How to Leverage the Summer Surge to Build Customer Loyalty

Most people get car washes three or four times a year, wherever convenient, and pay about $10 for the service. But car washes have become much more profitable thanks to a new customer loyalty tactic: Subscriptions. With a $20 per month subscription, not only does the average person’s car wash bill increase from $40 to $240 per year, but they also become loyal to one brand. This tactic is turning the sleepy mom-and-pop industry into a $1.5 million-per-location gold rush.

To boost your top and bottom-line results, customer loyalty tactics like this and exceptional service can transform your shop from a one-time stop to a lifelong destination. Summer, with its increased car usage and heightened maintenance needs, is the perfect time to capitalize on these strategies.

Exceptional vs. Expected Service
The best customer loyalty programs are worthless if you don’t provide an exceptional baseline service. Customers expect you to repair the vehicle on time and within budget. So, “getting it right the first time” isn’t exceptional service—it’s the expectation.

Exceptional service means “wowing” the customer. With the summer surge, consider these seasonal touches:

• If you notice the vehicle is dirty, arrange for a car wash or interior cleaning before returning it to the customer.
• If it’s a little low on gas, consider topping off the tank.
• Leave a mint and a handwritten thank you on the dashboard.
• Offer premium snacks and beverages or toys for children in the waiting area, making the summer wait more pleasant.

These small acts can be seen as going above and beyond, encouraging repeat business. You can build these small costs into the price of repairs to ensure they don’t eat up your margin.

It’s Not a Job, It’s a Customer
Imagine a first-time customer who comes in for an oil change or tire rotation during the busy summer months. Some shop owners would view the customer as a one-time job for a low-margin oil change—but that would be a huge mistake.

The average driver incurs at least $800 per year in maintenance costs, including oil changes, tire rotations, multipoint inspections, and unexpected repairs. And that number goes up for older vehicles that may need more repairs. Savvy shop owners see an opportunity to win over $800+ of business annually. While the oil change might be a low-margin job, capturing that customer’s higher-margin spending over the years is an opportunity. The next time they visit might be for a more costly repair.

• A free car wash with each visit or after accruing a certain number of points.
• Special member-only discounts on regular maintenance or repairs.
• Partnerships with local businesses like gas stations or insurance companies to expand perks.

There are many ways to structure these programs.  Examples from AutoLeap include:

• Punch cards: Customers receive a punch card, and after returning it a certain number of times, they receive a gift or service.
• Points programs: Customers accrue points with each purchase and can redeem them for gifts or discounts.
• Tiered memberships: Customers can choose between multiple membership subscriptions with different perks and discounts.

Automate Your Follow-Ups
Do you remember your next dentist appointment? Of course not! You probably rely on automated email or text message reminders. Auto shop software makes creating loyalty programs easier than ever, automating follow-ups with customers and reducing friction with online appointment scheduling. At the same time, you can use these platforms to share exclusive discounts and promotions or incentivize them to refer friends, family, and colleagues to drive word-of-mouth marketing.

For example, solutions like Kukui or ShopMonkey enable customers to book appointments online, conduct digital vehicle inspections, and send automated text messages and emails. This results in a much more streamlined experience than repair shops relying on phone calls and handwritten schedules. The key to success is taking the time to properly set up and optimize these solutions to deliver the best results. Additionally, you should carefully consider your margins when developing rewards programs to ensure you’re not sacrificing too much profit to book revenue.

Measure & Improve Over Time
Management expert Peter Drucker once said, “You can’t improve what you don’t measure.” Many software applications automate the collection of these metrics, but you can also use surveys and other techniques to gather the information.

Some KPIs you should track include:

• Repeat Customer Rate: The ratio of new customers to returning customers over time. Generally, you should aim to lower this ratio over time as more repeat customers come in for business.
• Referral Sources & Rates: Tracking your referral sources and rates can help assess customer satisfaction. A high referral rate indicates that you’re delivering exceptional service, which results in more customer loyalty.
•  Customer Satisfaction: Simple surveys, such as Net Promoter Score (NPS), can tell whether customers are satisfied. According to NPS creators, scores above 20 are favorable, and above 50 are excellent.
• Average Revenue per Customer: Try to constantly improve the average revenue per customer, especially for new customers coming in for low-margin services. These metrics can tell you about the success of your upselling activities.

You should also ensure that introducing loyalty programs doesn’t negatively affect your overall P&L. For example, if you see strong revenue growth but a drop in profits, you may consider reducing the discounts or increasing prices.

The Bottom Line
It’s hard to overstate the value of customer loyalty—just look at the transformation of car washes from a mom-and-pop business to a $1.5 million per location industry! By investing a little extra time in building membership programs and capitalizing on the summer surge, you can capture more of the $800 per year that the average person spends on car maintenance.

About the ATI Experts 
ATI Experts is a team of experienced ATI coaches who collaborate to write industry articles. They leverage their extensive knowledge and proven success to provide actionable strategies for improving the performance and success of repair and collision shop owners.