Customers Rule! Can You Manage the Relationship?

(For Large & Mature Franchisors)

Moderator: Mark Royer, CTO, AviatechSpeakers: Jim Evers, President, 1-800-DryClean

Ken Caldwell, SVP, Franchise Operations, Heavenly HamSheryl Inglat, Owner, Comfort Keepers of Albuquerque

Customers Rule!

Jim EversPresident, 1-800-DryClean

A Service Brands International Company

Top 5 Mistakes

• Assuming Z’s will do what’s best• Letting Z’s do their own thing• Assuming Z’s are managing customer relationships• Failing to measure and manage Z’s customer relationship

execution• Not celebrating customer relationship heroes

Objectives

• Become a franchise system that fosters a successful customer relationship management culture

• Benevolent dictatorship

0 1 2 3 4 5 6

Acquisition cost

Profit from reduced operating costProfit from price premiumProfit from increased services

Profit from referrals

Base Profit

Why Annual Profits Increase Throughout Customer Life

Consumer Research

• What you do with research data is more important than gathering the data

• Think strategically• How to use data to celebrate success and teach

best practices

Creating Advocates

• Build feedback vehicles into your sales process• Segment customers by value• Aggressively seek out customer complaints• Know who you’ve lost…and win them back• Systems, not smiles

Lead Management System

Lead Management System

Customer Dialogue

• Ask permission• Build response systems into your sales and

marketing process• Sticky websites – the difference between writing

copy and writing content

Semi-Custom Website

Semi-Custom Website

Get Them Engaged

• Multiple response channels reduce barriers to communication

• Ways to make your website indispensable to customers

Customers Rule – Can you Manage the Relationship?

Mr. Ken CaldwellSenior V.P. of Franchising

HoneyBaked Ham CompanyHeavenly Ham Company

Who we are……The HoneyBaked Ham Company• 400 units (104 franchise/296 corporate)• 50th Anniversary• 8 years in Franchising• 89% Brand Awareness The Heavenly Ham Company• 100 stores – all franchise• Franchising since 1985

Top 5 Mistakes

1. One Way Dialogue2. Failing to recognize that Relationships have

Stages3. Not realizing that Customers are Not Created

Equal4. Treating all Customers the Same5. Not knowing who your Customers are

1. Encourage a two way dialog: We encourage a two-way dialog

w/ our franchisees and customer

2. All relationships have stages: Create Advocates

• Leverage stores• Website• 800 #• Products and Service

3. All customers are not created equal

• Use the 80/20 rule. 20% of your customers generate 80% of your profits.

• At HoneyBaked, we use the 60/40 rule. 40% of our customers generate 60% of our profits.

• Average customer visits 2.3 times a year for a ham purchase. Must speak to all segments– New (never shopped w/ us)– Core (2 plus times)– Best (more than 2 times a year)

4. Don’t treat all customers the same. We segment our customer info and communicate them in different way

Lapsed

Plus we have two different types of customers:

$7.00 average check $50 average check

5. Know who your customers are:

• Database Survey• External Research• Surveys in store• Modeling-Find

customers/prospects that “look like” customers

Using the Internet

-Franchise sales-E-commerce-Solicit feedback-Store locator-Info about company

Create Loyals and Advocates

Increasing Customer Satisfaction

and Sales

Sheryl InglatComfort Keepers

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

A bit of history…-1930! First Loyalty Marketing Program

-S & H Green Stamps, 1930 - American Airlines AAdvantage, 1981

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

• Loyalty programs no excuse for poor service!– Consumer still values good service

• In turn, becomes a loyal customer and advocate

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

• Know what you are really selling !– Dominos Pizza

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

• Start with your front line– Staff stability and loyalty

• Customers buy relationships and familiarity.

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

• Key rule: Serve your employees first, so that they can serve your customer– Respect them– Train them– Recognize them

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

• Create “loyalty warriors”– Empower your front line to “fix the problem”– Ownership = High job satisfaction

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

• Seek out customer complaints– What about the other 90%? – Use this knowledge to improve your service – Demonstrate how and thank them– Post mortem on lost customers

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

• Relationship Management program (RMP) – Striding Man Society – Cultivates a qualified group of loyalists and

advocates– Perks not available to outsiders!

Create Loyals and Advocates. Increasing Customer Satisfaction & Sales

• Help beyond the obvious– Talk to your customers frequently – Spend a day working with your top customers

(at their place!)– Find out their challenges – Stay in tune with “time of need”– Offer solutions (even if it’s not your area of

business)– Educate them