Marketing advice
Inside story
Megan Dunmoore on the need for internally-focused PR in tough times
It's something of a truism that the franchising industry thrives whenever the economy stalls and big job losses hit the headlines. Redundancy can often present a crossroads and become a catalyst for people to realise their dream.
This may be good news for franchisors, as recruitment enquiries rise, but what about the franchisees that will inevitably struggle to establish a new business in the depths of recession, however strong the franchise brand? And what of the impact of franchise failure rates on ongoing franchisor revenues, not to mention long term reputation?
Although the signs are that our economy has climbed out of recession, consumer confidence remains low in the light of continued government announcements of further spending cuts. Whilst some franchisors present their opportunities as ‘recession-proof' - and indeed certain products and services are less discretionary purchases than others - most businesses, franchised or otherwise, will be feeling the pinch.
So what can franchisors do to help? Clearly a commitment to market the brand and product range or service is vital - although franchisors are not immune to the temptation to cut the marketing budget when margins become tight - but an additional, and more often overlooked, solution is an effective internal communications campaign, aimed at reassuring and motivating franchisees.
Being self-employed can often be a lonely business and while being part of a franchise network should mitigate against this feeling of isolation, too often franchisees can feel miserable and abandoned if the phone stops ringing and closing sales becomes harder. No matter that the franchisor may be spending thousands on advertising and PR nationally if the franchisee gets to hear of it by stumbling across an ad or receives only the occasional email.
Properly planned and co-ordinated internally focused PR can provide welcome support to franchisees, keeping them in the loop, helping share best practice and good ideas that have worked in different regions, incentivising with competitions and providing templates for PR and promotions on their local patch. Of course, the best franchisees already know how to promote their business and are busy doing so, but others can benefit by example and all franchisees, whoever they are, appreciate a sense of ‘all being in it together'!
News releases, for example, should not be aimed only at customers or potential franchise recruits, but also at existing franchisees. After all, these are the people who will translate your brand values into actions out in the marketplace and burnish your reputation with customers. It makes sense to link external marketing activity with internal communications to boost morale, foster a sense of inclusiveness and create a committed, ‘can do' culture more resilient to the vagaries of the economy.
When it comes to the ‘how', we PR people are spoilt for choice. From top-down communication tools including electronic newsletters and e-bulletins to interactive platforms and feedback mechanisms such as intranets and franchisee forums, there is no shortage of opportunity for that essential two-way conversation between franchisor and franchisee.
In good times or bad, successful internal communication not only informs and encourages franchisees, but enhances the overall performance of the franchise organisation. As any good franchisor knows, well supported, highly motivated franchisees achieve better results - for their own business, and by extension, for that of their franchisor.
Megan Dunmore is joint managing director of DDPR. For more information, visit www.ddpr.biz.
