Transforming the car wash industry through digitization

We speak with representatives from Superoperator and Beacon Mobile, global providers of digital solutions for car washes, to discuss how their products have impacted the market and what’s the next step in the evolution of the sector.

Digitization has proven its effectiveness to transform the car wash market for some years now. This modernization involves implementing new technologies to interact with customers and amp up management operations, resulting in major improvements for this traditional sector on both ends. How was this transition achieved?

Digitizing the car wash experience

There are as many approaches as manufacturers when coming up with digital solutions to improve services and create new business opportunities. What is the thought process behind the creation of these tools? How are they created, developed and implemented effectively into the car wash sector?

“It was back in 2012 in Kuopio, Finland, when my co-founder, Jukka Hallman, and I talked about digitalisation and how to disrupt businesses in general. After qualitative research and discussions we ended up with a subscription model and a simple, easy way to wash a car - just drive to the location, select a wash program by pushing one button and that’s it. The concept developed very soon and in 2015 we entered the market as the first company in the world with a ‘Just swipe and wash – with your smartphone app’ service. You just choose the car wash site and the wash program, drive to the site and your license plate will be recognised, and then you can start the washer just by swiping in the app,” explains Erkki Aminoff, CEO of Superoperator, a Finnish technology company that develops, sells and markets their car wash solutions and platform as SaaS, connecting car washes with drivers and virtual network operators.

While some companies started by focusing on the simplification of the customer journey, others began by finding new ways to assist operators. Revamping management involves not only upgrading operations but attracting brands into integrating the technology as well. A different approach than adjusting to what clients expect from a business but with the same goal - modernizing a traditional business.

“We started by creating mobile apps in 2009. Our goal was to make mobile apps and software solutions accessible and affordable for all car wash operators. Since then, technology has evolved in ways we could only begin to imagine. We are constantly looking at ways to enhance the consumer experience at different types of car washes using mobile technology and to meet consumers’ growing expectations,” describes Alan Nawoj, Founder and CEO of Beacon Mobile, a California-based mobile technology and complementary solutions provider.

Erkki Aminoff, CEO of Superoperator | © Superoperator

How to leverage new trends and business models

The pandemic pushed companies to enable new ways of interacting with customers. Touchless transactions and mobile integration are quickly becoming the new standard, with no signs of going away, according to Nawoj. Suppliers are taking this opportunity to develop new, touchless ways for consumers to interact with the wash leveraging the latest technological advancements, even prompting some car wash operators to go completely cashless.

A fast and personalized car wash service can complement the transition that the fuel retail market is undergoing. Forecourts are transforming their businesses by amping up their convenience stores amenities and expanding their energy offerings. Expanding their car wash services can help their transformative strategy.

Suppliers such as Beacon Mobile see this process as an opportunity for fuel and convenience retailers to create additional revenue streams through car wash services. They believe that if operators upgrade their washes with better technology it can help in creating a synergy between both sectors. The use of apps to offer discounts and benefits can drive product sales through cross promotions.

With sustainability becoming a major issue for the automobile industry, car wash operators have had to take a hard look at the use of water and chemicals. Subscription models are a big part of the debate as they let customers carry out a high number of washes in short periods of time. This has led drivers changing their washing habits, more inclined to wash relatively clean cars.

Suppliers see this as an opportunity to scale their tools and provide precise and controlled water application that help brands be more sustainable. Companies like Superoperator are confident in the possibility of developing technology that can detect the dirtiness of a car and implementing automation to select the right wash program for customers.

An outlook on the future through automation and connectivity

On the management side, touchpoints can provide enough customer data for operators and owners to adjust and personalize their strategy. Business intelligence's effectiveness also sets up the stage for implementing automated solutions on a wider scale. In addition, connectivity has the potential to integrate services and apps to smartphones and vehicles, as smart dashboards keep gaining momentum.

“Data is the key to optimizing your wash and achieving maximum profitability in the car wash industry. For Beacon Mobile, we are constantly looking at how we can incorporate machine learning into our solutions to help car wash operators extract useful patterns from which they can make decisions. It is equally important for us to present this information in ways that are accessible and understandable to those of all skill levels,” adds Nawoj.

“We did our first in-car pilot last year with a big German OEM and the user experience is just mind blowing. We are now working towards a car dashboard connection so that any car brand can use our digital car wash network and start washes from the inside. Even the driver’s voice could be used as an initialisation. Superoperators vision is to offer one API to connect every OEM or other brand,” concludes Aminoff.

Digital technology is still far from reaching its full potential. Many new applications need time to achieve proven results. Digital tools need to be paired with an adequate strategy to take a business such as car wash to the next level. The transformative impact of digitization is only limited by the creativity of suppliers, the willingness of operators and the needs of customers.