What Drives Customer Loyalty? ICA's 2025 Q1 Pulse Report Breakdown

"It’s the whole totality of the experience and how we treat our customers to show that they’re valued.”

Eric Wulf, CEO of the International Carwash Association (ICA), and ICA Research Director Bob Klein discuss the findings of ICA’s 2025 Q1 Pulse Report, covering the health of the industry, customer satisfaction, and the balance between price and wash value for car wash customers.

Top 5 Episode Highlights:

• The Health of the Consumer Drives the Health of the Industry – Eric and Bob discuss how customer sentiment and behavior shape industry growth, with pricing dissatisfaction often offset by strong perceptions of value—especially among subscription customers.
• The Price vs. Value Perception – Car wash owners must recognize the emotional side of pricing and focus on the totality of the customer experience to show value. The conversation draws insights from Quick Service Restaurants (QSRs) like Chick-fil-A, where customer engagement plays a key role in perceived value.
• Subscribers Who Become Transactors: A Retention Opportunity – 54% of former members continue washing their vehicles at the car wash where they previously had a membership, providing an opportunity for operators to re-engage and build long-term loyalty.
• Loyalty Programs: A Disconnection Between Customers and Operators – The Pulse Report has asked about loyalty for nine years, and customers consistently cite loyalty programs as a key retention driver. However, operators do not prioritize them, signaling a missed opportunity to strengthen customer relationships.
• Industry Growth & Supplier Outlook – Projections for year-end growth increased slightly from 5% to 6%, with 6 in 10 retailers increasing prices in 2024. Meanwhile, supplier optimism has softened, with forecasted growth of 5%, and their top concerns remain hiring, rising costs, and employee retention. To counteract these challenges, suppliers are investing in training and helping car wash owners enhance customer value.

Eric and Bob begin the conversation by examining the overall health of the car wash industry, which is closely tied to consumer sentiment. They emphasize that while customers may resist price increases, strong value perception—especially among subscribers—helps mitigate dissatisfaction.

The discussion then shifts to how car wash owners should interpret the Pulse Report’s price/value findings. Eric and Bob stress that customer experience is in the operator’s control. They highlight how Quick Service Restaurants (QSRs), like Chick-fil-A, focus on hospitality and engagement to reinforce customer loyalty—a model the car wash industry can learn from.

Bob also references an article he authored in the 2025 Q1 issue of Car Wash Magazine, which explores the five key principles used by the QSR industry to enhance the value proposition and customer experience.

The episode also covers the behavior of subscribers who become transactors, noting that 54% of former members continue to use the car wash where they had a subscription. This presents a valuable opportunity for operators to create a dialogue with past members and encourage repeat business.

For the past nine years, the Pulse Report has surveyed both customers and operators about loyalty strategies. The data shows that customers strongly value loyalty programs, yet operators do not prioritize them, highlighting a gap in retention efforts.

On the growth and supplier side, there is a slight uptick in year-end growth projections from 5% to 6%, and 6 in 10 retailers increased prices in 2024. Looking ahead, the Q2 issue of Car Wash Magazine will explore 12 key factors businesses should consider before implementing price increases.

Supplier sentiment, however, is less optimistic, with a softening outlook despite a projected 5% increase. The top three concerns for suppliers