I recently exhibited at the IFA (International Franchise Association) convention in Orlando. As the CEO of a neighborhood marketing company, I posed a question to every franchisor and franchisee that walked into my booth. Does your local store marketing budget evaportate with little or no measurable return on investment? 100% answered yes. Nobody is happy with their 1-1.5% of sales that are often focused on local marketing efforts. Yet we know that the biggest opportunity to increase top line sales is in your backyard. That is where more than 90% of yourcustomers come from (a 5-10 minute drive from your front door).
Over the past several years, we have helped thousands of locations nationwide tap into that market for less than $200 a month. The focus? Building new trial and concentrating on specifc life events that increase the propensity of the consumer to respond. Specifically, we focus on a 4 pronged neighborhood marketing approach. First, new neighbors. This lucrative group (when comnigled with a free offer) can consistantly produce double digit redemption rates and are hungry to try a new place. Next ,we already have birthday data on every market in the USA (no need to collect names and addresses of those that are already a customer). We send out a birthday card to new prospects right in your local trading area to stimulate new trial once again. Then comes Business to Business. We send out a monthly campaign to a select group of neighboring businesses with a BOGO offer to induce new trial and increase party size. It all gets rounded up with a quarterly or semi annual saturation mailer to round out the mix. The bottom line? Double digit top line sales increases, double digit redemption rates and a marketing budget that fits nearly every location in the USA.
Would love to hear your thoughts on small budgets for local store marketing efforts. If you are interested in learning more, I would love to discuss this topic in more detail for those that have questions.