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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•

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Reward

Engage

Visit

Reward

Engage

Visit

http://www.google.ca/url?sa=i&rct=j&q=football+playbook+cover&source=images&cd=&cad=rja&docid=QoMHOJXVx4kW5M&tbnid=qI3y8eo8B2q2KM:&ved=0CAUQjRw&url=http://www.gq.com/blogs/the-q/2009/11/do-football-writers-really.html&ei=_NR-UbXhDpHtqAG8pYCADw&bvm=bv.45645796,d.aWM&psig=AFQjCNE2lInLjSCbqc3wgNpx-U3yPU88FA&ust=1367351256970474

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

svaughan@balihoo.com

@shanevaughan

Q&A Please Submit Your Questions!