By Dave Mansfield, Head of Data at Tandem Theory
In today’s hyper-competitive franchising market, many brands face the dual challenge of attracting new customers while sustaining satisfaction among an existing customer base. Where can brands find the most effective strategies that allow for continuous innovation while maintaining a best-in-class experience? As the Head of Data at Tandem Theory, I’ve had the privilege of working with numerous franchise brands to achieve their business goals, and the answer is simple. Data. And while data fuels every decision we make at Tandem, I’ll share the three key insights into how franchises can effectively use marketing to not only bring in new customers but also keep them coming back.
Leveraging Data for Targeted Marketing
Understanding your customer base and the local trade area each franchise location serves is the foundation of any successful marketing strategy. Using data to gain deep insights into customer behavior, preferences and demographics allows for the creation of highly targeted, local marketing campaigns that resonate with specific customer segments. It’s not only important to establish these campaigns for the brand, but to provide business owners the opportunity to utilize and understand the data themselves.
For example, in the case of a brand known for its rental solutions to the underserved customer, Tandem developed a custom field marketing tool for franchisees. This allowed direct access to marketing materials and the ability to run local data-driven campaigns. By utilizing geo-targeted paid media ads and lookalike targeting based on top customers in their market, the client was able to attract a new wave of customers who were previously unaware of their offerings.
Another key aspect of targeted marketing is personalization. For one personal care services client, we conducted customer segmentation to better understand the salon visit motivations and lifestyle behaviors of different customer types. This empowered franchisees and their team members to tailor service and product recommendations one-to-one, resulting in a more personalized and effective sales process.
Optimizing Customer Experience to Drive Loyalty
Attracting customers is only half the battle; sustaining their satisfaction is crucial for long-term success. Consistency across all customer touchpoints is essential to creating a positive experience that keeps customers coming back.
Tandem’s experience with strategic planning led to enhanced customer satisfaction for a brand with a 100% franchisee model through the development of a POP (Point of Purchase) strategy that ensured consistent and impactful signage across all locations. By analyzing competitors, performance results data and conducting secret shopper audits, we identified the most effective signage placements and messages along the customer journey. This not only improved the in-store experience but also provided valuable information to franchisees specific to their unique store layout, ensuring that customers received a consistent message, regardless of which location they visited.
Building Loyalty Programs That Work
Businesses are seeing consumers reduce spending and brand loyalty as they adjust to the impact of inflation and face more options than ever before. Loyalty programs are one way that franchisees can partner with their corporate office to build a customer database that can then drive people back into their location. But only if they are well-designed and data-driven.
Franchisees, understandably, might be hesitant to promote a program that is underperforming, which in turn reduces the brand’s ability to acquire customer information for continued marketing. When one client experienced a high volume of customers signing up for an immediate discount and then disengaging, we conducted an in-depth financial analysis. Now we are partnering with franchisees for pilot testing to ensure a revamped program will truly work for both the customers and the business. This due diligence is key to ensure a loyalty program is designed to not only attract new members but also keep them engaged — driving retention, repeat visits, and increasing customer spend.
Once a program is launched, using data to make sure both discounting and content is relevant, timely, and financially beneficial never stops. You don’t just want to offer a discount that drives transactional behavior. You want to identify the right person for the right offer that drives incremental transactional behavior. And we use data to do that.
We’ve seen success in using data to reimagine CRM programs for targeted emails and text messages to customers. Franchisees who send targeted offers as well as content have seen significantly better results, with higher revenue, more visits, and nearly double the sales per location compared to those who do not participate.
Data-Driven Success: The Future of Franchise Marketing
For franchise brands looking to take their marketing to the next level, the key is to stay flexible, stay informed, and stay committed to delivering value at every customer touchpoint. Attracting new customers and sustaining satisfaction requires a data-driven approach that prioritizes personalization, consistency, and financial validation. By leveraging data to understand your customers, optimize their experience, and build loyalty, franchise brands can thrive in today’s competitive market.
Bio:
Dave Mansfield is a seasoned data scientist with over three decades of experience transforming raw information into actionable insights. As head of Data Science and Analytics at Tandem Theory, he specializes in crafting innovative measurement and analytical solutions for top-tier brands across retail, restaurant, telecommunications, and utilities. With a deep passion for unraveling the complexities of consumer behavior, Dave has led data-driven initiatives for industry giants such as Rent-A-Center, Panera Bread, Pizza Hut, and 7-Eleven. His ability to extract meaningful patterns from seemingly disparate data sets, coupled with his enthusiasm for turning raw data into valuable assets, makes him a sought-after expert in the field. When not immersed in the world of analytics, Dave channels his energy into aspiring to be Rush’s next drummer