Ifa2013 1.23.13

transcript

THE EVOLUTION OF THE FRANCHISE SALES LEAD

Transforming Franchise Recruitment

Strategies for Delivering Increased Lead Generation

Closings and Recruiting Better Franchisees

Matt Alden, CFE | PresidentFranchise Solutions & Franchise.com

MODERATOR

Marc Kiekenapp | President/CEOKiekenapp & AssociatesPANELIST

Michael Haith| CEO & FounderFranchise SherpasPANELIST

Thomas Scott| Content Marketing & Lead GenerationFranchise Performance GroupPANELIST

Amit Pamecha, CFE| CEO & Co-FounderFranConnectPANELIST

IFA Convention 2013 The Evolution of the Franchise Sales Lead

The Evolution of the

Franchise Sales Lead

Leads/Prospects/Buyers

[BEHAVING DIFFERENTLY!]

Leads/Prospects/Buyers[BEHAVING DIFFERENTLY!]

Why is Behavior Changing?

M = From 0% to 1/3 Traffic & Leads…

Why is Behavior Changing?

[TODAY] =

More Accessible than Ever Before

Less what You Say About Yourself, More what Others are Saying

About You.

POWER for BUYERS![when you controlled the info, you knew their questions]

IFA Convention 2013 The Evolution of the Franchise Sales Lead

What it Means for FranDev… How to Compete for Buyers?

PEOPLE & PROCESSIntuition | Adaptability | Flexibility

[Prospect Intel & Sophistication Levels Highly Variable]

CONCEPT APPEAL & PERFORMANCEI19 | Validation | Reputation

[Appeal = Clear Evidence of Credibility & Marketplace Performance]

Franchise Sales Lead Lead Generation

Social Technology[Embracing Transparency]

WHO’S BUYING FRANCHISES TODAY?

Marc KiekenappKiekenapp & Associates

Who’s Buying Franchises Today?

• 52% of today's franchise units are now operated by multi-unit franchisees

• Experienced multi-unit/multi-brand operators continue expanding in spite of the economy!

• They have access to capital• Portfolio investment buyers• Legacy buyers • Equity partnerships who grow and

flip businesses• Career transition

Survey Results of High Producing Multi Unit Owners

• Consider allowances that reasonably address the larger business relationship that this “partnership” will create

• ROI is key to the decision Be prepared to build proformas Experienced franchisees can help

• Decisions are based on logic Successful business model Detailed earnings claims Talking with High Producers

Share key metrics with prospects They want to speak with operational minded

staff that talk their lingo

Incentives for Multi Unit Franchisees

• Franchise fees• VetFran fees• Financing• Royalty fees • Reduced ongoing technology fees• Transfer fees• Marketing fees

Financial Performance Representations

(Item 19)

• Relationships are key• They want access to the CEO/COO

[This is a balancing act]• The process is slower and it takes an

experienced sales professional to read between the lines

• Patience is “Golden” [they will move at their own pace]

Attracting and Marketing for MU Owners

First Steps• Create a Profile of ideal candidate• Select Area Development Markets• Target Market to the areas and candidates

you want in your system Purchase Lists Portals [on site & email] Deploy multi faceted campaigns Conduct Webinars

Research Process

• Information quickly [FDD is usually requested upfront] Be prepared and ready to respond with the

information• Financial Information about the operating units

Prepared packets approved by legal• Validation from existing multi unit owners

Experienced multi unit owners know how to do this very well

Make sure your system is ready for the calls Make sure you know what your franchisees

are saying

Sales Team Experienced and Knowledgeable

• Decisions are logic-based [much less emotion-based] Successful business model An understanding of how the business

operates [They want to speak with ops-minded staff that talk their lingo]

Detailed FPR’s Talking with high producers

Share key metrics with prospects

Sales Team Experienced and Knowledgeable

• Understand the business Real Estate Build Out Operational Financial Employees Food/Product Cost Marketing

• Legal A full understanding of the FDD

EMERGING FRANCHISOR FRANDEV SURVIVAL GUIDEMichael Haith

CEO & FounderFranchise Sherpas

SUCCESSFUL BEHAVIORS FOR EMERGING FRANCHISORS

• The Top 10 Successful behaviors of the ‘new age’

1. Who are YOU? 2. Cultural Story Telling3. Community Profile4. The Cover -The Home Page5. The Story-Content6. Finally! Lead Generation7. Make it easy!8. A Sales Process that builds trust9. Trained Sales People10.Metrics-Measure Everything

CANDIDATES WANT…… YOU!• Reflection of the Founder(s)• Describe yourself

• Candidates want culture–What makes your culture unique

CANDIDATES WANT CULTURE

CANDIDATES WANT COMMUNITY

• The members of the community

YOU + CULTURE=COMMUNITY

HOME PAGE-EMOTIONAL CONNECTION

• The ONE shot at an emotional connection!

• Benefits communicated through third party

CANDIDATES WANT THE STORY!

LEAD GENERATION

• PR-in house or PR-Firm

• Portals• Brokers

• Social Media

• Trade Shows

CANDIDATES WANT SIMPLE• Simple requests

• Understand your candidates• Know how to Sell!

• Don’t waste money!!

CANDIDATES WANT TRUST

TRAINED SALESPEOPLE!

• Design and follow a structured process

• In House vs. Hiring Vendor

MEASURE EVERYTHING!• Invest • Question• Understand Metrics• Mystery Shops

Lead Generation Costs– $20-50 per lead– Conversion program and costs 10% lead to

CQ– Application $300-500 per CQ– Conversion ratio and costs 3-5%

HOW IS FRANCHISE LEAD GENERATION CHANGING?Thomas Scott

Franchise Performance Group

HOW MANY LEADS DOES IT TAKE

TO RECRUIT A SINGLE FRANCHISE OWNER?

CONTENT LENGTH FOR TOP 10 RANKING

Home Care Franchise, Page 1

Home Care Franchises NOT on Page 1

Carpet Cleaning Franchises on Page 1

Carpet Cleaning Franchises NOT on Page 1

Printing Franchises on Page 1

Printing Franchises NOT on Page 1

Froyo Franchises on Page 1

Froyo franchises NOT on page 1

0 200 400 600 800 1000 1200 1400 1600

Word Count on Home Page

Q: Why Does

Favor Longer Content?

A: Google doesn’t prefer more content because they feel it is more valuable; they prefer content

rich sites because the data shows you like it

FRANCHISEBUYER

GENERATION

FRANCHISELEAD

GENERATION=

If you don’t sell consistent with how people buy, they don’t

A CHANGE IN THE WAY PEOPLE SEARCH

“LEAD GENERATION: intersecting people who need what you have at the point they are looking for it BUYER GENERATION: Engaging buyers with the information they want in the format they want when and where they are looking for it

TRADITIONAL FRANCHISE LEAD GENERATION

Lead Source

Conversion Form

Franchise Salesperson

Email Campaign

Lead Source

Conversion Form

Franchise Portals

Lead Source

Conversion Form

Lead Source

Conversion Form

Radio or Print

NEW FRANCHISE LEAD GENERATIONNew Franchise Lead Generation

Franchise Company Website

ORGANIC SEARCH PPC XM

RADIO PORTALS EMAIL BLASTS

BRANDSITE

LEAD FORM

FRANCHISE RECRUITER

Your Brand Story Goes Here

CHANGE #1 DIFFERENT FRANCHISE WEBSITES

Change From This:

To This:

CHANGE # 2:BRAND STORYTELLING

Single most important part of your lead generation is your

Internet Content Strategy.

CHANGE #3: ORGANIC SEO

Brand Name

Franchise Category

Awareness

Franchise Industry Info

Franchise Buyers are here

Interest

Brand Research

Comparative Shopping

Franchise Leads are here

CHANGE #4: PPC

Leads from PPC Leads from Organic Search Leads from page with both PPC ad and organic ranking

56Merging PPC with Organic SEO and content marketing produced a 43% Increase

CHANGE # 5: FRANCHISE PORTALS• Ad content matters!• All portals rank differently organically• Linking direct to your website can

create a breakthrough• Using downloadable reports or white

papers can improve lead quality• Portal Email campaigns produce

better leads than portal advertising

CHANGE #6 RETARGETING

CHANGE #7: SHORTER FORMS• Long forms are a recipe for disaster• Shorter the form, the higher the

conversion rate and the more closes• 70% of information on forms is

inaccurate*• Forms giving someone a download

produce leads that go farther in the sales process

• Forms need to be on EVERY PAGE*source: John Henning, Lead Scheduling Service Survey

IMPROVING YOUR FRANCHISE RESULTS BY OVER 200%

Amit Pamecha, CFEFranConnect - CaptivateCEO and Co-FounderAmit @ franconnect.com

KEY TRENDS

• 2012 was one of the best years in the last 4 years for most franchise systems

• Qualified lead volume up in 2012

• Improved Financing scenario for mature franchise system with strong Item 19

5 IDEAS FOR 2013 AND BEYOND

YOU ARE LIKELY TO SPEND A FORTUNE ON LEAD GENERATION

Traditional

Brokers

Referrals

Internet Portals

Email Blasts

Print Advertising

Trade Shows

TV Advertising

Non-Traditional

SEM/ Google PPC

Social Media

City Specific Seminars

Monster, Career Builder

Real Estate Firms

XM Radio

What is the one common buyer behavior across all these activities?

100% of Your Prospects Will Google You After Seeing your Franchise Advertising

A Majority Will Visit Your Franchise Website

MOST FRANCHISE SYSTEMS DO A TERRIBLE JOB OF CAPTIVATING THEIR PROSPECTS

Bounce Rates of 50% or

Higher

Average time spent by

prospects – less than 2.5

minutes

Visitor to Prospect

conversion rate of less than 1.8%

Idea #1: Engagement

Your Franchise Development Website is your #1 Asset for generating more leads and signing up more franchises!

THE SALES PROCESS

Given the small team sizes, most franchise systems do not rigorously follow a structured awarding process

• More than 50% leads do not get a follow-up call for more than 4 hours

• No qualifier in place for most systems• Lack of relationship building and trust• Forcing “ALL” applicants through a boring multi-

part brochure• Lack of time sensitivity in a deal

Idea #2 The Development Process

Implement a structured awarding process that is transparent to the candidate and to your team!

Your process should be flexible to accommodate different kinds of candidates

Idea #3 Dashboards and Performance Management

Measure Every Metric

Given the lost deals and royalty revenues at stake, flying blind is not an option

MEASURE EVERY METRIC WITH CUSTOM DASHBOARDS FOR INCOMING LEAD ANALYSIS, PROCESS ANALYSIS, LEADS KILLED, ROI AND COSTS AND YOUR OWN CUSTOM REPORTS

Idea #4Reduce the cycle time involved

• Best Practices- Responding to all leads within 1 hour- Educating them prior to phone calls- Electronic FDD Receipt (not just

delivery)- Online Financial Qualification Forms- Early Validation

Idea #5Implement Technology for Cost Savings, Lead Generation and Higher Closing Rates– CRM Systems– Email marketing tools– Virtual Brochures– Video Conferencing– Candidate Information on LinkedIn,

Google, Zillow

Matt Alden, CFE | PresidentFranchise Solutions & Franchise.com

MODERATOR

Marc Kiekenapp | President/CEOKiekenapp & AssociatesPANELIST

Michael Haith| CEO & FounderFranchise SherpasPANELIST

Thomas Scott| Content Marketing & Lead GenerationFranchise Performance GroupPANELIST

Amit Pamecha, CFE| CEO & Co-FounderFranConnectPANELIST

Ifa2013 1.23.13

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