Franchise Prospecting and How To Maximize Your ROI

September 2007 Franchising World

There is a resurgence of trade shows and other events underway.
By Jim Squire, CFE

Twenty years ago, when franchise lead generation was much simpler, trade shows were the lifeline of franchise development teams. As the primary, and often only, source of prospects, franchise companies flocked to franchise trade shows and expos across the country in droves—daring not skip a single one, or they might miss out on their only opportunity to meet prospects and make that critical franchise sale.

When the Internet entered the picture and became mainstream in the 1990s, trade shows and expos experienced a steady decline. Leads from the Internet poured in from all directions, and franchise systems opted to invest resources in both building their own Web sites and optimizing their Web site’s performance, as well as paying for stand-alone presence on franchising portals, rather than traditional expos and trade shows. They felt their development teams’ time and funds were better spent on the telephone following up with all the Internet leads. Likewise, prospects spent most of their time surfing the Internet for franchise concepts, rather than spending time and money to travel to expos around the country.

Over the past several years, trade shows and expos have experienced a gradual comeback. Numbers show that attendance continues to climb, on both sides of the fence. Prospects are realizing the value of attending expos to “shop” around for potential franchises and actually talk in person to the human beings behind the Web sites, and therefore more franchise systems, particularly the emerging franchises, are re-allocating funds to exhibit.

Why the resurgence? It seems that everyone simultaneously came to the realization that, while the Internet is an efficient method for initial shopping, there’s tremendous value in good, old-fashioned, face-to-face interaction. Franchising is, after all, about establishing and building relationships. By attending an expo, prospects could “put a face” on their Internet investigations, while franchise organization could use trade shows to help “seal the deal” for prospects who came to them from the Internet. In other words, the Internet provided the initial exposure and introduction to the concept, but the expos became the logical next step in the process.

In addition to prospecting and sealing deals, franchise companies also realized that trade shows and expos can be powerful tools to create brand awareness and network with other franchise systems in the industry. Often, business and personal relationships are created with peers at these shows. As franchise exhibitors come to terms with the idea that they’re basically all in the same boat, they frequently leave the shows with two sets of business cards: one with prospect leads, the other with peers in the industry that later develop into valuable professional and personal relationships.

Getting the full benefit from your budget
Franchise system budgets are tight, and development teams know they need to prove the value and return on investment for every trade show and expo they attend. If they don’t, they know that the following year, the show simply won’t go on. The fact of the matter is that the tremendous value of trade shows and expos can be proven time and again—if the right steps are taken and a plan is carefully followed.

First, it’s critical to carefully choose the most beneficial shows to attend, as investing in the wrong venues can be a non-productive use of time, not to mention precious marketing dollars. How do franchisors pick and choose which shows to visit and which shows to exhibit?

Major factors to consider include credibility of the hosting organization, the target audience and the greatest opportunities for meeting quality leads and networking with other franchise systems. Like anything else, due diligence is important. Ask peers for recommendations on which shows have been most successful for them in terms of education, networking and lead generation. Also, look for shows hosted by a reputable organization, for example, the International Franchise Association or National Restaurant Association.

Outside of expos and regional trade shows, franchise companies can consider attending a variety of specialty events, such as the Multi-Unit Franchise Conference, the Elliot Leadership Conference and the Multi-Unit Foodservice Operators Conference. Other conventions to consider include those that make the most sense for an ideal franchise prospect’s demographic or psychographic profile, such as the AARP if your system seeks to reach the baby boom generation, or the National Urban League, if the company is seeking to recruit more minorities into its system. While such events aren’t necessarily business specific or franchise-sales related, they create good opportunities for prospects and networking.

Consider location. Shows such as the West Coast Franchise Expo are ideal for franchise organizations seeking prospects to expand in California, Arizona or other states in the region. HoneyBaked Ham recently supplemented its Texas expansion efforts by exhibiting at a Dallas franchise show. Before attending, it sought leads in the area and targeted them with direct mail, advertising and public relations. The increased impressions create more qualified leads once prospects see the booth.

Once the most appropriate shows to attend are selected, franchise companies should consider several additional factors to ensure the potential return on investment, including setting goals and objectives beforehand, as well as emphasizing post-show follow up efforts.

Set goals. Franchise systems should consider what it is they want to accomplish at the show and to set realistic goals. For example, perhaps the goal is simply to test out the environment to see if it’s worth investing again the following year, to check out the competition, or to meet a certain number of realistic potential prospects to start the conversation process. Another goal could be to simply put the name out there to increase brand awareness or get the word out about a new image or prototype store. Goals can also be as simple as positioning oneself as an ambassador of the brand, developing dialogue among industry peers and potential candidates, and attending seminars where the experience gained will help attendees become a better, well-rounded franchisor.

Keep it positive. While at the show, it is important to remember that every conversation at a trade show should be positive. Whether exhibiting or not, conversations with prospects or peers should be about how excited they are to be affiliated with the brand they’re representing and how encouraging it is to see the growth of the industry. Complaints about the cost of booth space, location or even how much their feet hurt should be kept in check.

Best impressions. The goals of exhibiting at a booth are generally to attract new franchisees, build brand visibility and to get a buzz going about the company. Exhibitors especially have to feel comfortable in talking with those they have never met. Find out why they stopped at the booth, and resist the temptation to hand out as many marketing cards as possible. Literature often acts as a barrier to conversation, and chances are, it will be discarded at the first opportunity.

Control the crowds. Experienced exhibitors caution against booth overcrowding. Be careful not to outnumber visitors, or monopolize other company staff, or do anything else which would restrict visitor interaction. When not working the booth, exhibitors should make some effort to walk the show and network with representatives from similar concepts. Frequent trips to your hotel room or going off-site to relax will deter the maximum return on investment.

Contact system. Always try to make as many contacts as possible at a show and adopt a system of remembering and identifying people or their interests on their business cards or, if possible, in a BlackBerry or laptop when they walk away. It can be helpful to take a break away from the crowd and jot down notes while they are still fresh in your mind, such as a unique fact or anecdote that will later help put a name to a face. Adopt a code—use an “A” for hot, promising contacts, a “B” for medium potential, and so on.

Follow-up. When it comes to trade shows and conventions and turning leads into deals, it’s all in the follow up. Despite the fresh pile of work from being out of the office, it is imperative to promptly follow up with contacts from the show. Let them know how great it was to meet them, and send any follow-up information that was promised. It shows diligence and makes the prospect feel like their matter is a significant engagement for the company.

Maximizing Learning and Networking Potential
Conventions and trade shows are not just about cutting deals, but learning about the franchising industry and networking. One of the key objectives at a trade show is to make connections. These shows are designed to bring franchise companies in various roles in the franchising industry together in a comfortable setting where they can share of ideas, resources and experiences.

It’s easy for franchise professionals to get so caught up in the day-to-day activities of their home office that they miss critical opportunities to connect in the industry. But it’s often been said that the common threads of every great organization include a culture that promotes idea sharing and programs that cultivate mentorship relationships. Research directly correlates these elements to profitability.

Trade shows create a network where professionals in franchising can build relationships, mentor each other, address challenges, share strategies and ideas and present best practice examples to help one another be successful. Even social networking events planned during trade shows help foster relationships in franchising. With each event comes new contacts, new lessons learned, and sometimes, new friendships. Trade shows and conventions are ideal settings to cultivate relationships.

Trade shows are like anything else: it’s what one makes of them. Franchise companies get back what they put into them. Careful planning, goal setting and choice of the right shows are important first steps. Once there, following the previous advice of positive first impressions and careful attention to follow up are key factors that contribute to maximizing return on the investment.

Jim Squire, CFE, is the director of franchise development for the HoneyBaked Ham Co. and Café. He can be reached at jsquire@hbham.com.

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Posted by manung36, Monday, December 31, 2007 11:01 PM

2 Comments:
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