20 Jan Maximizing Franchise Co-Op Marketing Campaigns
The engine of most franchise organizations is the marketing services they offer their franchisees, ensuring their locations can flourish while their broader brand also prospers. Most of these organizations push their franchisees to invest more through Co-Op Marketing Programs, splitting spending 50/50 or in other proportions that allow franchisees to get more for every dollar they commit.
While these programs are a model for cooperative action across industries, they still produce their own issues, misunderstandings and perverse incentives between Franchisors and their Franchisees. Ultimately, the solution to misaligned Co-Op programs (and unspent Co-Op dollars) is more defined attribution that enables revenue attribution right down to the individual engagements an advertising campaign generates, allowing maximum growth and efficiency across an entire organization.
No Attribution without Relevant Action
Attribution is the ultimate challenge for any marketing and advertising process, but many franchise organizations are ill-equipped to understand the real limitations of their own knowledge, as well as what is now technically possible – specifically in implementing customer engagement and conversion apps to drive growth.
Apps like Appointment Requests, Online Scheduling, Free Callbacks, Live Chat, Dynamic Forms, Call Tracking and Queuing Management are easy easy to add convenience and responsiveness to each locations, but their real, broader organizational benefit comes from the ability to see, in real time, where customer interactions are being generated and gather data as to why that may occur.
That’s why, in leveraging Co-Op spending around locations that have fully deployed conversion apps, you can see a meaningful impact in the number of appointments booked, calls requested, chats initiated and more, whether it’s directly attributed to local digital advertising, or even on more traditional print and radio media.
However, without these critical apps in place, traditional reporting and revenue estimates don’t give clear time delineation, and in the case of spending on local listings, websites and landing pages, every opportunity to boost conversion and define attribution is lost, leaving Franchisees in the dark as to what co-op spending yields the best results.
Franchisees want to know what to Expect
While especially stingy in low-margin businesses, franchisees are always wont to limit their spending and rely on cover from the brands they’re licensed to. While this explains the active participation of franchisors in co-op marketing activities, it also creates a challenge to incentivize and make expectations incumbent upon franchisees.
In signing franchisees, you have certain expectations from them: that they’ll meet their capital requirements, that they’ll be solvent business owners, active managers and otherwise acquit themselves admirably against the various terms and conditions you set out in franchisee agreements.
The same mutual co-expectation still applies in serving franchisees. They want to know what to expect, and while you have plenty of experience naturally understanding that co-op marketing campaigns routinely perform, they might not see the benefit – at least in the early days of their business.
With this in mind, being able to define the exact ROI they’ll see, and the revenue that will return from different advertising efforts, is crucial to ensuring that they participate wholeheartedly in your co-op marketing programs. With conversion apps at the ready, every dollar on the table gets spent, and every dollar of profit available is earned.
Revenue Per Action Drives Spend to Maximum Efficiency
If you know what each appointment is worth, as well as the likelihood of each call and chat to positively impact the path-to-purchase of a customer, you not only empower your franchise organization to determine and drive its own revenue growth, but you also empower your franchisees with the knowledge required to maximize their co-op spending decisions.
With that information in tow, whether you’re looking to bring new franchisees on board with gusto or simply seeking to rejuvenate your relationship with long-lost franchisees, customer engagement apps can provide a nucleus of analytics that drive more success from Co-Op marketing, with ROI only growing in the long term.