So much has changed in franchise sales. What are you doing differently?
What has changed over the past 5 years in the way franchisees find, research and decide to invest in a franchise opportunity?
Joe Caruso
Hello Rachael certainly technology & communication channels have changed.
But the way people buy franchises has not.
The franchise buying process doesn't happen without franchise buyers and franchise sellers talking.
Franchise buyers have always wanted and needed help from a franchise salespeople.
What they don't like is what people have always disliked hackneyed & cliched selling that's unhelpful and misses the mark.
Michael (Mike) WebsterRachael Wachstein, many people claim that probable purchasers of franchises have changed their decision making.
But, we don't see any more public discussions of the franchise opportunity as described by the FDD today than we did 5 years ago.
It would be as if everyone who discussed how to buy a stock did so without ever referring to a 10k!
Probable purchasers of franchises still focus on the wrong details & so may become "unhappy franchisees" after their purchase.
Rachael WachsteinI do not deny that sales people are critical. People don't do business with an article or eBook or industry report. But it is undeniable that to get to the stage where people are doing deals with franchise sales people, the prospect has the expectation that they can find information and research the opportunity. If they can't find information some may pick up the phone to talk but most likely they'll move on. Franchise sales people are critical in the creation of a compelling online presence for a franchise opportunity. They have the experience to know what's important to candidates, what questions they commonly have. I'm not suggesting they be removed from the process but rather that their role should evolve with today's reality.
Rachael WachsteinI do not deny that sales people are critical. People don't do business with an article or eBook or industry report. But it is undeniable that to get to the stage where people are doing deals with franchise sales people, the prospect has the expectation that they can find information and research the opportunity. If they can't find information some may pick up the phone to talk but most likely they'll move on. Franchise sales people are critical in the creation of a compelling online presence for a franchise opportunity. They have the experience to know what's important to candidates, what questions they commonly have. I'm not suggesting they be removed from the process but rather that their role should evolve with today's reality.
Rachael WachsteinJoe and Michael- I agree with you that franchise sales executives are still the ones who ultimately close the deal. They have just as significant role to play today as they did in years past. However, their role has evolved or should evolve based on the changes in the expectations of franchise buyers. Franchise buyers expect to be able to research and vet an opportunity online. They have a world of information, research and opinions at their finger tips.
These changes are good for franchise sales executives if they are willing to adapt to the reality. They have the insights to create a compelling digital foot print for a franchise opportunity. They know what questions are commonly asked, what truly motivates prospects to invest, how to communicate and convince prospects to seriously consider their opportunity over others. A marketer can't sell a franchise but a smart marketer can work in partnership with a franchise sales exec to connect with and convince prospects to engage.
Joe Caruso
Rachael I will gently & firmly disagree with you on this.
Probable franchise purchasers/buyers have not changed in how they go through their mental operations leading up to an eventual purchase of a franchise.
There simply is no evidence that has happened.
Or that there's been an evolution or revolution in franchise discovery that probable franchise purchasers employ.
Here more on what I think about this -
https://www.linkedin.com/pulse/do-you-recognize-3-lies-franchise-sales-joe-caruso?trkInfo=VSRPsearchId%3A28065481456427683763%2CVSRPtargetId%3A6089585061282267136%2CVSRPcmpt%3Aprimary&trk=vsrp_influencer_content_res_name
Rachael WachsteinWe are talking about different things here. I am not saying that what interests a franchise buyer has changed but the process they go through externally certainly has. Also I didn't mean to post the same thing in 3 variations above. That's what I get for trying to respond from my cell.
Joe Caruso
Rachael writes -
" I am not saying that what interests a franchise buyer has changed but the process they go through externally certainly has."
Really?
Tell us how it has changed.
Michael (Mike) WebsterRachael writes:
" Franchise buyers expect to be able to research and vet an opportunity online.
They have a world of information, research and opinions at their finger tips. "
1. No, there is no evidence that probable buyers access the relevant information, viz. reading the FDD.
2. No, nobody can "vet an opportunity online" similar manner to vetting a consumer purchase online.
3. There are no "buy" buttons on a franchisor's recruitment website.
There are only only "phone me" links. (And too often not even those links.)
More information simply creates uncertainty & confuses the probable purchaser.
4. So, create a lean website.
Make the probable purchasers want to phone you and ask for more.
Rachael WachsteinOh man. I give up. You guys are something else. I will post some stats tomorrow. It's like you are denying the existence and importance of the interweb. The days of gated virtual brochures and barebones websites are over. Do you honestly believe what you are saying? The interweb isn't just used to sell consumer goods.
It is common knowledge that people (even franchise buyer who to my knowledge are people) go online to do research, are influenced by the content they consume and make decisions based in part on what they have learned.
Michael (Mike) WebsterRachael states:
"The days of gated virtual brochures and barebones websites are over."
Some of our best performing ads on LinkedIn go to a barebones franchise recruitment website.
So, yes I will be very interested in seeing your data, how it was collected and verified.
Rachael WachsteinReal Life Examples: These franchise sales sites use storytelling and content to engage leads and close deals...
Menchie's Frozen Yogurt Added more than 120 franchisees in 2013 and over 140 franchisees in 2014, outpacing their crowded peer group by a long shot. In 2014, they were one of the few frozen yogurt chains still growing.
Marco's Pizza opened over 140 stores in 2014, outpacing the gigantic yet stagnant category killers in their segment. Leads generated through their recruitment website,marcosfranchising.com increased by 320%.
Craig SlavinBefore I chime in with my thoughts and experiences during the past 40+ years I have a question for Rachael . Just how many franchise candidates have you spoken to and actual franchise sales have you been responsible for? Please don't say you get your information from the media because most media sources are tainted because they also sell advertising to Franchisors.
Craig SlavinMy first comment is that there are two huge mistakes being made in this article and I mean "huge." First, the article references "franchise buyers" and makes the assumption that ALL franchise buyers are the same; learn the same way and assimilate information the same way. So, not true. That is like walking into the vegetable section of the grocery store and only being able to select onions or tomatoes. There are a wide variety of vegetables to choose from. Human behavior and Behavioral Sciences, especially in franchising, has proven differently. In fact, we have proven during the past 18 years, that different Navigator Profiles have differing needs, values, skills, behavioral patterns and assimilate information differently. There is not a "one size fits all" solution in franchising or life and, therefore, you cannot lump all franchise buyers into the same category and assume that all franchise buyers go through the exact same process.
Craig SlavinMy second comments addresses "These changes are good for franchise sales executives if they are willing to adapt to the reality." What reality? Everyone of us create our own reality. Is there a universal reality in franchising that I/we are not aware of? If so, I am all for learning new things that will make us better and help us all perform better. What we, at the Navigator, have discovered is that there is a huge disconnect between buyers and franchise sales people. Many sales people "push" information at candidates. Reality of human behavior is that if you "elicit" information from the individual and have the interest in them you have a better chance of understanding their needs, desires, objectives and, ultimately, what is driving them to franchise ownership in the first place. Honestly, I don't believe franchise sales is about selling. It is about determining whether a candidate is a good fit for the business model - or not!
George VodinRachel, I am with you! For those naysayers, I would suggest you read an Ebook by Marcus Sheridan, "Inbound and Content Marketing". He was one of the early adapters of Hubspot and is considered a guru in the industry today. His website and Ebook can be found at: Thesaleslion.com.
Michael (Mike) WebsterRachael and George, one of the few that does this consistently & reliably well on LinkedIn is Dr. John P. Hayes.
When Franchise-Info sponsors a franchisor's story written by John, the story routinely attracts a good number of impressions and click throughs.
Rhonda Sanderson's short stories also do well in driving traffic from the LinkedIn newsfeed to a franchisor's website.
Both Rhonda and John have great relationships with franchisor -- which make their stories work.
Rachael WachsteinNow you're talking Michael (Mike) Webster. A great story can go a long way. Franchise buyers are first and foremost people and people respond to stories. That is why PR professionals working in franchise development use the tactic of pitching franchisee profiles and content marketers blog and write LinkedIn posts about franchisees. When a brand is able to show prospects someone they can identify with, they have a better chance of getting them to engage.
Josh Minturn, CFEWith all due respect, I think this discussion is a great example of the generational gap that is becoming more apparent in franchising. I don't disagree that there are a number of potential buyers who value engagement with an individual development person, and are accustomed to walking through a series of steps- report building, information gathering (verbally), and the rest- I do this most days of the week. But what is also true is that the average buyer is beginning to include people who are more like me in terms of age and stage in life. I am barely a Millennial and rarely claim them, but the truth is, I'd much rather consume information in a forum of my choosing before talking to some salesman because I know when I do, I'm going to get sold to. It used to be good enough for a salesperson to sell/award/find a fit/however you want to label the transaction, but in today's information age, buyers- particularly younger ones, are going to do their homework first.
Joe Caruso
Josh writes -
"I am barely a Millennial and rarely claim them, but the truth is, I'd much rather consume information in a forum of my choosing before talking to some salesman because I know when I do, I'm going to get sold to. It used to be good enough for a salesperson to sell/award/find a fit/however you want to label the transaction, but in today's information age, buyers- particularly younger ones, are going to do their homework first."
Okay I'll go with you on this.
Where would this probable franchise purchaser go to do this?
Craig SlavinJosh Minturn, CFE you wrote: "But what is also true is that the average buyer is beginning . . . . " While I agree with you that there is a new wave of potential buyer and candidate in the Millennial's, and the method of communicating with them is very different and they process and assimilate information very differently, there is no such thing as an "average buyer." I am steadfast in my opinion and you will see it appear in many different articles related to franchising. There is no such thing as 'average" or "typical." Everyone, on the planet, you , me, Rachael, everyone. We are all wired differently and what works with one person may not work with another. That is why the Navigator performs so well.
Rachael WachsteinJoe Caruso where a prospect goes to get information depends on how they learned about the opportunity. Regardless of how the potential buyer discovers the opportunity, they will inevitably google the company, possibly google the leadership and visit the website.
Craig SlavinI believe you are correct Rachael Wachstein. However, if a franchise company has no idea as to who their Ideal Franchisee Profile is their messaging, videos and stories (as you called it) might be great but will be ineffective. Otherwise, the franchisor is "casting a wide net" and tries to pluck what they think is the right fish. That's no different than putting the blindfold on and rolling the dice. What has changed dramatically, in franchising, is we are far more scientific than in the "old days." Behavioral Sciences applied to franchising makes a huge difference in the outcomes.
Michael (Mike) Webster Here is what Dr. John P. Hayes had to say, on another thread,
For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.
One of the great fallacies in franchise development is that one firm can do it all -- in other words, one firm handles marketing, advertising, consumer promotions, AND franchise development PR.
It never works that way.
Very few firms, including (and especially) the big New York firms understand how to generate franchise development leads using PR -- or the New PR.
Of course they tell franchisors they can do this because it seems so easy, but it's not.
There's a level of emotional impact relative to developing sales leads for franchisors and most marketing/advertising/PR folks/firms don't know how to do it
Josh Minturn, CFE Joe, I think Rachael's statement, "where a prospect goes to get information depends on how they learned about the opportunity...(etc.)" is spot on.
Craig, I do not disagree with you that there is no "average buyer," but a Franchisee Profile attempts to define generally the type of franchise you would like to pursue- so I think we can mutually understand the meaning behind my statement. Even suggesting that a large group of people (Millennials) with an age range of 16-35 might have a lot in common is silly, yet we say "communicating with them is very different..." as if that is also not a generalization. If we could market to each individual exactly the way they want to be marketed to, we'd all have teeming nets, but we attempt to market to a generalized (ideal) profile anyway because our marketing dollars are finite.
Rachael's targeted content marketing approach can be validated with many examples in and out of franchising.
Joe Caruso
I am listening very carefully and hear what both of you are saying Josh & Rachael.
I am being literal & practical about -
"Where would this probable franchise purchaser go to do this?".
Josh Minturn, CFE Ex. Franchisors use an PPC strategy with targeted key words around long tail searches conducted by potential candidates. Let's say they search "is owning a maid service right for me?" Because the potential is entering the key words, the results are targeted to that person, and any content that populates (determined by Google) is designed to be relevant to their search. The potential clicks on the link which takes them to a landing page which outlines the specific content in text, in video, or other; in this case provided by the maid franchisor outlining "5 reasons owning a maid service is right for you." The landing page includes a form to request additional information, which is completed by the potential and initiates the process.
The trick is to anticipate the searches a person may actually type into Google and creating content around them. "What are the best business for veterans?" "How much money can I make investing into a burger franchise?" etc.
Craig Slavin Hi Josh Minturn, CFE, Rachel's strategy is correct. What she needs, however, like any other marketer, promoter or 'spin" doctor, is who is the audience. Casting a Wide Net will churn more of your marketing dollars and than you can imagine without the effective results.
To your point you say, "If we could market to each individual exactly the way they want to be marketed to, we'd all have teeming nets." Well, what if you could? Our clients do. Would that be a game changer in your business? Absolutely! You know it and we know it.
There is a better way to communicate with candidates and check out our client list and they will all tell you they are learning or have learned which words to use, colors and tonality of the messaging, emails and other communications that "touch" the candidate are all modified to the Navigator Profile of the candidate. Wait till you see what we are releasing in the next 30 - 45 days!
Rachael Wachstein Joe Caruso I completely agree with Josh Minturn, CFE about searches but you don't have to anticipate or guess what people are searching for. You can use data on the searches people are actually doing. In addition to organic SEO techniques, you can create content and promote it through online influencers and use paid options to promote content to your target audiences. There are many techniques for proactively getting your content in front of your audience in addition to using your owned channels
Josh Minturn, CFE Craig Slavin, I think you are correct, and really you are are providing more detail around the core premise of the original post. Content marketing by nature is targeted. It uses, color, tone, emotion, and etc. to reach a targeted audience and it sounds like you are doing it.
Michael (Mike) Webster I had asked Rachael for some evidence of inbound marketing & franchisors who were doing it well.
As I understand her response, she believes that Menchies and Marcos Pizza are good examples, something to emulate. In part, because of their spectacular growth in new units.
Ok.
Other than these (2), anyone else come to mind? Thanks
Craig Slavin Rachael Wachstein now you are talking. You said, "I am talking about marketing and nurturing techniques that draw the right candidates to the right concepts." That is music to our ears! We have demonstrated that what works for one franchise company does not work for another - because the profile of franchise owner varies from one to another. For instance, here are examples of how understanding the buyer eliminates a lot of wasted time, effort and resources. If Franchisor A is seeking a sales and marketing oriented franchisee (Our Influencer Profile) then you do not want to approach them with stories, messaging and tonality of safety and security. That will not resonate with them. If Franchisor B is seeking a very compliant and obedient franchise buyer that is detail oriented (Associator Profile) then you don't want to address income, prestige and status. It's not important to them. Mapping and profile based growth has proven itself many times over regardless of the media.
Craig Slavin Josh Minturn, CFE to quote you, you say, "Content marketing by nature is targeted. It uses, color, tone, emotion, and etc. to reach a targeted audience and it sounds like you are doing it." Based on the projects The Navigator has worked on, during the past 18+ years, I can honestly say everyone wants effective "content" marketing but few know what it means or how to do it. Effective content marketing cannot be implemented unless you have an exact profile of who you are targeting. That is what the Navigator does that no other company can do or even come close. We start with benchmarking and then create a statistically valid profile. Once we know the profile we know who the candidates are; the right colors to use, tonality and precise messaging that attracts them. The "others" are the ones that waste your time, energy and resources. Our clients experience a decrease in lead flow but higher closing rates because they are communicating with the right people
Craig Slavin Rachael Wachstein, I personally believe you are right. "There are many techniques for proactively getting your content in front of your audience in addition to using your owned channels." The real key is knowing who your audience is. You cannot achieve effective content marketing without creating a "map" of your highest performers and then attracting more of them to your brand. That is why the Navigator was created 20 years ago. To create a people "map" and then the strategies to target them. Segmentation models are not a new concept, in general, but it is very new to franchising. We possess the only data base of franchise and business owners so when independent statisticians create the Navigator Profiles for our clients they are statistically valid.
Michael (Mike) Webster Here is an interesting view about conversions, something to think about.
https://www.linkedin.com/pulse/20140609175339-14611789-think-your-conversion-rates-are-good-think-again?articleId=7640345194038425250#comments-7640345194038425250&trk=sushi_topic_posts&trk=hp-feed-article-title-share