Customers Rule! Can You Manage the Relationship? (For Large & Mature Franchisors)

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1 Customers Rule! Can You Manage the Relationship? (For Large & Mature Franchisors) Moderator: Speakers: Mark Royer, CTO, Aviatech Jim Evers, President, DryClean Ken Caldwell, SVP, Franchise Operations, Heavenly Ham Sheryl Inglat, Owner, Comfort Keepers of Albuquerque

2 Customers Rule! Jim Evers President, DryClean A Service Brands International Company

3 Top 5 Mistakes Assuming Z s will do what s best Letting Z s do their own thing Assuming Z s are managing customer relationships Failing to measure and manage Z s customer relationship execution Not celebrating customer relationship heroes

4 Objectives Become a franchise system that fosters a successful customer relationship management culture Benevolent dictatorship

5 Why Annual Profits Increase Throughout Customer Life Profit from reduced operating cost Profit from price premium Profit from increased services Profit from referrals Acquisition cost Base Profit

6 Consumer Research What you do with research data is more important than gathering the data Think strategically How to use data to celebrate success and teach best practices

7 Creating Advocates Build feedback vehicles into your sales process Segment customers by value Aggressively seek out customer complaints Know who you ve lost and win them back Systems, not smiles

8 Lead Management System

9 Lead Management System

10 Customer Dialogue Ask permission Build response systems into your sales and marketing process Sticky websites the difference between writing copy and writing content

11 Semi-Custom Website

12 Semi-Custom Website

13 Get Them Engaged Multiple response channels reduce barriers to communication Ways to make your website indispensable to customers

14 Customers Rule Can you Manage the Relationship? Mr. Ken Caldwell Senior V.P. of Franchising HoneyBaked Ham Company Heavenly Ham Company

15 The HoneyBaked Ham Company 400 units (104 franchise/296 corporate) 50 th Anniversary 8 years in Franchising 89% Brand Awareness The Heavenly Ham Company 100 stores all franchise Franchising since 1985 Who we are

16 Top 5 Mistakes 1. One Way Dialogue 2. Failing to recognize that Relationships have Stages 3. Not realizing that Customers are Not Created Equal 4. Treating all Customers the Same 5. Not knowing who your Customers are

17 1. Encourage a two way dialog: We encourage a two-way dialog w/ our franchisees and customer

18 2. All relationships have stages: Create Advocates Leverage stores Website 800 # Products and Service

19 3. All customers are not created equal Use the 80/20 rule. 20% of your customers generate 80% of your profits. At HoneyBaked, we use the 60/40 rule. 40% of our customers generate 60% of our profits. Average customer visits 2.3 times a year for a ham purchase. Must speak to all segments New (never shopped w/ us) Core (2 plus times) Best (more than 2 times a year)

20 4. Don t treat all customers the same. We segment our customer info and communicate them in different way Lapsed

21 Plus we have two different types of customers: $7.00 average check $50 average check

22 5. Know who your customers are: Database Survey External Research Surveys in store Modeling-Find customers/prospects that look like customers

23 Using the Internet -Franchise sales -E-commerce -Solicit feedback -Store locator -Info about company

24 Create Loyals and Advocates Increasing Customer Satisfaction and Sales Sheryl Inglat Comfort Keepers

25 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales A bit of history -1930! First Loyalty Marketing Program -S & H Green Stamps, American Airlines AAdvantage, 1981

26 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales Loyalty programs no excuse for poor service! Consumer still values good service In turn, becomes a loyal customer and advocate

27 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales Know what you are really selling! Dominos Pizza

28 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales Start with your front line Staff stability and loyalty Customers buy relationships and familiarity.

29 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales Key rule: Serve your employees first, so that they can serve your customer Respect them Train them Recognize them

30 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales Create loyalty warriors Empower your front line to fix the problem Ownership = High job satisfaction

31 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales Seek out customer complaints What about the other 90%? Use this knowledge to improve your service Demonstrate how and thank them Post mortem on lost customers

32 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales Relationship Management program (RMP) Striding Man Society Cultivates a qualified group of loyalists and advocates Perks not available to outsiders!

33 Create Loyals and Advocates. Increasing Customer Satisfaction & Sales Help beyond the obvious Talk to your customers frequently Spend a day working with your top customers (at their place!) Find out their challenges Stay in tune with time of need Offer solutions (even if it s not your area of business) Educate them

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