Building Customer Loyalty in Franchise Systems Through Automated SMS Marketing

When you think about building customer loyalty in the franchise system, what is your first thought? It may be aspects such as personalized service, consistent, top-notch quality, and loyalty programs. Of course, these are important. However, the current scenario is completely changed as customers’ demands have increased.

“Markets always change faster than marketing.” This famous quote from Philip Kotler shows that the marketing world is constantly evolving, and customers prefer instant and personalized experiences. Automated SMS marketing is one such tool that can be a game changer.

As the CEO of Textdrip, I have personally seen how franchises can take advantage of the power of automated SMS campaigns to strengthen their customer relationships and drive repeat business. Let me explain to you why SMS marketing works perfectly for franchise systems.

How does SMS marketing work for franchises?

The way franchises operate is quite different from many traditional businesses. Its main requirement is a unified strategy to easily scale across locations while still offering a personalized touch. Here is where SMS marketing truly shines. While emails can get lost in crowded inboxes, SMS offers an almost 98 percent open rate, and customers read it within minutes. When franchises implement automated SMS marketing appropriately, they can easily connect with customers on a personal level, regardless of location.

Through SMS marketing, franchises can find the balance between maintaining a constant brand presence and offering tailored location-specific promotions. It will let franchises remain aligned with the broader brand goals by meeting local customers' demands. As a result, franchises can boost retention through their loyalty campaigns.

As an example, a quick-service restaurant franchise with more than 100 locations can increase customer retention by implementing an automated SMS marketing “Loyalty Lunch” campaign. Whenever a customer purchases lunch from them, a customer receives a personalized thank-you message along with the survey link. If they complete the survey, they can earn an additional 10 percent discount on their next visit.

If that increases customer retention by 15–25 percent, the franchise can experience almost a 10-15 percent increase in repeat business. When franchises use a personalized approach to connect with customers, it makes customers feel valued, and instant SMS gratification encourages them to return.

The best SMS marketing practices to build customer loyalty

A personalized experience is what matters in SMS marketing. However, it is not easy to achieve in a franchise system because you are often managing multiple locations and customer segments. However, there are some actionable tips you can use, as these practices work wonders for many of our clients.

Segment your audience based on location, purchase history, behavior, etc., and send targeted messages that resonate with the specific groups. You can also automate the tailored follow-ups to keep your customers engaged. By doing this, you can use automated SMS marketing platforms and personalize each message with customer’s location, name, and other details to make it feel like a one-on-one conversation.

For any franchise system to thrive, customer loyalty is a must, and an instant reward is one of the effective ways to build it. You can automate an SMS campaign that will give instant rewards to customers like discounts, freebies, etc., for specific actions such as purchase, referral, or review. Such loyalty rewards can convert your one-time buyer into a loyal customer.

One thing franchises should remember is that they must maintain a consistent brand experience across all locations. It will help them build trust, and customers will become familiar with their brand. It can be done by running an automated SMS marketing campaign to ensure each customer receives the same high-quality message regardless of where they interact with the brand. It does not mean that franchises should send the same message everywhere. They should use automation and personalize and localize messages at scale. SMS marketing is a powerful tool, but franchisors must stay compliant and respectful of rules and regulations such as TCPA and 10DLC.

Automated SMS marketing is perfect if you are a franchise brand or owner looking to strengthen customer loyalty. You can run the trial campaign in a few locations, track the results, and adjust your strategy before executing the campaign across all locations. Remember that consistency, personalization, and compliance are each a must for building customer loyalty in franchise systems through automated SMS marketing. So, if you are ready to build customer loyalty, start small and scale smart.

Philip Portman is the founder and CEO of Textdrip, a business texting platform catering to industries such as solar, travel and tourism, e-commerce, insurance, hotels and hospitality, car dealerships, real estate, and healthcare.