Turning Local Trends into Transactions
Wednesday, May 1, 2013
Welcome…Here’s the Game Plan
• Share top level “Ah-Hah” moments from the CMO Council study
• Hear from amazing brands innovating and pushing the local needle
• Talk with a Local Marketing expert to learn some ways to get the ball rolling
• ANSWER YOUR QUESTIONS!
• Set Out to Benchmark: • How to effectively activate local customers
without loosing national brand strategy…
• Identify the required channels, measures and resources to optimize local activation…
• Find out who is is getting it right…
• And how is tech enabling it…
What Did We Learn?
• Local marketing is a key strategy to drive demand and boost revenues: – 59% say it is essential to growth & profitability
• Many struggle to develop strategies & measure effectiveness: – Only 7% have highly evolved campaigns and
measurements in place to activate local customers
What Are The Key Challenges?
• Resources
– Most brands rely on a highly manual & resource intensive process
• Budget
– 50% of respondents say they lack budgets to execute
• Analytics
– Nearly 1 in 3 brands lack in-market intelligence needed to develop relevant experiences at national level
Our Speakers
• Russ Romeo, Regional Marketing
Director, Dunkin Brands
• Brant Schmitz, Online Marketing
Manager, Snap Fitness
• Jeff Larson, VP of Global
Marketing, Subway
• Shane Vaughan, CMO, Balihoo
Local Store Marketing:
A Bridge-to-Broadcast
Russ Romeo
Regional Marketing Director
Dunkin Brands
QSR Perspective
Local Store Marketing – “Bridge to Broadcast”
FACT: For large retail mass-marketers, traditional broadcast media is the easiest and most effective medium
▫ The larger & more established the market, the more efficient broadcast becomes ▫ Note: Broadcast while still king… It’s becoming fragmented and fractionalized.
FACT: Broadcast media (TV) is less viable/efficient for small brands or low penetrated markets.
▫ Funding DMA-wide coverage ▫ High cost of entry (TV production & media)
For new/emerging or low penetrated markets LSM can be a bridge ▫ Depending on the concept, penetration levels & ad funding… it may be years until a
brand can afford “sufficient levels” of broadcast media. ▫ During start-up, “gorilla-marketing” will be required to gain beachhead ▫ LSM becomes a key local strategy for these markets
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LSM IS:
• An efficient way to reach a site’s trade-area consumer base
▫ Drive awareness & traffic to the site
▫ Message unique offerings
▫ A link to building loyal customers
▫ React and respond to local competition in real time
▫ Capitalize on local trends/opportunities
▫ Less costly than broadcast TV media/production
▫ Does not require market penetration to be effective
▫ Can be deployed with minimal start-up costs and materials
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Local Store Marketing – What It IS
LSM: It’s not a silver bullet…
• Compared to broadcast, LSM is not easy or neat
• LSM activities tend to be: ▫ Human resource intense:
Higher soft costs, lower hard costs ▫ Challenging to execute and measure ▫ Not scalable for larger concepts or well penetrated mkts ▫ A slower build, than traditional broadcast media
Investment = Reward (requires persistence & focus) • LSM cannot overcome systemic issues within a
marketplace ▫ Poor sites, poor operations, poor price/value, poor brand
relevance… will render any LSM effort ineffective
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Local Store Marketing – What It’s NOT
All things considered... if sufficient media is unattainable,
than LSM must be a part of the marketing mix
Larger brands are often “empowering” local sites to execute LSM activity
▫ Concepts may offer a “token” LSM resource Localized marketing can be a resource intense activity
▫ Efficiency & scalability are a barriers to corporate LSM resourcing ▫ Concepts may offer some basic strategic resourcing… this is helpful
Advertising agencies (agency of record) are typically not involved in LSM execution • Agencies charge additional fees for LSM planning/execution
▫ Most F/ees & O/O are not willing to pay for agency support
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LSM Execution: Who Owns It?
More (F/ees & O/Os) are now expected to execute LSM:
• GMs, store MGRs/Asst.MGRs are more accountable
for LSM activation
▫ Need the “right” person for the LSM role
▫ Employ meaningful crew incentives to push-thru execution
Concepts should develop a single LSM tool kit: Simple,
inexpensive, turn-key and user-friendly
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LSM Tools & Materials:
Enable fast/easy execution (web-based system preferred)
Tools need to be updated and relevant
Pre-approved camera ready art
Turn-key and proven tactics
Publishing business cases (dash board)
• Simplified & proven tactical recommendations (racked & stacked): ▫ Drive traffic, drive ticket, daypart, events, product news, etc. ▫ Simplified template for each tactic… Grab n’ go approach
• The most often used tactic is still direct mail (solo or shared): ▫ Proven results, low cost and measurable ▫ Typical redemption is 3-5% (dependent on offers and scale)
• The use of geo-targeted digital media is booming!
▫ Mobile apps, opt-in texts, Facebook/Google messaging, eClubs, web coupons, store locators, etc ▫ Smart phone apps are an exploding vehicle
• Use of electronic signage (reader boards) & window paints are
effective ▫ Old school, but still works ▫ Use the facility as marketing vehicle
Standards and guardrails should be employed
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LSM Tactics: Overview
Corporate Marketing in a
Hyperlocal Market
About Snap Fitness
Leading Franchisor of 24/7 Fitness Centers
Over 1400 locations worldwide
#1 “Best in Category” for Fitness Franchise- Inc. Magazine
#16 INC 500
Brant Schmitz
13 Years in Marketing
8 years in Digital Marketing & Social Media
Focus on SMB marketing tactics and execution
Brick and Mortar >>>>>>> Online
Challenge
In the fitness space, times are a changin’
Objectives
Make it easy for Franchisees to reach prospects and members
Continue with existing vendors plus ability to easily bring in new vendors
Single marketing platform that eliminates need to contact mulitple vendors
Flexibility and support for over 1400 locations
Improve franchisee adoption of new marketing channels
Solution- Marketing Platform
Balihoo
One destination for our Franchisees
Vendor Agnostic
Traditional and Digital Marketing
Solution – Paid Search
Simple Opt-in for Franchisees
Brand continuity
Takes guessing game out of campaign management
Tracks leads and conversions
2:1 ROI
Solution – Direct Mail
Direct Mail still big Jan – March
New Movers automated mailing
13:1 ROI
Solution – Member Engagement
We have the members, but how do we keep the members?
Member Engager
Automated, triggered emails
Email Templates
Member Surveys
Member Dashboard
ROI off the charts!
Results
Execution for traditional and digital campaigns at a hyperlocal level
Increase in Franchisee adoption
Reduction in Campaign Costs
Increase in Campaign ROI
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Reward
Engage
Visit
Reward
Engage
Visit
Confidential
Local Marketing
Automation
May 1, 2013
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Confidential
What is Local Marketing Automation?
SaaS platform enabling national brands to bring enterprise-class marketing strategy, CRM/customer data and demand gen tools to their distributed network
• Includes multiple mediums (TV, print, email, radio, social, mobile, POP, coupons, direct mail, SEO, PPC, websites, etc)
• Financial management (ex: co-op management)
• Analytics and reporting
• Automated campaign execution (subscriptions)
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Confidential
Benefits of Local Marketing Automation
• Ensures brand control and
compliance
• Reaches prospects closer to the
point of purchase
• Increases channel engagement
and success
• Aggregates metrics and reporting
• Increases revenue, decreases
complexity
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Confidential 33
Roadblocks
Confidential
Roadblock #1 – Scaling National Strategy
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Keys to overcoming:
• Understand the objectives
• Use “local” to your
advantage
• Modify the creative and the
CTA
Confidential
Roadblock #2 – Data
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Keys to overcoming:
• Centralize data storage
• Distinguish between
“commercial” and
“marketing” data
• Collect once, publish
everywhere
• Customers are “shared”
Confidential
Roadblock #3 – Poor Execution
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Keys to overcoming:
• Control the execution
• Think “in conjunction with or
on behalf of”
• Make it easy for the local
marketer
Confidential
Roadblock #4 – Lack of Measurement
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Keys to overcoming:
• Centralize and automate
results reporting
• Simplify the metrics
• Scale trumps sophistication
Confidential
Questions?
Now What?
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Learn Much More: http://balihoo.com/local-marketing-resources
1. INFOGRAPHIC: Driving National Campaigns to the Local Level with
Automation
2. WHITE PAPER: The Local Web–The Linchpin to Successful Local Marketing
3. REPORT: Brand Automation for Local Activation – Connecting Customer
Engagement into Measurable Local Strategies
Shane Vaughan, Balihoo
@shanevaughan
Q&A Please Submit Your Questions!