Posted by Sonny's CarWash Controls on 8/19/2019

If you haven't yet heard about car wash LPR systems, you will soon. License plate recognition, or LPR, offers a great alternative to radio frequency ID (RFID) systems. If you think back a few years, RFID tags made it easier for car wash owners to encourage sign-ups of loyalty programs. RFID minimized employee interaction with customers on each visit provides operators with a low-maintenance method to self-service.

While RFID is popular, it is not without complications or ongoing costs. There's an upfront cost of the detection equipment and each RFID tag you attach to a customer's car has a cost ranging from $2-$4+. There are also ongoing labor expenses managing the tag inventory and placing the tags on each vehicle you want to track. To make matters worse, RFID readers may detect a tag in another lane stopping your line and giving away a free wash. We're finding RFID is also less accurate as it gets blocked by windshields with UV protection or other common coatings.

This is where LPR systems come into play. LPR makes use of something that every car already has: a license plate. With an LPR system you don't need attendants putting an RFID tag in a vehicle. Instead, the system automatically recognizes the license plate, and automation takes care of everything else. License plate information can be automatically detected at the pay station or POS, entered by the cashier or on your website by the customer.

How does LPR work?

An LPR system uses high definition cameras and optical character recognition technology to read the characters on a license plate and match the plate to your member database and point-of-sale (POS) system, which holds all of the owner's pertinent information.

A vehicle pulls up to the car wash and the system automatically reads the plate. Based on this information, the system instantly confirms if the vehicle is a member. If yes, they are welcomed and optionally offered wash upgrades before opening the gate to enter the wash. If not, the system can prompt the customer to join, add the credit card for recurring billing, save the license plate number and admit your new member to the wash without having to check with an attendant. Streamlining your membership sales and redemptions is just the beginning of how LPR can give you a competitive edge.

Impact of LPR on your car wash marketing

Low operational cost, reduced queue time, increased membership sales and accurate data collection are just a few benefits of LPR. You can use the system to track the frequency of visits and how much clients spend - even if they're not members of your plans. Based on this information, you can provide targeted marketing on the pay station to gain more club members and boost your average ticket. Imagine presenting a customer who chooses your base wash three times in a month an offer to upgrade to your top package for $1 or join your unlimited plan for a discounted trial - that's the power of what LPR delivers.

Benefits and accuracy of LPR

The future of LPR is incredibly bright. Many car wash operators report 98% accuracy or better, with the average at 95%. As such, LPR technology is already proving to be more accurate than RFID technology.
On top of that is the inherent benefit of LPR reducing the chance of customers switching their tag to share their membership with another vehicle, since most states have serious consequences for driving a car with a fictitious plate.

The bottom line

LPR systems provide many benefits to the operator and the consumer. For the consumer, there's convenience to club plan membership since there is no need to wait for an attendant to give them the RFID tag. Consumers can manage their own account online and even on their mobile device.
For the operator, there is greater marketing potential to track washes from loyal users currently not on your membership plans. There is opportunity to thank a loyalty member at the welcome screen and customize promotions based on visit data. Record keeping and real time tracking is automatic. And from a staffing standpoint, LPR eliminates attendants managing tags and handling credit card information. At the very least, a car wash LPR system lets your employees focus on their regular tasks and avoid constant interruptions when someone signs up for a club plan. LPR technology is an exciting option for car washes. LPR systems can provide marketing benefits, streamline club plans and provide convenience for both your customers and your staff.