Liquid Barcodes

Resources

Circle K Car Wash Subscription Concept Proves Commercially Compelling

Paula Thomas, Chief Content Officer, Liquid Barcodes

11/22/2020

Having recently climbed to 183rd position on the prestigious Fortune Global 500 ranking, Couche-Tard is a Canadian company that is best known for its extraordinary scale across the US and international markets, where it operates gas stations, convenience stores, and car wash services such as Circle K.

With more than $54 billion in sales in its 2020 fiscal year, Couche-Tard and Circle K stores together operate a network that prides itself on a de-centralised operating structure and decision-making as well as a culture of entrepreneurship, with a mission “to make their customers’ lives a little easier every day” by offering a seamless customer experience.

And it’s this spirit of innovation that seems to drive Lars Hecht, who was appointed Global Lead for the car wash category for Circle K in 2016, and since then, has guided the business through the complex yet compelling journey to carefully evaluate and eventually adopt a whole new business model – car wash subscriptions.

Circle K is certainly famous with consumers for its fuel and convenience stores; however, it is also widely respected through the convenience industry as the world’s largest car wash network with 2,750 locations across Europe and North America. As a brand, it demonstrates a strategic focus on the category in the way we’ve written about previously in our article “Why Car Wash is CEO Agenda”.

Car Wash

After introducing his colleagues to the power of subscription programmes in 2016, Hecht has been instrumental in leading the development of a world-class concept that has been successfully implemented in test markets in Denmark, Canada, and across North America.

In this article, we share some of his insights from the initial idea in 2016 to the success of the subscription-based car wash business today. And Car Was is in the CEO Agenda.

Lars HechtLars Hecht – Global Lead, Category Director at Circle K

Hecht highlighted that he is directly supported by a talented global car wash team including regional and business unit car wash managers as well as an extended team of analytics, marketing and operations colleagues whose support has been invaluable. 

Why Subscription?

The context for car wash in 2016 is a familiar scenario for many business owners. Circle K was relatively successful at maintaining profitable prices with its car wash customers, but by protecting margins, sales volumes had stagnated, so Hecht started to explore a new concept that could drive both.

The subscription model was operating in several other industries, but it seemed that only companies with a monopoly in their sectors such as Amazon or Netflix were truly proving their power. And yet, Hecht was confident that the model could work, given how well it aligned with the needs of Circle K’s global business.

Subscription Strategy Insights:

  1. Customers want to wash their cars as quickly and as easily as possible. Anything that reduces the steps needed along the way increases their overall positive perception of the brand. Eliminating the need to go in-store to buy a car wash code brings “true convenience”.
  2. Customers love the idea of “unlimited” benefits from their subscriptions with Amazon and Netflix, so unlimited car washing promises equally positive experiences for customers.
  3. Subscribers are known to spend on impulse when they are near a convenience store for gas or car wash, so it was reasonable to expect some cross-sell and up-sell from car wash subscribers.
  4. While Hecht had no reason in 2017 to expect that customers would want 100% contactless solutions so soon, given Covid19 concerns, Circle K’s subscription product has now become an important way that the company is helping customers to wash their cars safely and easily by simply scanning a QR code, so no touch is needed.
  5. Most importantly, a subscription program allows Circle K to set targets for a 100% share of their customers’ “car wash wallet” as no subscriber will ever go to competing for car wash service once they’ve subscribed to one. By being the first to launch the product in most of the convenience markets that Circle K operates in, it could measurably increase the lifetime value of each car wash customer, resulting in “extreme loyalty”.

With so many compelling benefits, Hecht saw great potential in the power of subscription and while he admitted that at first, it felt like “stepping on ice”, he worked alongside his team to learn, evaluate, model and analyse, the potential for subscriptions, until Circle K launched its first programme in January 2018.

Statistcs of Car wash program comercially compelling

Well-known and respected for its fuel and convenience stores, Circle K is also the world’s largest car wash network with 2,750  car wash locations across Europe and North America.

Why Liquid Barcodes?

When Circle K was clear on its business objectives and needs, it went in search of a global partner that could build its car wash subscription concept and ensure the consistency and flexibility it needed globally.

Everything about the technology solution they needed was different. From the unique product functionality within the app, to the process of recognising customers, as well as a requirement to use the geolocation of the mobile phone in combination with the outdoor payment equipment.

Circle K wanted to minimise investment in hardware, and with no existing solution in existence, a unique system would have to be designed from scratch with the chosen vendor.

Even more importantly, Circle K needed a platform that could capture, simplify and report detailed analytics from its global car wash business in order to succeed.

Hecht found very few suppliers with the capabilities he needed. Liquid Barcodes was the only European-based company shortlisted and also proved to be a company that shared the entrepreneurial mindset that Circle K values so highly.

After its global research and evaluation, the “spirit and attitude of the Liquid Barcodes team, its global capabilities and willingness to support the complex and evolving needs, combined with a fair and competitive price structure” resulted in the mutually beneficial appointment of Liquid Barcodes as the global partner chosen to support this world-leading innovation.

The project team eventually included global industry leaders Braintree (a PayPal service) which support the subscription payments, as well as the car wash machine teams in DRB Systems / Unitec in North America, and Washtec in Europe, as other essential partners that made the project possible.

Circle K App

After two years of learning, building, testing and evolving, the Circle K subscription car wash concept has become an outstanding success

Concepts

With differing IT infrastructure in each country worldwide, and vastly different customer expectations, Circle K has now tried and tested various technology models and marketing approaches to adapt to local needs.

In the US, the car wash subscription program has been built as a stand-alone app that can be integrated into the new generation app from Circle K at any time, however, in Quebec, Canada and Europe, the subscription platform is being integrated into existing Circle K loyalty apps, such as the Circle K Extra app in Denmark.

Customer options also vary by market – for example, in Canada, customers can choose from three different packages of unlimited washing. The app gives customers the ability to upgrade or downgrade their subscription at any time, and behind the scenes, the Circle K team uses the Liquid Barcodes platform to seamlessly manage the automatic monthly billing, as well as the pricing and promotions.

With the consumer subscription product selling well and enjoying high retention rates, Hecht and his global team are now also testing new multi-user concepts such as family plans and business plans. Once again, Circle K is the first car wash retailer in the world to launch these innovative products.

Car wash subscriptionNew subscription concepts include family and corporate subscriptions for car wash customers.

Learnings

Despite the complexity of the project, Hecht is very satisfied with the results. He shared that while the fuel category suffered a double-digit decline during the Covid-19 lockdown in certain markets, the car wash business did not suffer nearly as much, with subscribers proving considerably more loyal to the brand throughout.

Educating staff and customers is an ongoing priority, and Hecht has seen great results using “activation teams” on the forecourts, who enjoy meeting customers, explaining the concept, inviting the customer into the car wash with a free wash (from the app of course) and helping ensure they are fully set up with their preferred subscription programme for the future.

Most importantly, two years in, Hecht and his team are pleased to have found a way to drive both volume and margin. The subscription solution has provided the framework he needed to actually “make customers’ lives easier” and he particularly enjoys how subscribers buy more premium products, resulting in a significant lift in the car wash portfolio.

car wash circle KThe Circle K car wash category is growing from strength to strength, powered by subscription success.

Future

The subscription model is certainly proving to be a powerful driver for the car wash in Circle K. Hecht believes it will continue to grow and hopes to add senior dedicated resources to his team to ensure its continued success.

From a partnership perspective, Hecht has been impressed by the support and attention from the operations team in Liquid Barcodes and from our side, we are delighted to be supporting and enabling this extraordinary brand and team with their vision for success.

Building on their mission to “make customers’ lives a little easier every day”, this article hopefully showcases how easy car wash growth can be when it’s powered by subscription.

Circle K logo

About Us:

Liquid Barcodes is a leading global loyalty and digital marketing technology company specialising in the convenience store and food service industries. Our proprietary cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with a proprietary process we call the “customer connection cycle’ to engage, promote and reward customers’ activities in real time across digital and media channels.

How we do it:

We have developed the most advanced loyalty and digital marketing technology platform specifically for convenience stores and food service retailers globally.

Retailers use our self-service dashboard to create and manage loyalty-driven marketing campaigns that increase purchases with their existing customers, as well as effectively target and acquire new customers through partners or paid media channels.

One core component of live loyalty is gamification. We have gamified branding, loyalty and promotions. We believe this approach is essential in order to get customers’ attention and ultimately truly engage them with repeatable actions thereby winning their loyalty.

Check out some of our exciting/proven results here:

www.LiquidBarcodes.com

About Me:

Paula Thomas

Chief Content Officer, Liquid Barcodes and Independent Loyalty Consultant

With over twenty-five years of marketing experience, I specialise in loyalty marketing consulting, managing consumer loyalty propositions, strategy and operations. In addition to working with Liquid Barcodes, my clients have included Telefonica O2 Priority, Three Mobile, Electric Ireland, Allied Irish Bank and The Entertainer Group (UAE), as well as Avios – the global points currency for some of the world’s top airlines. I am also a former judge for the Loyalty Magazine Awards and host of the “Let’s Talk Loyalty” podcast.

—————————————————————————————–


Blog post

5 Cs of Summer: Cold Coffee, Clean Cars & Convenience

Subscription programs are a great way to secure long-term customer loyalty and revenue. Whether you are providing a subscription for beverages or car washes, securing recurring monthly revenue is imperative to stay competitive.   Summer is around the corner and retail marketers are crafting sunny campaigns to increase customer traffic to the store. Help those […]

Blog post

Circle K Makes a Splash With Car Wash Subscription Program in Europe

Circle K has extended its highly successful car wash subscription program to Norway after successful implementations in the United States, Canada, Denmark, Sweden and Estonia. Circle K’s vast global network of car washes has digitally transformed operations with its revolutionary car wash subscription program. First launched in Denmark and the U.S. in 2020, the program […]

Blog post

Newly Redesigned Brezelkönig App Accepts Payments and Rewards Loyalty

Swiss foodservice chain Brezelkönig releases app update which offers customers the convenience of earning rewards and paying for products with the app in stores.  The recently-updated Brezelkönig app allows pretzel-loving customers to enjoy recognition and rewards for their loyalty. Additionally, the Brezelkönig app accepts payments to make the customer experience even more convenient.  Brezelkönig is […]

Blog post

Sunshine Gasoline Introduces ACH-Only Mobile Payment for Fuel

Florida convenience retailer releases fuel payment app accepting only ACH payment, saving thousands in payment processing fees for the retailer. Sunshine Gasoline upgraded its Max Carwash App to Sunshine Brand featuring a special fuel pay program, powered by C-StorePay by Liquid Barcodes, which allows consumers to conveniently pay for fuel using the app. Customers simply […]

Blog post

2022: An Outstanding Year for Liquid Barcodes and Our Customers

In 2022, Liquid Barcodes witnessed a year of unprecedented growth with customers, products and team members. Every great business has an inspiring founding story and Liquid Barcodes’ 10-year journey is inspiring the future of loyalty. Beginning as a startup in Norway, the company opened its second office in the United States in early 2022 and […]

Blog post

What Is C-StorePay?

Liquid Barcodes’ proprietary C-StorePay makes paying for fuel, in-store merchandise, and subscription programs convenient for customers, reduces credit card fees for retailers, and integrates easily into existing loyalty programs Announced in October 2022, the revolutionary Liquid Barcodes C-StorePay product rose to the top of retailers’ 2022 wish lists at the NACS Show, even achieving a […]

Blog post

Polish Retail Leader Żabka Launches Coffee Subscription Program

Polish retail giant, Żabka introduces a monthly coffee subscription program across its vast store network. With its new coffee subscription program, Żabka Polska will certainly dominate the beverage category in Poland’s unique convenience market. In July 2022, Dr. Adam Manikowski, Managing Director of Żabka Polska, was featured on the popular Global Convenience Store Focus video […]

Blog post

Loyalty Apps Engage Customers

98% of loyalty app users love using a loyalty app and want more features from it. In September 2022, NACS published a report examining customer engagement with convenience loyalty programs. Unsurprisingly, customers feel most engaged, appreciated and valued by the stores to which they belong in a loyalty or membership program – nearly ¾ of […]

Blog post

Save Thousands in Credit Card Fees With ACH

Visa and Mastercard announced an increase in interchange fees earlier in the year and retailers are taking action and sending a message by migrating their customers to new solutions, including mobile app-based ACH payments, and in the process increasing profits by not only reducing credit card fees but also boosting loyalty via innovative app-based incentive […]

Blog post

Maxol Launches First-of-Its-Kind Loyalty App

Maxol, Ireland’s largest family-owned forecourt and convenience retailer, announced it has launched a new customer loyalty app with never-before-seen features in the Irish market. After more than a century serving Irish customers, Maxol’s 240+ stores and service stations are located throughout Ireland and have enjoyed global recognition for their best-in-class operations, store design and offers. […]

Blog post

Delivering Personalized Content With Machine Learning and Image Recognition

Build personalized customer connections, improve efficiency, and make intelligent, data-driven decisions using machine learning and image recognition.   It’s 7:15 in the morning and a customer – Amy – is on her way to work. She is on the hunt for coffee and breakfast and stops at a convenience store. She opens her store app […]

Blog post

Circle K’s Use of Beacon Technology to Activate Car Wash Subscription Program

Beacon Technology and Car Wash Subscription Programs Beacon technology used in tandem with a customer-facing car wash subscription program revolutionizes the customer experience by providing a quick, convenient experience. Innovation is the key to continued growth and ensuring a frictionless customer experience should be top of mind for any retailer. Circle K’s vast global network […]

Liquid Barcodes

Put a rocket under your loyalty program

With our loyalty platform, we help design and operate world-class, tailor-made subscription and reward programs that make sure your customers always come back.

Book a Demo →

We are trusted by global brands.

Convenience retailers all over the world have engaged and rewarded consumers with our tailor-made loyalty programs.

To our case studies →

Liquid Barcodes
Liquid Barcodes
Liquid Barcodes
Liquid Barcodes

Convenience retailers all over the world have engaged and rewarded consumers with our tailor-made loyalty programs.

To our case studies →

Liquid Barcodes
Liquid Barcodes
Liquid Barcodes
Liquid Barcodes