Social Media in franchising

How can a franchise formula make optimal use of Social Media?

Franchisors guide market communication. Sometimes, a franchisor might prefer to have complete control over social media. However, a franchisee cannot be prohibited from using their own page. This is considered passive promotion, like a regular website, where the franchisor can only impose qualitative restrictions (e.g., use of logo and branding). In practice, franchise formulas benefit when franchisees use their own pages, especially if there is a thought process behind it. As a franchisor, you can certainly lend a helping hand. The effectiveness of social media improves when clear (formula) goals are established. Depending on the goal, the following applications can be considered:

Customer retention

Social media can be used to retain customers. In most cases, this will not render other tools obsolete, but will supplement personal contact and other communication tools. By using social media, the franchisee gains an additional tool to strengthen their relationship with customers.

News

You can also use social networks to communicate news. Be aware that these platforms have an even more fleeting nature than, for example, an email newsletter. Given the increasing volume of messages we receive daily on social media, it’s uncertain whether your message will stand out or even be read. To maximize the reach of your news, multiple communication tools must be used.

Sales promotion

We increasingly see examples of successful sales promotion activities communicated via social networks. A good example is a downloadable discount coupon on Facebook or Twitter. In addition, sales promotion actions via these channels can also increase the number of 'followers' or 'likers.' So, it’s beneficial in two ways.

Word-of-mouth advertising

Thanks to the interactive nature of social media, they can play an essential role in spreading user experiences. Of course, a dissatisfied customer experience may occur. However, it’s crucial to respond quickly and positively in such cases.

Market research

Social media are increasingly being used for analyzing consumer needs. By analyzing user experiences and other messages about your formula, much can be learned. An example is fashion chains that increasingly look to these platforms when renewing their collections.

Conclusion: Whether applied on a small or large scale, you can achieve a lot with relatively limited resources through social networks. It is important that there is a thought process behind it. Franchisors who set goals concerning social networks and make clear agreements with their franchisees have a clear advantage.