After 3 months of operations, the SpinCycle Laundry Lounge is trending well north of expectations. Our goal was to hit $22,000 in revenue by June 2017 and we should hit that by March 2017.

It has been rewarding to see customers really appreciative of our laundromat. They appreciate the things we all know are important to consumers, but sometimes overlooked in laundromats โ€“ cleanliness, competent attendants, comfortable seating, ample folding, free wi-fi, and an uplifting ambiance. We are very confident that if we can simply get a new customer in the door that they will keep coming back time and time again.

When a laundromat owner stops investing in their store, the only thing they can promote is price. And when that pricing promotion is done, those new customers you saw will go back to the previous laundromat they were using.

Revenue for SpinCycle Laundry Lounge through Feb 28, 2017

As you can see from the chart above, customers are really using the loyalty card program. This is in large part because our promotions have centered around giving customers value on their loyalty cards. This allows us to get away from promoting pricing at the machine level, which can sometimes be a slippery slope, and allows our laundromat to be sticky because customers leave the store with value on their card.

Promo 1

Dates: December 15 โ€“ February 1
Type of Promotion: $5 free loyalty card for any customer that brought in our advertisement
Means of Promoting: 12,000 piece mailer and Facebook advertising

Type of Advertisement # of Customers that Redeemed Offer
Mailer (12,000) 140
Facebook (6,612) 28

Of the 168 people that received a free $5 loyalty card, 88 added more than $5 to their card. We thought it was nice to mix in both snail mail advertisements and Facebook. The big takeaway for us has been the success of the Facebook advertising. This is something that I would highly recommend to all laundry owners. Facebook allows you to really target your market and it is inexpensive.

With the Facebook campaign, we had our ad in front of 6,612 users over two weeks, for about $78. 166 claimed the offer online, and 28 came in to the store redeem it. The demographic filtering and targeting is excellent and allows us to show our ad only to people who'll respond.

Promo 2

Dates: February 1 โ€“ March 31
Type of Promo: For every $20 put on a loyalty card, get $5 free
Means of Promoting: 18,000 piece mailer and Facebook advertising

As you can see in the revenue chart above, our loyalty card revenue jumped significantly during this promo, accounting for 29% of total revenue in February.

Key Takeaways from the first 3 months of operations:

  1. You really can only create long-term customer loyalty with a laundromat where the laundromat owner invests in his or her store
  2. Facebook is an extremely powerful marketing tool that all laundry owners should explore
  3. When thinking about a card system, incorporating a loyalty program is something that should be considered