Franchise Update Magazine Issue II, 2016 | Page 40

CONSUMER MARKETING

Millennials
The New Competition

e. →

Customer experience trumps customer service

yees

BY ADAM PIERNO

A

s a franchise organization you’ve
recognized by now that your
competition is more diverse and
complex than it has been in the past. Once
you were in a single business, selling a
product like sub sandwiches or sporting
goods to consumers. You were competing
against other businesses selling similar
sandwiches or sporting goods.
Consumers today have embraced the
multitude of options popping up all around
them. Many have learned to comparison shop Amazon or other
e-tailers while standing in the
aisle of the sporting goods store
to see if they can find it cheaper,
or maybe somehow better. And, in
addition to the thousands of new
digital storefronts available for
their mobile devices, new types
of physical competition are appearing as well.
To focus on just one example,
the traditional sub shop now has
an entirely new competitive set.
No longer are they competing
against Subway or a dozen other
similar brands in most metro areas, but also with fast-food burger brands
launching sandwiches; or with convenience
stores that have elevated their food offerings; or with pizza brands offering
sandwiches, along with desserts. And to
bring it back to the Internet, Amazon is
launching a grocery business to deliver
food to consumers in a single day.
Confused yet? Put yourself in the
shoes of your best customers. How are
you working to make their decision to
stay with you simpler? What are you offering that competitors aren’t or can’t?
In our study on how Millennials decide
where to dine, 67 percent said past experience with a brand or location is the top
factor in choosing their upcoming meal.
More people cited past experience than
cost or craving.
Customer experience is different than
customer service. When given the choice

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between the two in our survey, respondents rated their customer experience
about 20 percent more important than
customer service.
Competition likely won’t decrease as
brands across the spectrum look for new
revenue opportunities. So ignoring the
changing environment is not an option.
Now is the time to focus on improving
that all-important experience. Here are
three ways to do that.

1. Understand what you are actually selling. The days of the Yellow Pages
are gone. Brands no longer