Economic downturn turns focus to unit revenues.
by Martin Greenbaum 11/01/2008
With the average franchisor realizing a 50% decrease in franchise development (new store sales) from prior year(s), there is a huge focus on boosting store sales (unit revenues) and maximizing royalty revenues. Franchise systems will need to implement marketing strategies that focus on the customers and prospects that live and work within five miles of their location. They will need to enhance their “neighborhood marketing"; approach, providing franchisees with training and tools for easy and successful implementation. Customer loyalty programs, promotions, online marketing, and email campaigns are all key strategies that will need to be implemented with frequency and impact. Developing the programs is one thing, gaining adoption from franchisees is yet another. Internal marketing campaigns are most often necessary to complement major marketing initiatives that require franchisee participation.