Final answer:
Queaky Clean Car Wash's punch card system is designed to build customer loyalty by rewarding customers with discounts, and encouraging them to return for future services.
Step-by-step explanation:
The punch card system that Queaky Clean Car Wash is employing is a strategy to reward customers who frequently make purchases by offering them a future discount. This type of incentive program is aimed at encouraging repeat business, which is central to building customer loyalty. By giving a 20% discount after a set amount of spending, customers are motivated to return to Squeaky Clean for their car wash needs, strengthening the relationship between the business and its clientele. It's a tool that fosters customer retention, and in the long run, it can contribute to an increase in revenue and customer base as loyal customers are more likely to recommend the business to others.