Franchises Prove to be More Sophisticated Than the Average SMB


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When it comes to advertising and promotion, franchises prove to be considerably different from non-franchise SMBs, according to findings from BIA/Kelsey‘s most recent wave of our Local Commerce Monitor.

Franchises were much more oriented toward digital and online media. According to the LCM data, they expect to allocate 42 percent of their total ad budget toward digital and online media in the next 12 months. This is substantially higher than overall SMBs, who planned to allocate only 26 percent to digital and online.

Franchises are also considerably more sophisticated than non-franchise SMBs in other ways. CRM systems are used by 74 percent of franchises currently while only 29 percent of overall SMBs currently use them. Customer loyalty programs are also common with 72 percent of franchises offering them as opposed to only 38 percent of SMBs overall doing the same. Finally, franchises have a more integrated online presence than non-franchises with 25 percent of franchises automatically pushing content between their online sites, compared to just 15 percent of SMBs overall.

When looking at the most recent research findings from our LCM data for franchises, it is hard not to think to yourself, “Whoa, these folks are really carrying a heavy load.” They have to satisfy the financial demands from their corporate parents, generate a local online presence that does not conflict with the national presence or branding, build out an advertising/marketing infrastructure (CRM, loyalty program, email marketing, etc.) that works for their needs and also dovetails with their corporate parents. All of that on top of the obvious need for them to run a business. With that said, hats off to franchises for everything they have to juggle.

Interested in learning more about Franchises? Check out the Local Commerce Monitor Franchise Spotlight deck or feel free to contact us for more information.

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This Post Has One Comment

  1. Terry

    “they expect to allocate 42 percent of their total ad budget toward digital and online media in the next 12 months. This is substantially higher than overall SMBs, who planned to allocate only 26 percent to digital and online.”

    My take from your findings is franchises spend 58 percent of their ad budget in traditional media and overall SMB’s allocate 71 percent of their ad budget to traditional media. I guess people still watch TV, read a newspaper/magazine, listen to radio, look at a direct mial postcard and pick up a phone book to find and contact a business. And all I hear is EVERYONE is online, however your findings reveal another side of the story.

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