Monetizing the Customer Experience

One of the highlights of the Franchise Customer Experience Conference (FCXC) in June featured a panel discussion titled “Monetizing the Customer Experience Across Disciplines.” Moran Family of Brands Co-Founder/CEO Barbara Moran-Goodrich moderated the forum, which included Scott Snyder, CEO of Bad Ass Coffee of Hawaii, Ryan Farris, president and CEO of AlphaGraphics, and Kristen Pechacek, president and CEO of MassageLuXe.

Each brand executive shared their thoughts on how creating and developing a positive experience for their customer can translate to increased sales. It is a strategy that pays off in real time and can attract repeat and new customers.

Farris said he believes the key to monetizing the customer experience comes from having a clearly defined mission and set of values that is instrumental in each step of the fran dev process and customer interaction and having a way to validate it.

“You want to have your brand attract the right owners,” said Farris. “That means it has to convey your mission, values, and the attributes of your brand so you get to the right people so they can deliver your customer experience the way you want.”

Establishing a foundation for the brand and creating a great experience for the customer leads to loyalty and advocacy for the franchise's product or service. The executives said creating the connection with the customer is a comprehensive process that combines data analytics as well as personal interaction.

“A big part of the experience is that human touch,” said Snyder. “Measuring customer experience for us really is the sum of all parts. It is how that store feels and how good was your last interaction with a customer. It is the music, the colors, the menus, and the merchandise. Measuring that can be both very simple and very challenging from a technology standpoint. It is simple that we can track sales, repeat business, and referrals. But then we have to correlate that data with people who are not yet coming into the stores as we try to convert those who have a love for the brand into buying the product to then ask when a store will be built near them.”

The panelists said increased use of technology and AI help with the process of creating a consistent consumer experience throughout the system. It starts by establishing brand standards and having the field team test the customer experience or ordering process. Using the new tools and technology can provide franchisees benchmark scores in certain areas and show how they compare against others. It can provide a live dashboard for people to see and evaluate their performances and decide where they may need to improve.

Pechacek said that even though the responsibility of delivering an outstanding experience for the customer often falls on the franchisee, franchisors should lead and create a positive culture with their communication and actions.

“When we want our franchisees to treat our customers a certain way, I would challenge you as a franchisor to ask how you are treating your franchisees,” said Pechacek. “Are you going the extra mile for your franchisees? You can't force culture but you can do things to influence it. Anything you have planned for your next board meeting does not outweigh having your franchisees know you care for them.”

You can watch the full video of the panel discussion from the FCXC HERE.