The car wash industry is growing at a rapid rate and is expected to increase by almost 6% between now and 2030. This is driven by the increased market demand for facility-based car wash services as opposed to home washing. About 70% of car owners preferred car wash facilities compared to home washing in 2020, and this figure has likely increased during the last few years.
Such accelerated growth presents unique challenges for car wash brands, especially when it comes to acquiring new customers and creating a stronger sense of customer loyalty with existing customers. These challenges include increasing market competition, shifts in consumer preferences, and digital integrations that increase the speed and convenience of services.
Fortunately, the right customer experience insights can help car wash owners do more than simply respond to customer sentiments or feedback—they can actually help owners get ahead of where the industry is going. Here, we’ll look at a couple of reasons why car wash brands need actionable CX insights more than ever to help boost revenue and increase market share.
The need for speed
Today’s car wash customer seeks speed—in the actual car washing process and in the ability to streamline actions via digital technology. For example, car wash customers expect brands to provide service updates and notifications when service on their vehicle is complete.
Additional technology advancements are also driving this need for speed. Cashless or digital payment methods make the car wash experience faster and more convenient, and the continued growth of self-service car wash facilities—a market that is expected to increase by more than 5% by 2030—puts more emphasis on integrating easy-to-use digital ordering and self-serve kiosks.
Without a CX platform that prioritizes customer satisfaction surveys or other feedback opportunities, car wash brands lack the customer journey analytics necessary to understand if their technology is working for them or against them. And this can significantly affect KPIs like average customer spend and customer return cycle.
Shifting consumer preferences
From desiring more sustainable products and processes to expecting more amenities in the waiting area, today’s consumer preferences are changing. Many of these shifts in consumer preferences are driven by larger trends in commerce, particularly those centered on convenience and value.
Car wash brands are using customer satisfaction data by location to account for shifts in consumer preference and increase satisfaction scores across an entire organization. The ability to view CX data at the brand level, at the regional level, and at the level of each individual location makes it easier to identify strengths and weaknesses at specific locations—and use those insights to increase consistency.
Providing a more consistent, satisfying experience can help drive customer retention and loyalty, and turn new or existing customers into advocates for your brand.
Consumer cost concerns
Overall value is one of the most important considerations for customers when deciding their car wash brand of choice. And with more than 8 million vehicles in the car wash pipeline each day in the U.S., car wash brands can’t afford to ignore consumer costs.
The challenge is navigating the thin line between increased operational costs and consistent pricing structures that customers come to know and rely on. Market forces like inflation, supply costs, and labor shortages have created significant profit margin pressures, which have also made it difficult for car wash owners to offer a full range of services.
True CX insights that are detailed and timely, account for industry context, and create a data-driven path to meet consistency and customer satisfactions benchmarks are key in helping brands better understand the services consumers actually value. This insight makes it easier to identify areas for cost savings by eliminating or altering services to which customers are less receptive.
SMG’s experience in the automotive services industry and powerful CX software can help car wash brands create a more spotless customer experience, increase revenue, and seize growth opportunities.
Download our new guide to learn why automotive services brands need CX insights now more than ever.
