Case Study

Building a Better Car Wash with Technology as the Foundation

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Xtreme Clean Auto Wash

Xtreme Clean opened their first location in Traverse City, Michigan in 2004 and quickly realized solid business results. So well, in fact, that they knew they could — and should — expand. "We realized early on that anyone can buy land, anyone can buy equipment," says Nate Kessler, COO at Xtreme Clean. "It's the management that's the hard part."

"We're not your typical car wash. We want to make sure we're staying ahead of the technology curve in the industry."

To drive their expansion, they needed something absent from the many outmoded and anonymous car wash operations that litter the Michigan landscape: They needed a brand. Something people would recognize, trust, and rely on. Not just a logo, but an identity that would help them stand out as a forward-thinking, customer-service-focused operation. As Nate notes, "We're not your typical car wash. We want to make sure we're staying ahead of the technology curve in the industry."

Adopting an App-First Approach

We created a custom-branded mobile app for Xtreme Clean that wedded their desire for quality customer service with easier, more convenient payment methods. Not only does their Mosaic app process credit card payments, special care has been made to ensure that it's user-friendly. "There are a lot of mobile apps out there that are clunky. Too wordy. Mosaic's is very clean," says Nate. "We want purchasing to be very easy and user friendly, and the Mosaic app fits with our brand as if we designed it ourselves."

The app has not only helped them increase and stabilize revenue, it's a positive step away from outdated technology and toward the holy grail of car-wash payment processing: a fully cashless, fully self-service subscription model. "We see all markets moving toward cashless, which we love. The more we can get away from cash, the better," explains Nate. "We need as little friction as possible for customers to pay."

When customers purchase through the app, every transaction that comes in includes a breakdown of product costs, taxes, any fees applied, as well as what gets paid out to the car wash. Using Mosaic's financial reporting tools, they're able to compile comprehensive numbers and accurately predict revenue.

The Power of Subscriptions

Like so many car wash operators Mosaic works with, Xtreme Clean was especially excited about the idea of ongoing subscriptions. "When we integrated Mosaic, there was a subscription functionality already built in," observes Nate. "What we love about monthly packages is that we don't care if it rains or snows or if it's sunny out. If someone's paying the same dollar amount every month, it helps make our revenue more predictable and keeps our customers happy, too."

"With a Mosaic app, you're providing the customer a way to use their own screen, and they upgrade it themselves every two years."

Of course, the road to fully frictionless everything isn't a straight path. Xtreme Clean still must support their existing technologies. "We push our customers to the mobile app, but we still have older technology for clubs as needed. Our mobile app is as easy as downloading, enter their credit card and they are ready to wash. This helps cut down on labor and administration.”

Given the choice, how often do Xtreme Clean's customers choose the mobile app over older technology? "Nine times out of ten," says Nate. That kind of back-pocket customer convenience stands out in an industry that constantly wrestles with equipment obsolescence. "With a Mosaic app, you're providing the customer a way to use their own screen, and they upgrade it themselves every two years."

Marketing with Mosaic Insights

Xtreme Clean's investment in an app-first approach also helps them deal with the biggest unpredictable factor in the car wash industry: inclement weather. "We staff around the weather. We want to drive demand when the weather's bad. Because we run as an in-bay automatic, we can only wash 10-15 cars an hour per bay, whereas a lot of tunnel car wash providers can wash a hundred plus cars an hour. When it's nice out, we're at capacity."

This desire for flexibility around customer demand has encouraged them to experiment with promotions and dynamic pricing based on the insights they've gained from the Mosaic app. "With the ability to send out push notifications, we can communicate with our customers and direct demand by offering time and weather discounts, in real time."

"With the ability to send out push notifications, we can communicate with our customers and direct demand by offering time and weather discounts, in real time."

They've become so accurate at staffing around the weather that they're able to get within one or two percent of actual wash volume year over year. That's pretty impressive when you're talking about hundreds of thousands of washes during sometimes finicky Michigan weather. "We're open 24 hours a day, but we use a third of the labor of a typical wash operation," says Nate.

That kind of data-driven management is important when it comes to driving bottom-line business results. "We don't have gas sales or convenience store sales to fall back on. This isn't an accessory to one of our other businesses. It is our business. Mosaic understands that and works with us to maximize our customer service, our revenue, and our growth."

We love Xtreme Clean's no-nonsense approach to business because it's all geared toward taking advantage of technological efficiencies to make life more convenient for their customers. Nate's value proposition sums it up well: "I want someone to be able to pull up on site, pull out their mobile app, and order without having to even roll their window down," explains Nate. "We're trying to make it as easy as possible for people to get a car wash."

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