Measuring Marketing Effectiveness: Setting objectives and managing

franchisee expectations

Darren GuntonMarketing Manager

Price Attack

About the Brand

• Leaders in professional haircare

retailing

• 25 year old franchise brand

• Salon in each store

Our customers

• Mother’s with younger children

• Aged between 35-55• Middle class with

traditional values

• Graining franchisee buy-in for marketing strategy and programs

• Measuring effectiveness at every level of consumer communication

• Learning, growing and adapting our programs

Measuring Marketing Effectiveness: Setting objectives and managing franchisee

expectations

Marketing Process

Customer ResearchLoyalty

Experience

Loyalty Zone

Satisfaction Zone

Detractor Zone

Loyalty Zone (Promoters)They are customers promoting you 

because they are completely satisfied 

with the experience they are receiving. 

They are willing to put their reputation 

on the line to recommend you. 

Satisfied (Indifferent) They are customers who received what 

was expected but not enough to make 

you stand out. 

They are at risk customersUnenthusiastic who can easily be wooed 

by your competitors.

At Risk

Detractors(Unhappy customers 

who are responsible for 90% of negative 

word of mouth.)

5‐10%

68%

22‐27%

“How likely is it that you would recommend Price

Attack to a friend or colleague?”

Local Actions

Planning Development

• Yearly marketing meeting• Key franchisees

(influencers)• Plan forwarded to 30% of

franchisees• Evolved plan presented at

State Meetings and online

Tactical Development

• Test Campaigns and programs locally prior to up scaling to a national level

• Marketing Calendars presented at State Meetings

• Offers and 1st

Proof forwarded to 30% of franchisees

• Final artwork sent to 10% of franchisees

Execution

• Merchandising manual and team action plans

• Customer research during the campaign

• Store audit of merchandising• Competitions for best dressed

store

Evaluation

1.

Cost compared to Income Generated

2.

SKU sales and GP effect compared

3.

Customer research feedback4.

Feedback from Franchisees

Case Study –

Local SMS campaign

1.

Cost compared to Income Generated• The SMS cost $130 to send. The sales were up $9320

for the week. Net $9,190.

2.

SKU sales and GP effect compared• 59 SKUs of the service were sold. Representing

$11,800. Net $11,670. • Service delivery cost $1,475. Net $10,195.

3.

Customer research feedback• No customer research was held at the time. However,

we received a email from a happy customer.

4.

Feedback from Franchisees• Franchisee happy but not sure of the results.

A salon offer was sent to single stores loyalty club members with the aim of lifting sales of a particular service.

• Involve franchisees in every step of the process

• Listen and learn from franchisees• Run different campaigns/offers in different

states• Test campaigns and strategy in single stores

and/or markets before running them nationally

• Measure results in different ways• Guide franchisees in the delivery, never

assume• Incentivise

and reward franchisees who

perform beyond the norm

Measuring Marketing Effectiveness: Setting objectives and managing franchisee

expectations