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Unlimited Monthly Plans

JeffM

The Canadian
Just wondering if anyone has data or experience on the average usage for Monthly unlimited plans for Full-Service and EE. Moreso looking for customer usage for first 2-3 months during the "novelty" phase and then how it drops off after that.
 
Unlimited is a lot like human nature.

Offer fatty food, fast and cheap usually results in lots of fat customers who focus on price.

Unlimited is also a drug operators easily get hook on – ARM, RFID, etc.

Results can vary considerably from several hundred members to well over 1,000.

Typical use is 3 to 5 washes per month and some operators see a little more.

When unlimited use is high, it’s more difficult to up-sell higher margin services; it brings down average revenue per car considerably (about $2.00); and it increases operating expenses.

Major benefit is it allows operator option of pricing low without marketing a cheap price.
 
Any idea on how often those customers came before? I'm assuming that even with the increased frequency, you have still seen an increase in revenues and profit?

I wish I could give you a good answer on how many times those customers came in before but I can't. My gut tells me they went from spending $20 per month to spending $35 per month. I had my most profitable year since 2008 in 2012.
 
Almost all operators I have talked to about doing this say they have increased revenue. Most say that the first month or so customers probably use it at least once or twice a week and then level off to probably two or three times a month. Most said they are happy with the results especially those charging the customer's credit card monthly. Seems to really help when it rains or snows a lot.
 
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