How Franchisees Can Use Technology to Change Consumer Behavior
Here's how franchisees can tap into consumer behaviors using strategic messaging and offers that speak to clients wants and needs.
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Consumer spending makes up more than two-thirds of the U.S. economy. With inflation and economic uncertainty, customer buying habits are changing. Although spending has remained strong through inflation, 90% of respondents to a survey conducted by Wildfire say they were more interested in discounts, coupons and incentives.
Business owners need to adapt now to these changing consumer behaviors. The good news is, emerging technology makes impacting consumer behavior easier than ever. One solution increasing in popularity, particularly within the hospitality, tourism, restaurant, retail and franchise space, is integrated WiFi marketing.
For franchise and multi-location business owners, there are several specific ways integrated WiFi marketing can and improve business functions. Some of which include:
Drive regular customer promotions to increase time in store locations
Encourage once-a-month customers to visit more frequently
Bring back "lost" customers
Motivate customers to share their visit on social media, increasing awareness
Related: As Inflation Soars, Consumers Want More Rewards and Shopping Incentives. Here's How to Give Them What They Want
What is integrated WiFi marketing?
Uniquely, integrated WiFi marketing utilizes on-location WiFi to operate highly targeted campaigns via an integrated group of digital spaces — some of which include social media, SMS messaging and other digital displays. By using free onsite WiFi, they provide contact information or log onto their social media upon first connection. That data is then mined and evaluated by artificial intelligence (AI) to send messaging and offers that are most tailored to each customer's preferences and behaviors.
From there, communication with customers can best facilitate a continuation or change in their purchasing habits with your multi-location business or franchise. For businesses and customers, it's a mutually beneficial relationship. Customers are given free WiFi and a personalized experience based on their data, and businesses are given more tools and information to best give customers the experiences they're looking for. It's also a large reason why, according to Cisco, businesses utilizing integrated WiFi marketing are expected to grow from 169 million to 628 million by 2023.
Owning customer data leads to better customer experiences
Multi-location businesses and franchises can't offer much more than a ubiquitous experience for customers without having access to their data and an effective means of implementing data-driven decisions. Customers today understand the inherent value of their information and aren't afraid to share their data under the right circumstances. According to a report from PWC, 82% of consumers would share some of their personal data to receive a more tailored and unique customer experience. Just by obtaining a customer's basic demographics, visit information and other defining elements, AI from integrated WiFi marketing can effectively segment and target customers. Additionally, research presented in McKinsey emphasized, as a standard, 80% of customers want and expect a more personalized experience.
Learning these behaviors provides an extremely customized and personal plan that ensures offers will be relevant and desirable for each customer. For instance, a business has no reason to send a daily customer with an early morning schedule the same message or promotional offer it would send a twice-weekly customer who is retired and starts their day in the late morning. Understanding behaviors and purchasing habits of each person allows customers to receive marketing that is unique to them. Owned data is the most important outcome of WiFi marketing for this reason.
Related: Are You Giving Your Customers Personalized Experiences? Here's Why You Can't Afford to Ignore It Any Longer.
Build a lasting relationship with your customers
Over time, the relationships built with customers pay off and bring in exceptional returns. According to the Bond Loyalty Report, customers involved in loyalty programs will spend 66% more than non-loyalty members and will adjust the amount they will spend at a business to maximize their benefits from said loyalty program. Through data collected in integrated WiFi marketing, AI can recognize significant purchases and buying habits over time and provide greater discounts and offers to these customers. For example, if a loyalty program member purchases multiple computers for their business from a tech franchise, that customer can be offered a discount around the same period of the year they usually make their annual purchase. On a smaller scale, someone who gets coffee every morning from a franchise or multi-location business may receive a voucher for a free cup of coffee along with an SMS message saying something along the lines of: "Thank you for choosing to start your day with our business, here's a free coffee on us!"
Over time, these actions can provide huge results for your business, as up to 80% of future profits come from just 20% of existing customers. So, building trust and loyalty is essential for any business to grow and thrive. Social media is also vital in the marketing and sales, especially when considering 77% of consumers are more likely to buy from a brand they follow on social media relative to ones they don't follow.
Related: 5 Proven Customer Loyalty Programs That Pay Actually Off
Integrated WiFi marketing is a catalyst for organic social media followers and engagement when customers access their social accounts through a business's WiFi. SMS messages sent to customers on store WiFi can encourage customers to follow the business on various social platforms. With integrated WiFi Marketing, SMS messaging simplifies the process and can cut the process down to a single click of a link.
Revenue for businesses in economically uncertain times can be a source of panic for franchise and multi-location business owners. With integrated WiFi marketing and its solutions, business owners can rise above the chaos and tap into consumer behaviors using strategic messaging and offers that speak to clients' wants and needs.