Turning Washes into Relationships: How Loyalty Programs Are Reshaping the Carwash Industry
By Meline Beach
For decades, the carwash industry was highly transactional and business was weather-dependent. Today, subscription models have reshaped the industry in an effort to create a loyal customer base and offer predictable monthly revenue as a year-round business.
According to an IBISWorld, the Canadian carwash and auto detailing industry generated around $1.5 billion in revenue in 2025, growing at roughly one per cent annually over the last five years,
While this growth rate illustrates scale and opportunity, loyalty programs is a central driving force for success.
Value and Routine
Northern Lights Carwash is an independently owned, Manitoba company with over a decade of experience in the industry. They take pride on being the province’s “most technologically advanced carwash” and feature a carwash club with a loyal customer base. It’s not just a feature, it’s their foundation driven by convenience.
“As an express exterior wash in a competitive market, we know we can compete on both speed and convenience,” says Tom van der Breggen, manager of Northern Lights Carwash. “We offer three monthly unlimited membership tiers designed to suit different customer preferences and vehicle care priorities.”
The three tiers: The Quality, featuring soap application, underbody flush, and a nine-blower dry; The Great, featuring everything in The Quality, plus undercarriage wash, three-step wheel cleaning, Rainbow Coat protectant, and an 18-blower dry; and the premium package The Works, featuring everything in The Great, plus rust protection, Red Hot Lava foam, hot wax, Ceramic Tru Pearl, and graphene coating.
“Each tier is designed to offer clear value progression, allowing customers to choose the level of protection and finish that best fits their needs,” says van der Breggen. “All members also receive access to complimentary on-site amenities, including high-powered vacuums, drying towels, and a self-serve mat washing station.
According to van der Breggen, these added services enhance the overall value of the membership and contribute to a more complete vehicle care experience, stressing that value comes before loyalty.
“We believe loyalty begins with the value of the wash and the experience you create,” says van der Breggen. “If you don’t have a great product and great customer service, you won’t get loyalty either way. If you can provide the value, that is where the loyalty grows single wash customers into members.”
Convenience brings customers in, but consistency and experience keep them coming back.
“By combining speed of wash with a simple unlimited membership model, we position car washing as part of a customer’s routine rather than an occasional chore,” says van der Breggen. “Members can wash their vehicle on their way to work, during a lunch break, before a meeting, or anytime they are driving by. That convenience, paired with consistent quality, is what builds long-term retention.”
Predictable Revenue
Town Wash Holdings operates numerous carwashes in the United States under the brands Sud’s Factory Car Wash and Drip Drop Car Wash, both of which offer membership and single-wash options. For Sud’s Factory, customers can choose from four unlimited membership tiers ranging from basic to ceramic. Drip Drop offers three unlimited options, with both brands noting that two visits per month covers the cost of membership.
According to Charlotte O’Connor, membership and sales manager at Town Wash Holdings LLC, the move to membership was driven by financial security.
“We operate a membership-based model with unlimited washes and free vacuums for a monthly fee,” says O’Connor, who notes their non-contractual, month-to-month approach with no sign-up or cancellation fee builds significant customer loyalty. “Membership provides a predictable, steady stream of monthly income, which offers far more stability than relying solely on non-member traffic.”
Once a membership is sold, customer activity may vary. O’Connor notes that about one-third of their members visit three to five times per month, while the remaining two-thirds visit one to three times or not at all in a given month. That lower-frequency activity works in the operator’s favour as fewer visits mean less soap, water and labour consumed, while monthly revenue remains intact. While non-members may generally pay more per visit, O’Connor adds that there are still upselling opportunities for members, such as wax, tire sheen and ceramic coating, which adds incremental revenue on top of the base membership fee.
Subscription models also play a stabilizing role in an industry where seasons heavily influence how often customers visit. In colder months, road salt and slush tend to drive more frequent washes, while milder seasons may see a dip in traffic. By locking in a flat monthly fee, operators can secure a predictable revenue stream that holds steady regardless of weather patterns or seasonal slowdowns, which help smooth out the peaks and valleys that have traditionally made cash flow harder to manage.
Technology
Securing that revenue requires the right tools to manage it. Today’s loyalty programs are beyond punch cards. The investment required depends largely on how sophisticated an operator wants the program to be. Modern programs use technology to automate the customer experience, from mobile apps and automatic billing to licence plate recognition (LPR).
“At Northern Lights, our membership platform is fully digital to create the most convenient experience for our customers,” says van der Breggen. Members manage everything from sign up, upgrade, downgrade, and pause to canceling or updating their vehicle information using an app integrated directly with the company’s POS system and LPR cameras, all without staff intervention. “When they arrive, the system scans the plate, opens the gate, and grants access automatically, signalling which wash package that member should be receiving.”
The integration of digital tools has become the norm for membership management, enabling seamless entry, billing and marketing across a member base. Costs can include software subscriptions and credit card processing fees, in addition to operating expenses.
“That said, a membership program does not need to start at this level of sophistication,” says van der Breggen.
O’Connor adds that beyond technology, success also depends on a staff’s selling skills; marketing with proper signage, posters, and handouts detailing membership packages; and internal management, citing that third-party companies or CRM services may charge a fee (up to 10 per cent of monthly membership income). “The investment is highly worthwhile as the predictable income far outweighs the expenses,” she says.
Neither van der Breggen nor O’Connor suggest that operators need sophisticated systems at launch. Van der Breggen suggests that many programs can start simple with manual tracking to gauge customer demand before scaling technology.
Customer Experience
One of the most common challenges with a membership program is around commitment and pricing.
“One key decision we made was to avoid fixed contracts,” says van der Breggen. “Members can pause, cancel, upgrade, or downgrade at any time. That flexibility removes a common friction point and significantly reduces dissatisfaction. When customers feel in control, complaints decrease dramatically.”
Van der Breggen adds that customer education has been a primary challenge. “While our digital system is efficient, not all customers are comfortable with app-based enrollment. We found that walking customers through the setup during signup greatly reduces future frustration. Once properly onboarded, members become highly self-sufficient. Technology works best when paired with strong customer service.”
O’Connor agrees. Beyond the odd technical glitch due to internet outages or LPR errors, the main challenge is the staff learning curve. She says, “Attendants must be trained on a ‘perfect pitch’ to sign customers up quickly.”
Unlike anonymous retail transactions, membership programs offer operators insight on frequency, wash preferences and seasonal behaviour that can inform pricing and service enhancements. A well-run loyalty program can also generate valuable, genuine engagement.
“One of the most valuable benefits has been developing a large base of engaged regulars,” says van der Breggen. “The membership base has become an ongoing feedback loop that helps us refine operations and address small issues before they become larger problems.”
O’Connor adds, “The most beneficial feedback is the positive affirmation from members regarding the value and convenience of the service. We also use these interactions to encourage Google reviews, which serves as a powerful marketing tool to drive new business.”
Membership programs are rapidly becoming industry standard, highly recommended by both van der Breggen and O’Connor.
“I would never own a carwash without a membership program,” says O’Connor. “My advice is to research similar washes on social media and professional forums to see what platforms work best for their specific scale.”
Van der Breggen offers a measured perspective: “Your profit per wash may go down but if you are confident in your ability to continually provide an exceptional experience to grow your customer base it can be successful. With exceptional product quality, speed and customer service, membership becomes a natural extension of your business that can create sustainable growth.”
Meline Beach is a Toronto-based communications practitioner and frequent contributor to Convenience and Carwash Canada. In addition to freelance writing, Meline provides communications and public relations support to businesses across Canada. She can be reached at www.mlbcomms.ca.
