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Transcript of Ifa2013 1.23.13
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THE EVOLUTION OF THE FRANCHISE SALES LEAD
Transforming Franchise Recruitment
Strategies for Delivering Increased Lead Generation
Closings and Recruiting Better Franchisees
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THE EVOLUTION OF THE FRANCHISE SALES LEAD
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
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IFA Convention 2013 The Evolution of the Franchise Sales Lead
The Evolution of the
Franchise Sales Lead
Leads/Prospects/Buyers
[BEHAVING DIFFERENTLY!]
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The Evolution of the
Franchise Sales Lead
Leads/Prospects/Buyers[BEHAVING DIFFERENTLY!]
Why is Behavior Changing?
M = From 0% to 1/3 Traffic & Leads…
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The Evolution of the
Franchise Sales Lead
Leads/Prospects/Buyers[BEHAVING DIFFERENTLY!]
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
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The Evolution of the
Franchise Sales Lead
Leads/Prospects/Buyers[BEHAVING DIFFERENTLY!]
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]
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The Evolution of the
Franchise Sales Lead Lead Generation
Social Technology[Embracing Transparency]
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WHO’S BUYING FRANCHISES TODAY?
Marc KiekenappKiekenapp & Associates
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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
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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
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Survey Results of High Producing Multi Unit Owners
• 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
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Incentives for Multi Unit Franchisees
• Franchise fees• VetFran fees• Financing• Royalty fees • Reduced ongoing technology fees• Transfer fees• Marketing fees
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FDD
Financial Performance Representations
(Item 19)
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Survey Results of High Producing Multi Unit Owners
• 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]
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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
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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
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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
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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
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EMERGING FRANCHISOR FRANDEV SURVIVAL GUIDEMichael Haith
CEO & FounderFranchise Sherpas
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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
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CANDIDATES WANT…… YOU!• Reflection of the Founder(s)• Describe yourself
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• Candidates want culture–What makes your culture unique
CANDIDATES WANT CULTURE
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CANDIDATES WANT COMMUNITY
• The members of the community
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YOU + CULTURE=COMMUNITY
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HOME PAGE-EMOTIONAL CONNECTION
• The ONE shot at an emotional connection!
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• Benefits communicated through third party
CANDIDATES WANT THE STORY!
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LEAD GENERATION
• PR-in house or PR-Firm
• Portals• Brokers
• Social Media
• Trade Shows
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CANDIDATES WANT SIMPLE• Simple requests
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• Understand your candidates• Know how to Sell!
• Don’t waste money!!
CANDIDATES WANT TRUST
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TRAINED SALESPEOPLE!
• Design and follow a structured process
• In House vs. Hiring Vendor
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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%
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HOW IS FRANCHISE LEAD GENERATION CHANGING?Thomas Scott
Franchise Performance Group
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HOW MANY LEADS DOES IT TAKE
TO RECRUIT A SINGLE FRANCHISE OWNER?
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CONTENT LENGTH FOR TOP 10 RANKING
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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
1004
395
1107
421
984
363
1407
132
Word Count on Home Page
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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
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FRANCHISEBUYER
GENERATION
FRANCHISELEAD
GENERATION=
If you don’t sell consistent with how people buy, they don’t
buy.
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A CHANGE IN THE WAY PEOPLE SEARCH
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“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
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TRADITIONAL FRANCHISE LEAD GENERATION
Lead Source
Conversion Form
Franchise Salesperson
Email Campaign
Lead Source
Conversion Form
Franchise Salesperson
Franchise Portals
Lead Source
Conversion Form
Franchise Salesperson
PPC
Lead Source
Conversion Form
Franchise Salesperson
Radio or Print
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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
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CHANGE #1 DIFFERENT FRANCHISE WEBSITES
Change From This:
To This:
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CHANGE # 2:BRAND STORYTELLING
Single most important part of your lead generation is your
Internet Content Strategy.
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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
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CHANGE #4: PPC
Leads from PPC Leads from Organic Search Leads from page with both PPC ad and organic ranking
0
10
20
30
40
50
60
18 14
56Merging PPC with Organic SEO and content marketing produced a 43% Increase
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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
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CHANGE #6 RETARGETING
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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
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IMPROVING YOUR FRANCHISE RESULTS BY OVER 200%
Amit Pamecha, CFEFranConnect - CaptivateCEO and Co-FounderAmit @ franconnect.com
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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
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5 IDEAS FOR 2013 AND BEYOND
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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
SEO
Social Media
City Specific Seminars
Monster, Career Builder
Real Estate Firms
XM Radio
What is the one common buyer behavior across all these activities?
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100% of Your Prospects Will Google You After Seeing your Franchise Advertising
A Majority Will Visit Your Franchise Website
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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%
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Idea #1: Engagement
Your Franchise Development Website is your #1 Asset for generating more leads and signing up more franchises!
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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
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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
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Idea #3 Dashboards and Performance Management
Measure Every Metric
Given the lost deals and royalty revenues at stake, flying blind is not an option
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MEASURE EVERY METRIC WITH CUSTOM DASHBOARDS FOR INCOMING LEAD ANALYSIS, PROCESS ANALYSIS, LEADS KILLED, ROI AND COSTS AND YOUR OWN CUSTOM REPORTS
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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
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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
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THE EVOLUTION OF THE FRANCHISE SALES LEAD
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
Q&A
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