As a franchise owner, you will come up against many challenges in your career. One of the significant challenges that you may face is referred to as the “coattail effect.”
When a franchise experiences the coattail effect, this means that other franchises of the same brand are failing or doing poorly. Due to the performances of those other locations and the loss of reputation for the brand, you may see a drop in sales and the number of customers coming into your store. It could even go as far as you needing to close your business.
Luckily, there are ways for you to work to avoid these problems. Below are three methods you can use to overcome the coattail effect.
Set Yourself Apart
If franchise locations of the same brand as you are failing, then it doesn’t make sense for you to continue to do what they are doing. In order to get over the coattail effect, you should look for ways to make your location stand out.
If you can find products or services that other franchises don’t offer, highlighting them can help you attract customers. You should take advantage of anything that sets your store apart from other franchises of the same brand.
Focus on Local Marketing
A big part of working with a well-known franchise is that you have the chance to benefit from national and regional marketing. But if your brand is not doing well, then that type of marketing is not going to help you as much. Instead, you should put your focus on local marketing.
You can promote your store by getting involved in the community, conducting local advertising campaigns and finding ways to connect yourself with local organizations. Building a loyal local customer following can significantly help a franchise avoid the coattail effect.
Prioritize Customer Experience
It goes without saying, but customers are vital to the overall success of a franchise. You need them for sales, and you need them to help spread the word about your franchise’s products and services.
So, if you are trying to overcome the coattail effect, you should do all that you can to give your customers a one-of-a-kind customer experience.
This can be done by creating an atmosphere in your franchise that is welcoming and warm. Not only that, but you should prioritize personal interactions that leave a lasting memory. Customers will want to visit your location more!
If you are ready to start your career as a franchisee, get in touch today to get started with a free consultation.