Time-poor and revenue-focused franchisees are often more comfortable running discounts that produce an identifiable ROI than investing in long-term brand activity. However, changing this mindset is a critical task for national marketing teams.
Anytime Fitness marketing director Caitlin Bancroft understands the challenge only too well.
“Fitness is very promotionally driven, so we have our franchisees who are addicted to promotions and sales. It’s really been an education for them around the importance of building brand,” Bancroft says.
The gym chain focuses its media spend on a 70/30 brand/promotions split.
“We try to do an always-on level of brand, so that we’re always there in people’s minds for the 95 per cent of the time when they’re not looking to join a gym,” she says.
There’s a similar commitment to brand marketing at aged and disability in-home business Home Caring. Mitchell McBeath, head of customer and growth at Home Caring, says “If customers don’t have that trust and loyalty in the brand your just not going to get that long-term sustainability in any business.”
Brand helps to build longevity
Jamie Doran leads marketing at legacy home services brand VIP, which is celebrating 45 years in business.
“Brand is the essence of who you are when you’re not there to talk about it yourself,” Doran points out. “And I think CEOs and franchisees, at opposite ends of a business, are starting to appreciate that brand is helping build longevity,” she adds.
VIP has taken action to embrace and solidify its brand messaging over the last two years. It’s been a timely transformation.
“Hitting that 45 years and heading towards 50, we’ve got a great opportunity to look back at the heritage, to lean into that a bit more,” Doran says.
The value of long-term brand building is increasingly important as market saturation grows and consumer attention is harder to earn.
Bancroft believes it’s a crucial shift.
“Investing in brand is probably the most important thing for long-term, sustainable growth,” she says.
Reframing marketing as an investment for franchisees, rather than an expense, is a key strategy. “The most successful clubs are the ones that invest the most in marketing,” Bancroft says.
Download the Australian Franchise Outlook for more insights into the evolving nature of marketing.
