Added Services and Technology in Laundromats Upgrade the Customer Experience

Added services are the core of laundromat differentiation, expanding the audience by meeting niche needs. Competitiveness can be improved in the following ways.

Diversification of Added Services

● Dry Cleaning and High-end Services

The biggest laundromat chain brand in South Korea attracts high-spending customers by introducing dry cleaning collection services, nail art, pet care, and other diversified selling points. In 2021, its franchise stores increased to 700, with a total of 5,000 stores. Its annual growth is more than 30%.

● Ironing and Folding Services

For working people and home users, the “wash and iron immediately” service is provided. For example, laundromats in chain hotels are equipped with high-end ironing equipment, which has become a popular choice for young people to do laundry in autumn and winter. A single service can clean 8 down jackets and 10 sweaters. The cost is only 1/3 of the dry cleaners.

● Pickup and Delivery Service

Part of the outlets in South Korea adopted the mode of “Order online, hang the clothes outside the door, get back the clothes at the door the next day” by mobile App, covering time-pressed office workers.

Technical Upgrade

The technical upgrade can give users a more convenient experience, for example:

● Contactless Payment System

2024 industry report shows that stores that support scanning-code payment have 35% higher customer traffic than traditional coin-operated stores, and young users account for 70%.

● Intelligent Inventory Management System

By monitoring the chemical detergents and consumable inventory in real-time, the risk of out-of-stock can be reduced by 30%.

For example, a brand uses system data to optimize the purchasing circle so that the inventory turnover increases by 25%.

● Customer Engagement Mobile App

A South Korean brand uses an app to update the laundry completion progress and point rewards. The re-purchasing rate was raised by 50%. 

Space Design and Customer Experience Optimization

The details of designs directly influence the customers' retention and word of mouth.

● The Cleanliness and Functional Layout

According to the survey, 80% of customers set the cleanliness of the laundry equipment as the primary factor.

A chain brand installed a separate disinfection area in its stores and adopted a transparent cleaning process, which increased customer satisfaction by 40%.

● Lighting and Zoning Design

Natural light + lighting:

The South Korean store creates an efficient and comfortable environment through large Windows and directional lighting in folding areas, extending the average customer’s stay by 15 minutes.

Set up children’s play areas:

After a community store added a children’s corner, the proportion of family users increased from 20% to 45%.

Digital Marketing and Brand Building

● Establish a Social Media Account and Encourage Users’ Comments

South Korean brands encourage customers to share the “laundry+leisure” experience on social media platforms (the coffee bar in the laundromats) to increase online exposure by 300%.

For stores that use short video platforms to promote themselves, the cost of new customer acquisition is reduced by 50% and the conversion rate is increased by 25%.

● Membership System and Loyalty Program

A brand launched the “laundry points exchange dry cleaning coupon” activity so that the member repurchase rate increased by 60% and the unit price increased by 18%.

Successful Cases and Industry Trends

South Korean Mode:

By “laundry+added services” (self-service KTV, pet care, and so on) to realize differentiation. In 2021, the scale of the industry increased by more than 30%.

University Market in China:

80% of universities in Guangzhou adopt self-service laundry service. The daily income of a piece of equipment is 50 yuan. The ROI circle is reduced to 1.5 years.

Conclusion

Laundromats can break through the traditional model and cover a wider customer base through additional service expansion, technology empowerment, and experience design. Referring to the successful experience of other countries or regions and copying it to your own laundry can give you a new life.