The Numbers Guy Looks at the Automatic Recharge Module®

Pass Customers Average 1.85 Monthly Visits At This Full-Service

The Quick Overview

This full-service site washed over 10,000 cars in March. About 60% of this traffic was from monthly pass members. Monthly pass holders visited an average of 1.85 times in March. Based on what these customers paid for their monthly pass plans, this averaged out to $23.70 per visit for monthly pass holders. The site’s total revenues from the sale of pass plans in March was $143, 805.35. Slightly over 6% of the wash’s monthly pass users (202 customers) dropped out of the plan in March. On the other side of the coin, 335 new customers enrolled in the monthly pass plan during that period.

Here Are The Numbers:

Wash Profile

Full-Service in Mid-Atlantic Market

Length of Time Offering Unlimited

Passes

About 3 Years

Number of Active Pass Holders

as of 4/1/08

3,279

Recharge Method

Passes Recharged First Day of Month

Total Cars Washed in March

10,601

Total Unlimited Pass Redemptions

in March

6,066

March Pass Plan Sales

(new and recharges)

$143,805.35

Average Visits Per Pass Holder

in March

1.85

Average Per Car For Pass Holder

Visits

$23.70

New Pass Plan Enrollments

in March

335

Pass Holder Terminations

in March

202

Net Gain of Pass Holders

+133

 

Unlimited Monthly Pass Plans Offered at the Site Studied By Numbers Guy:

Plan

Price

Percentage of Pass Holders

ARM VIP Super Recharge

$46.90

0.2%

ARM VIP Full Recharge

$44.90

19.1%

ARM VIP Mid Recharge

$43.90

30.7%

ARM VIP Reg Recharge

$39.95

50.1%

 

The Bottom Line From The Numbers Guy

In this case at least, offering unlimited monthly passes didn’t lead to customers abusing the program. With an average of under two visits a month, customers certainly aren’t “over using” their passes. The moderate return rate of monthly pass holders has resulted in a relatively high dollar per vehicle average of close to $24 for monthly pass customers. These customers apparently don’t mind paying a premium for their monthly passes, since only about 6% of them dropped out of the program. The rate of new customers entering the program was about 1.7 times higher than this dropout rate.

Apparently, customers value the benefits of monthly passes enough to be willing to pay more per visit. What are those benefits? First, there’s the sense of control that comes from knowing they can get their vehicles washed whenever they want. Second, there’s the freedom of never having to worry about having enough money on hand when they visit the wash. And third, there’s the convenience of not having to remember to renew their pass plan every month.

Harold Guthrie, denizen of the digital world, is the DRB Systems numbers guy. A graduate of the University of Akron with a degree in mathematics, Harold toiled for IBM before he came to our company in 1994. A consummate numbers guy, he has conducted numerous engineering studies on a wide variety of SiteWatch products. When it comes to figuring out the meaning of figures, Harold is clearly our number one choice. He can be reached at 800-336-6338.

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