(5) best practices for marketing franchise opportunities (ms & mj)

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About us

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Overview of Franchise Marketing

Paradigm for Franchise Marketing Tools for Franchise Marketing Working with Brokers Diagnosing Sales and Marketing Problems

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A Digitally-Integrated Approach

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Website Development Public Relations Social Media LinkedIn Branding Content Development Search Engine Optimization Pay-Per-Click Advertising Lead Generation

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27 consultants across four functional specialties 500+ years of experience in franchising 98 of top 200 franchisors 200+ articles and 30+ years of consulting experience

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More “senior level” experience ◦

Former CEOs, CFOs, EVPs of two dozen major franchise companies

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Experience with start-up and established franchise programs Strategic Planning Quality Control Marketing Implementation and Organizational Development

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More Data = Better Data (track 200,000+ leads)

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Franchise Dynamics ◦ ◦ ◦ ◦ ◦

Will provide copy of presentation upon request 

Lots of material to cover – so please hold your questions until the end

Nation’s premier franchise sales outsourcing firm Sold over 2,000 franchises since 2010 making it “Top 10” each year 25 sales and marketing professionals who have collectively sold over 7,000 franchises 400 additional years of franchise experience Former Senior Executives at Cendant, Chem-Dry, The Dwyer Group, LINE-X, Management Recruiters International, Ponderosa, TCBY, Ziebart, and other national brands

TopFire Media ◦ ◦ ◦

Nation’s first fully integrated media firm -- SEO, PPC, Social, Blogging, PR, and Mobile Both brand/consumer focused and franchise lead generation Recent honors and awards:   

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Adia (now Adecco), Armstrong Tile, Auntie Anne’s, Dunkin’ Donuts, LINE-X, Pearle Vision, McDonald’s, PIP Printing, Schlotzsky’s, Snap-on Tools, Snelling & Snelling, and other national brands

Breadth across four functional areas ◦ ◦ ◦ ◦

National recognized Public Relations Agency One of the nation’s premier digital media agencies One of the few with a franchise specific focus Both consumer and franchise lead generation practices

27 consultants with over 500 years of franchise experience Our consultants have worked with 98 out of the top 200 franchise companies worldwide Offices: Chicago, Los Angeles, Dallas, Toronto, Dubai, Jeddah

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Matthew Jonas, President, TopFire Media ◦ ◦ ◦ ◦

More hands-on experience than any other firm ◦ ◦ ◦

Mark Siebert, CEO, the iFranchise Group

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Best new agency (Ragan & PR Daily Ace Awards) Best Website Finalist (PR News) Best Media Relations Campaign Finalist (PR News)

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A Fully Integrated Approach to Franchise Marketing & Sales

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Primary Research Marketing Plans Brochures Videos Collateral

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Web Development Public Relations Social Media SEO Services Pay-Per-Click Lead Generation

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Media Placement Trade Shows Direct Contact Performance Monitoring • Reporting

Feedback Loop - 200,000 leads - 500/sales/year

Note: TopFire Media Provides Consumer Marketing for Franchisees Too

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Franchisor Marketing Dollars by Media

Average Franchisee Recruitment Budget

Percentage of Total Expenditures: 2010-2015

(in Thousands)

Almost 60% of Franchise Lead Spend is Focused on Digital Media

Source: Franchise Update

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Source of Franchise Leads by Media

Breakdown of Expenditures on the Internet

Percentage of Total Leads Received: 2009-2014

2010-2014

80%

Unfortunately, many franchisors are spending their money in the wrong places where it is least effective

And Over 70% Franchise Lead Generation Comes from Digital Media & PR

70% 60%

Note emergence of remarketing

50% 40% 30% 20% 10% 0%

Internet

Print 2009

Referrals 2010

2011

Other 2012

Trade Show 2013

P.R.

2014

Source: Franchise Update

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The Franchise Sales Pipeline

Average Closing Costs (Media Dollars Per Sale)

Public Relations CPL = $250

$14,000

Print Advertising CPL = $150

Trade Shows CPL = $100

Direct Mail CPL = $75

Internet Leads CPL = $25 - $75

Brokers Cost Per Sale = $15K - $24K

Referrals/ Unsolicited CPL = $0

$12,000 $10,000

Lead Generation Time Varies by Media

Median CPL: $62

$8,000 $6,000

Meet With 3 – 10% of Leads

$4,000 $2,000 $0

Send Marketing Materials, Prequalify, Schedule Meetings

Convert 15% - 20% of Completed CIRFs to Sales

Source: Franchise Update

2008

2009

2010

2011

2012

2013 Close 65% - 75% of Discovery Days

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Initial Meetings with Candidates Further Qualify

Follow-up meetings, assist with business plan & secure financing

Award Franchise

Average 45 – 90 Days Lead to Meeting Time to close can range from 30-90 days or more following the initial faceto-face meeting Total time to close: often 12-20 weeks Average Marketing Cost = $9,142 per sale Overall Expected Close Rate = 2%* *Disclaimer: Most recent close rates Annual Franchise Development Report from Franchise Update, Dec. 2014, differ from those shown here. We are using the more conservative number, from 2013, until this is determined to be a longer term trend.

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Start locally, then regionally ◦ ◦ ◦ ◦ ◦

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Cluster support More effective franchise advertising Consumer advertising economies Brand building Buying economies

Don’t expand faster than your support capability

◦ Quality control is key ◦ Nothing sells franchises as well as happy and successful franchisees ◦ Three hour drive time

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Different franchises require us to target different types of franchisees – affecting the media and message used for effective marketing. 

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Identify your prospect as narrowly as possible

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◦ Survey Competitors   

Background Hot Buttons Media

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Franchise marketing is very different from consumer marketing Franchise marketing is highly regulated Tools: ◦ Your web page should be your first concern

◦ Survey Franchises 

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◦ Develop a mini-brochure for the sake of economy

Are we selecting the right lead generation strategies?

◦ A full-sized brochure is essential for credibility ◦ Video – the New Brochure

Is the advertising message appropriate for our targeted franchisee profile?

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Are we targeting the right prospects and using the right media based on our development strategy?

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Be sure to have your attorney and registration states review all materials

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May Represent 100 – 200 Franchisors Contacts Suspects Prospects Opportunities Revenue

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Increasingly more important in the franchise development process

Local Leads Attract Sell on “no-cost consultative” approach Pre-qualify Refer to 3 – 6 Franchisors Get paid regardless of which is bought

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Franchisor 1 Franchisor 2 Franchisor 3 Franchisor 4 Franchisor 5 Franchisor 6 Franchisor 7 Franchisor 8 Franchisor 9 Franchisor 10 Franchisor 11 Franchisor 12 Franchisor 13 Franchisor 14 … … … 18

Mostly a pay-for-performance ◦ Some charge a monthly retainer $2-$5K

◦ Level of professionalism and scrutiny has increased and driven out weaker, less legitimate players

◦ Commissions average ~$13K per ◦ Commissions on additional sales ◦ Multi-unit, ADA, Area Rep more

◦ In 2000, 11% of new units came through Brokers, now it is 30%+

◦ Some system entrance fees - $20K

◦ 60% of all Franchisors use Brokers as part of their overall franchise development strategy

◦ Some advertising requirements

◦ 93% have made at least one placement with a Broker network 

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Brokers do not replace the need for an internal sales force

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Negotiable for bigger brands

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Payout when funds clear

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Non-exclusive

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Tend not to accept new franchisors

Source: Franchise Update, iFranchise Group 2013.

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Diagnosing Sales Problems

Publicity

Brokers

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Print

Franchise Concept Itself

Potential Problems • • • • • •

High unit investment Financial performance Look and feel Franchise structure Value proposition Franchisee validation

Symptoms

Diagnosis

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Bad/No P.R. Low unsolicited inquiries Losing sales to competitors Repeat objections not overcome Prospects go dark after validation

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Evaluate design/construction model Comparative financial analysis Evaluate unit economics/ops Contract comparison Marketing comparison Phone interviews of franchisees Franchisee satisfaction surveys (web) Evaluate real estate portfolio Survey “lost” sales

Franchise Lead Generation

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Media Selection Media Mix Message Ad Spend Target Audience Timing

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High lead costs Low close rates Message confusion Few qualified prospects Low quality lead sources predominate

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Historical vs. norms Media specific analysis Performance vs. competitors Message vs. competitors Franchisee or competitor surveys

Franchise Marketing Materials

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Target Audience Materials Used Message Inadequate differentiation Design Quality Production Quality

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Bad/No P.R. Low unsolicited inquiries Losing sales to competitors Repeat objections not overcome Lose sales to market leader Low application rate

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Review for best practices Message based on surveys Application rate vs. norms

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Lead handling Follow up Effective Process Sales Skills Salesperson Motivation Sales Tools Staffing v. Goals

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Low application rate Low discovery day rate Low close rate Long “time to close” Variances in salesperson close rates Un- or under-worked leads Few broker leads

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Historical vs. norms (close, speed, etc.) Salesperson vs. salesperson Historical vs. past performance Develop sales process map Mystery shop sales force Leads per salesman Sales per salesman Broker validation calls

Sales Process & Technique

Direct Mail

Internet

HighLead lead costs Could Indicate could indicate Concept Problems media selection problems Low conversions could Face-to-Face/Discovery Day In indicate short, close analysis of indicate Poorvarious marketing materialsCould media-specific, marketing, Sales problems and sales statistics, -Urgency Low can beconversions indicative of where Few leads -Setting Agenda could indicate problems may Closeexist, allowing could indicate -Closing Skills for appropriate corrective action. poorof sales skills or lack broker poor validation confidence

Referral

12 weeks

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Marketing and Sales Audit Process Sales Factor

Trade Shows

Problem Resolution – Phase Two Sales Factor

Franchise Concept Itself

Confirmed Problem • • • • • • •

Unit investment Financial performance Look and feel Franchise structure Value proposition Franchisee validation Real estate model

Potential Solutions • • • • • • • •

Value engineer design and construction process Suspend sales and work on business model, support, franchisee training Retain design firm, consumer marketing firm, or PR firm as appropriate Revise franchise business structure Provide incremental value or reposition concept Communications plan, FAC, address survey-specific concerns Improve real estate process Develop third-party financing programs

Franchise Lead Generation

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Media Selection Media Mix Message Ad Spend Target Audience Timing

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Develop formal marketing plan based on survey results Alter marketing mix to focus on higher-quality lead sources Alter message based on survey results Increase advertising expenditure based on goals Optimize website and PPC campaigns Develop and measure benchmarks; rotate bottom 10% quarterly

Franchise Marketing Materials

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Target Audience Materials Used Message Inadequate differentiation Design Quality Production Quality

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Rewrite, redesign, and reprint materials as appropriate Develop or revise standard sales correspondence Rewrite and redesign web pages as appropriate Add technology improvements (auto-responders, sales software, etc.) Develop additional promotional tools (video, etc.)

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Lead handling Follow up Effective Process Sales Skills Salesperson motivation Sales Tools Staffing v. Goals

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Develop and map effective sales process Train sales staff and provide guidelines to non-sales staff Replace poor sales personnel Benchmark and measure performance Alter compensation Evaluate external resource opportunities (FSO, LQS, software solutions) Add sales professionals, support staff, or both Proactive broker programs

Sales Process & Technique

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Everyone believes they have the solution to lead generation ◦ ◦ ◦ ◦ ◦

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Messaging not coordinated across media professionals When your only tool is a hammer, then every problem is a nail

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Most emerging franchise concepts do not have an unlimited marketing budget Circumstances will be very different ◦ ◦ ◦ ◦ ◦ ◦ ◦

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PR practitioners – credibility Ad agencies – predictability Social media firms – engagement Search engine optimizers – visibility Video houses – compelling storytelling

Goals Budgetary restrictions Geographic focus Profile of your franchisee Quality of existing websites and materials In-house resources and their capabilities Competitors

Need to allocate resources based on an integrated lead generation strategy A canned approach will not work Source: FranchiseUpdate.com

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Using a Webcentric Approach

Focus Should Integrate All Media Around The Website

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A focus on visual appeal alone can be a disaster

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Too many websites ◦ ◦ ◦ ◦

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Develop a plan ◦ ◦ ◦ ◦ ◦ ◦

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Public Relations as a next step

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Builds credibility Generates franchise sales leads Creates brand awareness Position as thought leader Amplifies marketing initiatives Validates your concept

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By creating inbound links, PR also helps increase your SEO efforts

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Plan must do more than increase unique visitors Responsive design with mobile in mind Create effective calls-to-action Increase the length visitors stay on your site You need a website design that converts traffic Improve franchise lead capture rates

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Provide non-optimized content Not designed for mobile traffic Not developed for organic traffic Flash over substance

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Consumer audits – accountable for predetermined increase over base levels Participation in digital activities, social media, and web traffic Consistent increase of Facebook likes, Tweets, reposts, shares and links Event attendance (as scheduled) Analysis of PR spend vs. ROI ◦ Measure year over year increase in coverage and impressions

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Inbound leads (typical close rate of 8% -12%)

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Impression goals

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Quantify positive, neutral content vs. negative content

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“The best place to hide a dead body is on the second page of a Google Search.”

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Assessment

◦ 77% of users never scroll past the first page of search results ◦ There are over 171 million Google results for the word “franchise”

Social Media

• Coding •

Google is more than 68% of all online search

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◦ Google’s algorithm — a closely held secret ◦ The algorithm changes up to 500 times a year ◦ Google’s goal: Deliver fresh and relevant content to the searcher

Ranking factors fall into four basic categories

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Social Media is important in its own right – not just for SEO

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Why it is so important ◦ ◦ ◦

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82% of the 30-49 year old bracket are now active on social media 65% of the 50-64 year old bracket are now active on social media

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Conversations ◦ ◦ ◦

Your competitors are optimizing while you are not – driving them to the top

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Define your audience Strategy development Visual branding Community development Create engaging content Develop a plan Develop guidelines Execute

Listen and respond ◦ ◦ ◦ ◦ ◦

Average person sees 3,000 ads a day Only 14% of people trust advertisements But 92% trust the recommendations of others

It searches for “relevant” content

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Focus on a specific audience ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦

47% of people that follow a brand on Twitter are likely to visit that company’s website Pinterest has more than 100 million users (85% female) Instagram has 400 million monthly active users Your customers expect you to be on social media

It searches for “fresh” content

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Content

Defines the image of your franchise brand  First stop for many prospective franchise investors 76% of all internet users are now active on social media Validates your business model  

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Develop Links

On-Page coding On-Page content Inbound Link Authority Social Media Signals

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Google’s Algorithm changes constantly

Hootsuite Social Mention Google Alerts Business Wire Wildfire

*http://www.jeffbullas.com/2014/01/17/20-social-media-facts-and-statistics-you-should-know-in-2014/

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Largest network of professionals online 433 million users 3 million business company pages 51% update their profile regularly 1.8 million LinkedIn groups

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More decision makers are on LinkedIn LinkedIn use is highest among the 3049 (32%) and 50-64 (26%) age groups, and is also far above-average among those with a college degree (46%)

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LinkedIn uses trends upwards alongside household income (HHI), reaching 38% among those with HHI of at least $123k, more than triple the rate for those with less that $30k in HHI (12%)

Email marketing can be easily integrated into your marketing strategy and cause it to be more effective Email marketing enhances the relationship of your business with its current or previous customers ◦

Encourages customer loyalty and repeat business

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ROI can easily be tracked with less delay

Email marketing is not dead! With the growth of mobile and the future of mobile e-commerce, email marketing is just getting started… ◦

91% of consumers check their email at least once a day

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Email is the most popular activity on smartphones among users ages 18-44

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66% of US online consumers, ages 15 and up made a purchase as a result of email marketing messages. Source: expresspigeon.com, email marketing statistics 2015

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Why it is so important ◦ ◦ ◦

Industry Publications

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Highly targeted marketing Google fields 1.2 trillion queries per year Top 3 sponsored links account for 41.1% of the clicks Poorly managed accounts drive up costs quickly

Test-Refine-Test ◦ ◦ ◦ ◦ ◦ ◦ ◦

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Keyword research (including negative keywords) Campaign development, budgeting, and bids Ad design and testing Build custom landing pages Ongoing PPC monitoring and management Google display retargeting advertising Google display advertising

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It never hurts to get a second set of expert eyes on your online marketing presence

We create Integrated Lead Generation Marketing plans tailored around your budget and goals! TopFire Media was created to meet market needs head-on with our fully-integrated approach ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦

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Lead Generation Website Development Search Engine Optimization Public Relations Social Media Management LinkedIn Optimization Email Marketing Content Marketing (Blogs) Pay-Per-Click Advertising

Website SEO Rankings Social Media Channels LinkedIn Profile PPC Advertising Campaign Online Reputation

Prioritize Your Efforts Based on Results and Budget

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www.ifranchisegroup.com 708-957-2300

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www.topfiremedia.com 708-249-1090

708-249-1090

facebook/topfiremedia ▪ twitter/topfiremedia

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If you would like a copy of this presentation or a complimentary assessment, please provide us with your business card.

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