the purposes of the car wash industry, the level of customer service depends on the type of wash. A self-serve, express tunnel or IBA is not going to require the same level or type of customer service as a full service tunnel. I am going to stipulate to the obvious need for fully functioning entry systems and equipment and focus on the human aspect of customer service.

It is utterly crucial that every single person on your staff that has customer contact is aware that in a very real way, their job depends on making customers happy. Not merely satisfied (because we have learned to tolerate a lot as consumers!) but happy. This is even more the case when we have numerous businesses clamoring for dwindling market share. This then puts a lot of emphasis on the hiring decisions. It is possible to train virtually anyone to dry a car or run a cash register, but it is very difficult to train someone with no people skills to make a customer feel good about their interaction and up-sell the wash package. So for example, when interviewing a potential cashier, resist the inclination to hire the pretty girl that won’t look you in the eye and mumbles just because she has curb appeal. Better to hire the person that is willing to look the customer in the eye, smile, invite them to experience the benefits of a clear coat arch and thank them for their business.

It is difficult in a busy operation to remember an individual customer’s name but I don’t think it is possible to put a price tag on the value of doing just that. How many times have we as consumers gotten a warm, fuzzy feeling from going into a business and having the person at the counter greet you by name? Did it ever fail to make you want to come back? Even if something during the visit went wrong, the collateral that service provider has earned by giving you otherwise superlative, personalized service will most likely keep you coming back.

I have previously mentioned once having had an employer that coined the term “having a passion for the customer.”  Everyone involved in providing the service should posses that. What is even better, there is no need to market it because it will market itself. This is the stuff that word of mouth business is made of.

Having said this, this level of customer commitment does come at a price. Labor costs are always at the forefront of budget considerations and much has been said about ways to cut it. Certainly, there is technology out there that can significantly reduce labor costs but you cannot underestimate the value of the human touch. Even if it is the guy you hire to make sure the wands are hung up and trash picked up, paying a little extra to get the person that is willing to smile at customers and offer to assist them with any difficulties they have in your wash is well worth the price. In other words, if you have to hire someone, go ahead and bite the bullet and hire the friendly person for $12/hour instead of the not so friendly one for $10/hour. The extra $2/hour will more than pay for itself in customer retention while the $10/hour person could very easily wind up costing you far more than the $2/hour you saved! It is usually true with people as in products, you get what you pay for!

Answer Question 2:

As for the manufacturer/supplier and operator relationship, the same rules apply and maybe even more so. Certainly the stakes are much higher. It is the difference between a $10 top wash and a $1.5 million investment. I have hammered on this relationship at length before and the obvious dissatisfaction of wash owners with that relationship. I have heard many shocking stories from within our industry, usually involving suppliers that lead me down the same train of thoughts as when I contemplate Wall Street bankers. A manufacturer may have the best machine in the world that will do everything including wash your dog for you, but if they are not standing behind that with a level of customer service that recognizes the value of your investment, then their great machine is completely wasted. Every link in the manufacturer—distributor—operator chain is crucial to this. Again, personalized service is invaluable and cannot be underestimated.

I would go so far as to suggest that perhaps manufacturers and distributors go through the hiring process amongst themselves.  The manufacturers certainly need to do a better job vetting their distributors and vice versa. The interview process can go a long way to weeding out potentially bad relationships.  If a distributor does not possess the same or complimentary core values as the manufacturer he represents, the relationship will be doomed to failure with the net result of a dissatisfied customer and ruined reputations. Perhaps an industry-wide standard of practice would not be amiss. A sort of Better Business Bureau listing of companies that subscribe to a commitment to customer satisfaction and being honest and ethical in all dealings. All theory, technique and equipment aside, it is very simple and the same rules apply from manufacturer to wash customer; treat people the way you want to be treated. There is no degree of sophistication in this concept and any business that employs it will ultimately outlast those that don’t.

Ryan Beaty

“Continuous improvement is mandatory in today’s environment and those operators and suppliers who embrace will reap the benefits of on-going customer loyalty.”

Vice President of Sales, Mark VII Equipment Inc.

rbeaty@markvii.net

Answer Question 1:

In today’s current environment, you better believe that the opportunity to capture and increase customer loyalty is a worthwhile endeavor.  Consumers are giving more and more thought to each dollar they spend and where they spend it.  It’s still about “value added” when it comes to building loyalty among your customers.  The data has been out there for years that washes who implement incentive programs do drive repeat business versus those who do not.

As technology continues to advance at record pace, the options and strategizes for such programs only get better.  It wasn’t long ago that operators were using punch cards and now we see RFID technology taking hold.  Older methods only produced limited results, limited abilities to specifically individually tailor and track activity, as well as little control due to human error.  Most popular have been loyalty cards that customers may purchase or be issued in which they may receive and re-load them via the Internet or right there at the site.  While these programs will differ by manufacturer as well as business model, the concept is basically the same.  Most programs will allow the operator to run and target promotions, incentives and other opportunities for the customer.  Most will also allow for the card to be re-loaded over and over, however, some will not.  Bottom line, all loyalty card systems are not created equal, but this format of driving repeat business is tried and true.

For those operators who prefer a beefier system or those who like to be on the cutting edge of technology, the RFID system is gaining attention and growing at a rapid rate.  It’s no surprise that this technology offers a plethora of information to the operator, so much in fact, that many operators don’t use all of the functions available.  A small profile, tamperproof tag is installed on the windshield of the vehicle so when it approaches the reader, the vehicle and customer are identified.  As customers approach the pay station, they are recognized and the communication begins.  As it relates to customer loyalty, the operator can deploy special offers, additional services (ala’ carte) and generate automatic payment to a previously established credit or debit account.  The information that operators are able to gain from investing in these systems can be overwhelming, but once this data is put into reports, its value becomes obvious.  Trends and buying habits start to appear and therefore strategies can be deployed much more effectively and hence drive greater results.  This technology has been out for a little while now and most operators will tell you it’s pretty bulletproof and well worth the investment.

Rewarding frequent customers will only build loyalty.  Engaging customers with discounts to return to the wash in short order provide the value consumers are looking for these days.  It’s no surprise frequent customers can be the most sensitive to price points.  There are plenty of options at many different cost levels for operators to choose from out there.  My guess is we will see plenty more attention on this subject in May at the ICA Show as manufacturers strive to give operators that “partnership” many are looking for.

Answer Question 2:
I think it’s safe to say the manufacturers have been getting the message loud and clear, especially in recent years about the demand from operators to get a partner rather than a transaction when purchasing equipment.  Top suppliers have taken note and you are starting to see programs rolled out with the equipment that allows for the back end support after the sale.  For larger, multi site operators we have seen manufacturers adopt what is known is some markets as a “category captain.”  In essence, this position is dedicated to the car wash program of the customer and is responsible for tracking all data associated with the washes, working with the customer on marketing promotions and driving revenue to the wash through other profit centers as the site.  It’s this kind of program which is beginning to set manufacturers apart from one another as operators strive to find their “partner.”

There are also programs popping up for those individuals who only own one or two sites as well.  You’ve seen many companies adopt after sale technical, marketing, operational, and other classes that operators can attend.  There have been many who have said this is what’s lacking in our business and I tend to agree with them.  In order for operators to gain the loyalty of their customers they first need equipment that works, second need promotions and marketing ideas that get customers on to the property and third, need the tools and support to track this data and understand what it means in hopes of continuing to keep these customers coming back.  It’s no longer enough to have a frequent washer’s club.  Operators must figure out the buying habits of their consumers.  Habits such as wash frequency, timing, services purchased, average ticket and so forth are all very important pieces of data.  It’s this data which will allow for much more targeted promotions aimed making the customer compelled to return to the site more frequently.

For those business models that require multiple employees, training is paramount for customer interaction and providing those “little things” that will separate you from your competition.  Customer service is still king when it comes to these kinds of destination operations and here again, there are manufacturers who providing data and ideas on how operators can take it to the next level.  It must start at the top however with owners and managers followed by the trickle down to the employees who “touch” the customers on the daily basis.  The goals need to be clear, preferably written down where they can be seen and also measurable.  In order for success, employees need to be motivated and enthused about their job and the goals they are striving for.  Easier said than done, especially in a business model where turnover can be high, but it’s crucial for customer loyalty.

Regardless of your business model, getting a clean, dry and shiny car is still the name of the game, however, it appears that overall customer experience is driving today’s market which encompasses so much more than just the equipment.  Continuous improvement is mandatory in today’s environment and those operators and suppliers who embrace will reap the benefits of on-going customer loyalty.  Opportunity is definitely knocking and the consumer demand is there, so I believe you are going to see a further separation of those manufacturers who buy into this and support it versus those who do not.

Craig Campbell

“An operator should design and implement a program that he can really follow through with—one which generates value for both the operator and the customer.”

Global Manager of Business Development

Distribution for WAshTec Cleaning Technology GmbH of Augsburg, Germany

ccampbell@washtec.de

Answer Question 1

There is really no need to reinvent the wheel.  Examples of successful customer loyalty and retention programs abound—frequent flyer programs, discount programs, rewards programs, etc.    It is simply a matter of copying one.

Personally, I have always favored the “Buy X, get Y for free” approach—it is simple, effective and doesn’t cost much.  Such a thing can be low cost and low tech—token mailings in a self-serve, printed coupons in an automatic or gated tunnel site.  For a little more money, a card system can be used and integrated with existing payment systems.  The technology is out there, and it is generally not a huge incremental investment.

However, this is a step that should only be taken if the follow-through is there.  If you are not prepared to invest in managing the program and making it a pleasant experience for your customers, don’t start one.  A failed program is much worse than none at all.

I would also make sure you have a clear idea of what you will do with the data you collect.  Don’t start it without a plan, and don’t collect what you don’t need.

Finally, remember that if you embark on such a plan, you are now potentially dealing with confidential information.  Your systems and processes should be sufficient to safeguard this information and use it wisely and professionally—as well as legally.

Answer Question 2:

Of course this is an opportunity.  I believe that it is never a bad idea to give customers a reason to try your services or to come back for more.  The question becomes one of commitment.  An operator should design and implement a program that he can really follow through with—one which generates value for both the operator and the customer.

Again, I favor simplicity in these things—low cost, low tech.  However, the program should be tailored to not only your budget, but also your willingness to keep it up and fresh.  And all of that is a function of what it brings in return.

In other words, we all agree that marketing is a good idea, and programs which both create trial as well as help keep customers coming back are the best way to market.  The real question, however, is how much will it bring to the bottom line compared to how much it costs to create and administer.

Ken Dollhopf

“Car wash operators need to embrace the marketing programs that are available from not only the standard car wash suppliers but also from many other businesses outside of car washing. Do a simple Web search for ‘consumer loyalty’ and many different programs and a large array of marketing help is available.”

VP of Marketing and New Business Development for PDQ

Ken.Dollhopf@pdqinc.com

Answer Question 1:

Consumers are actively marketed continuously throughout the day. This barrage of “selling” leaves many of them cautious and leery of providing personal information. When this is combined with the fact that most car wash operations (self serve, in-bay and automated payment tunnels) never have personal contact with the consumer the challenge to develop a “personal driven” marketing program is very difficult. For wash operations that do have face-to-face interaction with their customers it is a huge lost opportunity to not gather information. I would like to focus my response on the more difficult challenge of developing effective marketing when you do not have personal contact with the customer.

In the in-bay automatic wash segment the interaction between the consumer and the car wash operation is done through the automated entry unit. This makes gathering information difficult when the challenge of the device is to provide ease-of-use guidance through a rather complex sale-and-payment process. The devices also do not have keyboards for the entry of names, addresses or e-mail. So what options are available?

A good approach is to see what you CAN get easily. The device has a numeric keypad and, for the most part, consumers are okay with providing ZIP codes. Other retailers have trained them to provide this information and it is not considered by the consumer as being a “private” piece of information. An entry-station marketing program that would simply ask one in every five customers for their ZIP code would not slow down the line, frequent users would not feel that they are being asked for it all the time, and within a month of use the owner will be able to have good starting statistics about where the customers are coming from.

Sites that do this will immediately be able to answer questions like:

-       How far away are my customers coming from?

-       Are my customers here because of work, home or commuters in between?

-       Does the ZIP code data change between weekends and workdays?

-       Is there a difference between day and night usage?

-       Is there correlation between ZIP codes and average price per wash?

From this simple set of data you can begin to think of the customers at the wash differently. There are patterns, segments and buying patterns that can most likely be seen. Taking the number of washes from each ZIP code and entering them into a visual product like Google Earth will allow you to “see” the customers better. You won’t know where every customer lives, but you can see if there are usage patterns.

Then look into online demographics tools like the U.S. Census Bureau and obtain general marketing information about the ZIP codes: average income, race, housing, education and cars per household. This provides you with a sense of the demographic makeup of the users in each of the ZIP codes. Finally, you should actively drive around in the top ZIP codes if you are not familiar with the areas. Get a real feel of the other retail establishments that are located there and, most importantly, the other car wash competition in these ZIP codes. They are your competition and you need to know about their operations.

From this simple month-long exercise you now should have a much better understanding of your customers. Not each one personally, but as segments of your revenue.

It is clear that the resolution of customer information that ZIP codes provide is not very detailed. There will even be sites that may have 80 percent of the sales coming from a specific ZIP code. It may sound like the activity was wasted because all you found out was that everyone that comes to your wash is from one area. But you can use this information developed and expand it slightly: What are the characteristics of this zip code and is there a nearby area that is similar and has easy access to my wash that I could advertise to increase sales?

Now that the general market is understood you can begin to target some advertising campaigns for the area:

-       Use bill-boards in the prime zip codes with messages tuned to the demographics you have discovered.

-       Setup an online Google AdWords campaign limited to the top zip codes for online advertising.

-       Contact radio stations and see if they have information that says they reach these areas better than other stations.

-       Use online tools like “postcardbuilder.com” to develop direct marketing pieces. They also can develop a targeted list of new homeowners in the ZIP codes.

Although not as personal as individual customer information, this approach for operations that do not have direct customer interaction will have two benefits: you will be able to increase volume by simple marketing techniques, but more importantly, as a business owner you will begin to think about marketing more. This additional skill can then be scaled as far as you want, but at its most basic, it will allow you to understand your customer base better.

Answer Question 2:

There are many tools and companies that can offer these types of service already. The issue is not one of a “killer” application or technology needing to be developed, but rather it is one of car wash operations needing to first realize that retailing in 2010 is not like retailing in 1980. Customers have different expectations today than they did then; most of these are centered on a service company needing to “earn my business” as a consumer. The variety of choices, ease of transportation and overall competitive nature of car washing requires more than just good service to keep customers loyal. Programs have been created by many suppliers to do this, but many car wash operators still want to operate a business where they simply get cars clean and do not have to worry about customers.

This type of thinking is dangerous for a car wash owner. Yes, the basics of getting the services right and having a great offering and clean site are important, but they simply provide the foundation of an operation and are the things that if done right customers simply expect. This is the foundation of the consumer value statement for car washing: “You give me a clean car in a clean, safe environment and I will give you X dollars.” Meeting this value position does not get you new customers directly and it does not keep a past customer. Customer loyalty is more than that; it is centered on developing a relationship that has the basic value being met, but then adding a series of incentives or benefits that will convince the consumer to continue to do business with you.

Car wash operators need to embrace the marketing programs that are available from not only the standard car wash suppliers but also from many other businesses outside of car washing. Do a simple Web search for “consumer loyalty” and many different programs and a large array of marketing help is available. This branching outside of the traditional suppliers can help demonstrate what is available and being used by other retailers.

The availability of technology and Smart Partners is not what limits many car wash operators from beginning a real loyalty-driven marketing program; it is often the fact that many operators think of their businesses like the famous movie said, “Build it and they will come.” This thinking does not work today. Consumers are looking for more than basic value in exchange for their loyalty. Operators must realize that they need to be real retailers in order to grow. Marketing programs exist from many sources, but there also will be real costs associated with these. The key to the success of your business is to make sure that you have metrics and budgets in place that are truly able to show improvements from any new campaigns.