CONSUMER MARKETING
BY TOM FELTENSTEIN
NEIGHBORHOOD
MARKETING
FOUR WALLS , FOUR BLOCKS , FOUR MILES
With so much attention on social media and digital marketing , it ’ s easy to neglect one of the oldest , most effective ways to reach your customers and attract new ones : four walls branding and neighborhood marketing .
It ’ s a revolutionary concept as old as the general store of a century ago , when merchants knew their customers ’ names , addresses , birthdays , even their family successes and tragedies ; a time when they cared about their communities because they were a vital part of those communities .
The mission of neighborhood marketing is to develop single-unit marketing campaigns whose principal focus is rooted in the four walls and surrounding trading areas . It is a strategic process based on the conviction that the first step in any marketing initiative is to leverage the foundational sales drivers within your four walls .
You already have everything you need to grow your sales and make your business a leader in your category and your community . Each individual operating unit is a medium that contains four business-building tools : 1 ) the internal customer 2 ) products and services 3 ) internal merchandising 4 ) database management .
Tom Feltenstein
Inside the four walls Whether your goal is to attract new customers , increase ticket size , generate customer loyalty , or simply to reverse sales declines , it all begins within your four walls . There are all the usual tactics : clean uniforms , clean premises , clear and attractive signage , instore specials , rewards programs , etc . These are the price of entry . But without dedicated employees who “ get it ,” you won ’ t stand out from the local competition .
• Train . Effective four walls marketing means setting high workplace standards
your internal customers ( employees and staff ) must adhere to . A workplace with high standards attracts workers with high standards . Even better , an environment with high standards repels people with low standards . Mediocre people support each other by buying each other ’ s excuses and letting one another off the hook .
• Reward . Marketing your goals to your internal customers involves not only training , but making it worthwhile for them through contests , incentives , rewards and recognition , bonuses , benefits , etc ., at both the individual and store level .
• Budget . It also involves budgeting . Most business owners don ’ t “ budget for brilliance ” because they don ’ t know how to . If you need any incentive to learn , think about this : a 2 percent increase in top-line sales equals a 10 percent reduction in expenses . Motivated now ?
Outside the four walls This means knowing the neighborhood by getting out of your store , generating publicity , and making a name for yourself in the community . It means reaching out and targeting local community members who live and work in and around your trading areas , connecting with them through personal , face-to-face , and hand-to-hand interactions . For mobile and home-based businesses , it means having distinctive vehicles that attract attention and keep your name , phone number , and website a visible presence .
Four miles and beyond For neighborhood marketing programs , the “ neighborhood ” is a 4-mile radius from your location , businesses and homes within a 15-minute walk or a 30-minute drive . Reaching those neighbors means :
• intercepting them in their daily routines ( lifestyle intersection );
• creating rapport and making personal connections with local businesses ;
• holding “ big buzz ” events that garner attention ( PR ); and
• maintaining a focused , strategic participation in community events such as local festivals , fairs , schools , sports teams , and local organizations like nonprofits , hospitals , and charities .
Direct mail Don ’ t overlook this tried-and-true , costeffective marketing tactic . Use well-timed customer direct mailers to increase new trial , boost frequency , and to forge a relationship with consumers at home and in the workplace . I personally continue to experience 20 to 25 percent redemption rates . Your franchisor should be glad to provide guidance , assistance , and materials to customize for your local market .
It ’ s all connected Four walls and neighborhood marketing programs consist of a series of interconnected ideas designed to build unit sales in each neighborhood market where you operate . Done right , and in conjunction with social media , digital marketing , and customer rewards programs , it will move your franchisees from “ catch and release ” to “ catch and keep ” marketing , generating repeat business from loyal customers spending more per visit .
It all boils down to one essential truth : to build your base volume . The key is to integrate all the components and to have your managers and front-line staff perform them consistently in every customer interaction .
The time to start mining the gold that ’ s already in your business is now . ■
Tom Feltenstein is CEO and founder of Tom Feltenstein ’ s Power Marketing Academy , a consulting firm that serves and educates businesses in franchising , retail , hospitality , and service through clinics , seminars , strategy sessions , and trainings . Learn more at www . tomfeltenstein . com or call 561-650-1315 .
26 Franchiseupdate ISSUE II , 2016