In the world of franchise sales, you hear it all the time: “Leads, leads, leads — more leads, please.” I believe the problem with this mindset is that it no longer reflects the way brand buzz is fostered in today’s multichannel world.
Having worked alongside franchise development teams for brands across industries for over a decade as the CEO of a PR and content marketing agency, I’ve learned not only the nuances of franchise sales but also how knowing your target audience is non-negotiable. Put simply, today’s franchisees are just like today’s consumers: discerning, digitally literate and wary of the hard sell. Given this, below are five secrets for franchisors looking for effective franchise development.
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Know that your prospect is already looking at your brand.
Far too often, brands seem to consider actions like clicking the “request more information” button on a franchise development site as entry into the sales funnel. But just like when buying anything —whether it’s a pack of gum or a car — there are many impressions that must happen before a buyer decides they’re interested. Today’s prospect, the “incognito lead,” is searching the web, reading your brand’s content and digging into data all before they ever submit an inquiry form. That means they’re in the sales funnel long before you even know who they are.
I’ve found that today’s franchise candidate needs to feel a strong sense of brand intimacy because that’s the point at which they inquire — yet many brands rarely invest in creating compelling content for their website or other stories that can exist around the internet, or in elevating their true point of differentiation. The secret to selling franchise brands when it comes to incognito leads is simply knowing that they’re looking at your brand. Sell your story in as many spaces as possible, knowing that you are indeed speaking to a potential human buyer in every story you deliver.
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Don’t try to sell to buyers; educate them.
I think “franchise sales” should be renamed “franchise development” across the board because buyers want to feel like they’re in charge of the process. Yes, at some point, you as the franchisor will have the ability to decide whether a given prospect is a good fit for your brand, but within that candidate’s due diligence process, educate them and give them scaffolding to help facilitate their decision to buy in. As the franchise brand, it’s your job to educate buyers on the value of your product, your vision for the future, the reason behind the investment level and how much franchisees can potentially make. Along with all of these, your most important role is to celebrate those who validate the brand. By doing so, you can give all the answers to your prospects, and they’ll likely convince themselves why they want to join your franchise system.
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Focus on unit-level economics.
In my experience, there’s no better secret to selling a franchise than to leverage your own franchisees. When existing franchisees make money, prospective franchisees will want to join your brand. There are certainly some things you can do to create the right brand perceptions, like implementing a proper digital strategy and an effective local store marketing plan and even, operationally, creating the perception of sky-high demand. That said, don’t forget: If your franchisees aren’t making money, then there are no more secrets to selling a franchise, as you’re already dead in the water.
And sure, you’ll occasionally have to field those who turn time and again to “You’ll always have those outlier franchisees that don’t make money.” The good news for you as a franchisor? There’s something to learn there. Learn from what got you to approve them as an owner in the first place. Learn how to avoid less-than-aligned buy-ins in the future. Study the real estate to make sure you’re not skimping on location — thus costing your franchisees — and don’t be afraid to provide additional support to those who aren’t hitting their numbers. If you think this doesn’t affect your lead generation, think again; if you have franchisees who aren’t making money, they’ll be the first to say “don’t buy.”
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Put your validators front and center.
When prospective franchisees are going through their due diligence, if they connect with a franchisee who hesitates on answering “Would you buy this again?” that hesitation can kill deals. This is arguably the biggest decision of your prospect’s career — and, potentially, their life. They’re about to take their life savings and invest it completely into a franchise brand that they believe in. So if a current franchisee hesitates, the comfort and confidence of the buyer will waver, which can put your deal at risk. Make sure that you’re placing your validators front and center and leveraging them as a part of your sales process, because them living your brand will help the prospects not only be open to joining your franchise system but also want to fight to join.
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Tailor your content to stay top of mind.
Everyone’s looking for leads classed as “qualified and ready to buy.” But in today’s world, being stingy about your development budget can end up hurting you in terms of the growth you hope to achieve. Aim to play in the top and middle of the sales funnel by nurturing prospective leads — that means building brand buzz, tapping engagement-driving content marketing and putting the information leads want most (such as franchisee testimonials and executive transparency) in the channels they frequent. Nix the hard sell, and tailor content to provide the greatest insight — and therefore, value — to your target.
In the end, selling a franchise means selling a concept and a potentiality — not a guarantee — of success. Construct your lead generation strategy around category education, transparency regarding unit economics and existing franchisee experience and top-of-mind marketing. Do so and you can lock in a real chance at winning.
Source: Forbes – www.forbes.com