Franchise Asia APRIL 2015

International Focus
Attracting and Keeping Customers
The name of the game in service-based franchises is customer
acquisition. Since you don’t have a location the customer is
driving by or otherwise focused on visiting the strategy for
attracting customers is significantly different. This is further
complicated by the increasingly segmented marketplace
for advertising and media as consumers are overwhelmed
with choices. The “Consumer Decision Journey” developed
by McKinsey, a leading global consulting firm, highlights this
fundamental shift whereby consumers are actively researching
and seeking information rather than waiting for companies to
feed it to them through advertising.
Although on the surface it may seem a service sector franchise
is less complicated given you don’t have to commit to a specific
location, negotiate and sign a long-term lease, and you are
susceptible to shifting demographics, the ability to acquire
customers is critically important and increasingly complicated. If
your passion is to operate a fixed-location franchise then focus
on a franchise that provides significant support for site selection
and real estate/lease negotiations. If a service-based model is a
better fit for you then focus on a franchise that has developed a
proven method for acquiring customers.
Rising Above the Ordinary
The landscape of opportunity has expanded dramatically over
the past decade in franchising, enveloping the service sector at a
rapid pace. Individuals that take the time to understand the type
of business they can be passionate about and is aligned with
their personality and interests will rise above the ordinary.
The traditional approaches to customer activation are rapidly
diminishing as results fail to produce the necessary results.
Instead, sophisticated customer profiles are created using
socioeconomic modeling so that service-based franchise brands
can target high-profile consumers with valuable information.
This approach leads consumers to accept the brand in their
consideration set of options. Once the customer experiences the
service it can either solidify their loyalty, which is of tremendous
value, or drive the brand out of their future consideration. Unlike
a restaurant, hotel or retail franchise where the attraction is the
location, service-based franchises need to proactively seek out
customers to survive and they need to ensure an exceptional
experience to thrive.
Finding the Right Fit
There has never been a more exciting or opportunistic time to
engage in franchising given all the changes that are underway in
the global society. Many developing countries are experiencing
economic growth due to the emergence of franchise brands,
primarily in fixed-location concepts, which is opening the door
for many local entrepreneurs. The expansion of service-based
concepts has fundamentally shifted the focus of franchising in
the U.S. and many major economies around the globe. The key for
would-be entrepreneurs is finding the right fit and it begins with
taking a personal assessment. Investing in a franchise requires
a commitment to the business model and the brand, so making
sure the type of business, the work environment and the concept
category are aligned with your personality, your market and your
investment capabilities is essential to a successful outcome.
Dr. Litalien is the founder and principal of
Franchise Well, a specialized consulting
practice supporting franchise companies,
prospective franchisees and nonprofit
organizations interested in the franchise
sector. He is a Certified Franchise Executive
as designated by the Institute of Certified
Franchise Executives where he also serves
on the Board of Governors. He teaches the
Franchise Management Certification Program
at Georgetown University in Washington, DC
and is a frequent author and speaker on franchising. For more
information, please visit the website at www.franchisewell.com or Ben
can be reached at ben@franchisewell.com.
Franchise Asia • 2015 Vol 27
19