Marketing is an integral part of any business and is usually the fundamental way of driving profits through engaging new customers and retaining existing customers. It is the way businesses communicate with their market and meet the needs of prospective consumers.
From a franchise development perspective, franchisors must market to their prospective franchisee customers using the same principles. Successful marketing leads to successful businesses.
Marketing tactics for franchise businesses
Franchisees are required to undertake marketing on a local level to drive customers into their place of business. Franchisors should instil the importance of localised marketing and advertising strategies undertaken by their franchisees to increase the success of each individual business unit, while also supporting the overall business goals and the larger brand marketing activities that franchisors undertake on behalf of franchisees.
Franchise unit marketing is very specific, and once a marketing strategy is found to be successful for one franchisee, it can be replicated (to an extent) across other franchise units. Information, insights, and learning can be shared to benefit all – as they say a rising tide lifts all boats.
Personalised experience
Many franchise businesses aim to increase customer engagement through a personalised experience. Personalised marketing and engagement may include tactics such as sending a welcoming subscription email, responding to positive online reviews, or creating localised search engine optimization (SEO) strategies. The more time and effort franchisors devote to building strategies to strengthen relationships between franchisees and local customers, the more likely they are to be profitable and successful if the franchisee has enough guidance to implement them successfully.
Other considerations for franchise marketing include:
Brand consistency
The strength of the franchise business model relies on the fact that there is consistency between franchise units. This means not only consistency of service but also how they communicate that service to the target market through external marketing. Maintaining brand consistency through the same colours, logos, and materials is incredibly important so consumers can make the choice to engage with the business, and not feel disappointed that they didn’t get the amazing product or service they were expecting.
While still maintaining brand consistency, franchisors can work with local businesses to set different marketing tactics to suit the unit’s geographic location or country, however, it must sit within the overall brand guidelines.
Target your local market
One of the best strategies for growing a franchise outlet is targeting the local customers/consumers in that area. In most cases, the franchise will be positioned in a location where there are no other outlets of the same franchise (unless it is a very high footfall location such as a CBD or transport hub).
Customers’ interests and needs will vary depending on their location, and many regions have specific tastes in food, clothing, or services. Often units can benefit from small tweaks to their offering to meet varying customer preferences. Analysis of customer behaviour can help with this.
Insights from franchisee data
Data management and collection enables franchisors to better understand franchisees. By researching and analysing franchisee information, such as locations, revenue, and the number of franchise units owned by the same entity, franchisors can increase conversion rates in specific areas and encourage more franchisees to open units. Analysing data can also uncover unique insights that can set the franchise apart from its competitors.
Track the customer journey
Another excellent franchise marketing strategy is tracking the customer journey from first hearing about a brand to making a purchase and then recommending the brand to others. This is called the customer journey. By offering customers the best possible journey leads to them making a purchase decision and recommending the brand to others. In the digital world, many customers want a personalised user experience throughout their purchasing journey. By staying connected to customers via the various digital channels available such as devices, social media, emails, and text messages, brands can build a solid relationship with their customers, ensuring the customers choose the brands for their business.
Local marketing
For many franchise brands, local marketing is one of the best ways to increase revenue and grow their business. Franchisors should create strategies that each franchisee can adjust for their specific location. This could include the effective use of locally targeted social media or online advertising, video ads, geofencing, local sponsorship opportunities, community engagement, and even window displays and flyering.
Be different
When it comes to marketing a franchise, it is critical that you stand out from the competition. Many franchise brands compete with similar businesses that offer food, products, and services. To stand out from the competition, teach your franchisees to use marketing techniques to communicate the brand strengths and differences. Consider how Hungry Jacks differentiates itself from McDonald’s – ‘The Burgers are Better at Hungry Jacks’.
Encourage customer reviews and respond to them
Both franchisors and franchisees must encourage and monitor online reviews, and respond to them. Online reviews are a fact of life – consumers read them, and they promote transparency and improvements. Check out Facebook, Yelp, or Google for positive and negative reviews and reply accordingly. By showing that your company can engage with customer reviews, your franchisees are more likely to succeed.
Track marketing spend and impact
To track marketing efforts, keep a log of how much your company spends on the various aspects of marketing and have a feedback loop to know which areas are working and which aren’t. An easy one to implement is to ask customers ‘how did you hear about us?’
Choose the right marketing tools and CRM
Imagine this: you have a reliable customer relationship management (CRM) system at your fingertips. With this powerful tool, franchises can efficiently manage their connections and strengthen client relationships. Not only that, but it also helps you scout for potential customers. By fostering better relationships with franchisees and their local communities, you’ll see your business grow and your sales and marketing efforts thrive. Picture this CRM system as the hub that organises customer information from across the country, enabling you to effectively manage and view data throughout their purchasing journey.
For more information on how FranConnect can assist your franchise in its marketing efforts, book a demo today: https://www.franconnect.com/request-a-demo/
Author: Paul Sharpe, general manager, ANZ at FranConnect
