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Many carwash operators focus their marketing efforts on the familiar 3- to 5-mile radius. Some may call it the “red ocean.” In the professional carwash industry today, swimming here can limit growth.
“There’s this big ‘red ocean’ of people competing for the same traffic,” says DRN’s Vice President of Business Development Noel Peña. “You’re throwing a free carwash, your [competitor] is throwing a free carwash, and people just become numb to the outreach.”
DRN’s technology uses license plate recognition (LPR) and distance data to break that cycle. Instead of saturating the same small area with generic offers, operators can now target customers based on real driving behavior and not just proximity. They can track real-world behavior and target customers more precisely — even if they live farther away in the metaphorical “blue ocean.”
Why staying in the “red ocean” hurts
The idea that core customers only live nearby in the “red ocean” no longer holds up. Peña encourages operators to focus less on proximity and more on relevance.
“It’s not the distance [factor]. It’s the conversation, or the connection, to the right audience,” he says. “We know they resonate with our carwash. We know they have a good lifetime value. These are our tribe, these are our people. That’s the No. 1 focus.”
Instead of casting a wide net to every household eight miles out, Peña recommends getting more specific.
“You’ve got to analyze data; look at that buyer persona and figure out who they are,” he explains. “[For example], you have a minivan, you have a family situation, you have an affluent neighborhood, etc. We know demographically, as a business, I have a specific offer that I want to make, whether it’s an upscale offer or maybe it’s a family plan offer. I need to identify and match those two together.”
Using license plate marketing to find the “blue ocean”
DRN’s technology records actual vehicle traffic patterns using LPR cameras. This gives operators clear insights into where prospective customers live and how often they pass the wash.
“Distance data analyzes the area beyond 5 miles — 7, 10 and even 20 miles out,” Peña says. “When [someone passes] by your wash three to five times a week from 8 1/2 miles away, that’s a viable customer.”
This insight opens a “blue ocean” of untapped potential. While other operators compete over a smaller 5-mile radius, you can reach high-value customers they ignore beyond that threshold.
“You’re looking beyond and you’re trying to tie in data that’s been scanned by your location,” Peña says. “Most washes miss that.”
After identifying these new prospects, the next step is to deliver the right message. “Sales 101 is matching needs to the customer,” Peña emphasizes. “You have to solve a problem for them.”
Whether it’s a family plan for parents with multiple vehicles or a premium service for an affluent demographic, the offer must match the customer. Peña emphasizes that the right audience won’t respond to the wrong pitch. He recommends building multiple tailored campaigns based on behavior and demographic segments, especially when expanding beyond your local radius.
Testing tactics and leveraging AI
While strategy provides direction, tactics drive results. Peña encourages carwashes to test different channels, including direct mail, social media and email, and evaluate which ones perform best.
“One of the tactics that could be used to kind of test the market and test this data out is utilizing some offers to these audiences by warming up the audiences slightly,” Peña notes.
To sharpen your messaging, Peña suggests using AI — not to write campaigns, but to enhance them.
“Build your campaign around your customer base, your tribe, and then have it delivered to AI intentionally,” he says. “Have [AI] really dissect your [campaign] and give you some insight of what’s better delivery for your customer.”
Now just may be the time to stop swimming in the oversaturated “red ocean.” By using data from license plate marketing, you may want to start dipping your toes in the open “blue ocean” for high-value customers.
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