Franchise Marketing Statistics You Should Know in 2021

Running a franchise business puts you in a unique position when it comes to promoting your business online. In franchise marketing, for example, the franchisee must align their strategies with corporate marketing guidelines to ensure centralized messaging across the business. However, the franchisor must also recognize that most of these strategies don’t apply at the local level, which is precisely where franchise digital marketing excels.

In franchise digital marketing, an experienced franchise marketing agency or marketer devises and applies franchise marketing tactics that deliver growth to a franchise while remaining consistent with corporate marketing guidelines. 
Finding the right franchise marketing strategy is one of the biggest challenges franchisees face. That’s why most franchise owners rely on the expertise of an experienced franchise marketing agency to help them build the right strategy.

In this blog, we’ll share with you franchise marketing statistics that you can use to inform your franchise marketing strategy. Peruse our franchise marketing statistics 2021 list to glean helpful information that can improve your marketing methods.

State of the Franchise Industry2020 was a challenging year for franchise businesses all over the world. Both franchisees and franchisors, in particular, are still reeling from the effects of the coronavirus pandemic. Let’s take a look at a few statistics that provide greater insight into the current state of the franchise industry.

• The U.S. economy shrank by 3.5 percent in 2020 (The Guardian, 2021).

According to the Bureau of Labor, 20 percent of businesses fail in the first year, and this increases to about 50 percent by the fifth year. But in 2020, a staggering 60 percent of companies failed due to the effects of the pandemic. 

• The number of franchise establishments declined by 2.6 percent in 2020 (FRANdata, 2021).

In the past year, the franchise industry lost about 20,000 business locations, leading to a loss of over 900,000 jobs. This statistic paints a grim picture of what franchise businesses endured at the height of the pandemic.

• Despite significant losses, franchised businesses still contributed $670 billion to the U.S. economy in 2020 (National Franchise Association, 2021).

Despite losing so much during the pandemic, franchised businesses were still able to support over 7.5 million jobs nationwide, which contributed to more than 3 percent of the U.S. Gross Domestic Product (GDP), which is proof of the franchising industry’s resilience.

• Experts predict a net gain of 26,000 franchised small businesses in 2021 (FRANData, 2021).

With the economy starting to recover thanks to a steady vaccine rollout, experts see 2021 as a year of more franchise growth. This growth more than offsets the declines felt in 2020, corresponding to a GDP contribution of over 7 percent. 

Franchise SEO StatisticsBecause franchises carry brands that are already widely known and accepted, consumers are generally more comfortable working with these businesses. But unless consumers are aware of a location near them, they still won’t be able to visit your store or acquire your service. That’s why franchise businesses need SEO to improve their local visibility. Take a look at the franchise SEO section of our franchise marketing statistics 2021 guide to help you implement a local SEO strategy. 

• Nearly three-quarters of internet users will primarily use their mobile devices to access the internet by 2025 (Forbes, 2021).

In the mobile-first era, optimizing your website for mobile access future-proofs your business. Supplement your enterprise marketing campaigns with a local SEO strategy that prioritizes mobile users. 

• Forty-six percent of all searches on Google are looking for local information (Go Gulf, 2019).

Through local SEO, you can capitalize on local franchise marketing stats 2021 and capture the intent of consumers who are looking for businesses like yours near them. This is one of the best ways to inform your audience about a franchise location that they can easily access.

• Forty-nine percent of Google searches are zero-click (Jumpshot, 2019).

Zero-click searches occur when a user is able to obtain the information they need from search engine results pages (SERPs) without having to click on a single link. Franchisees and franchisors can benefit from zero-click searches, optimizing content for Google’s featured snippets by answering consumer questions. Another method is optimizing your Google My Business profile and adopting local SEO tactics so your store is featured on the local three-pack.

• Nearly 70 percent of Google Assistant requests are made up of natural language searches (Google, 2017).

More searches today are made using natural language thanks to the rise of voice search. In effect, search engines like Google are getting better at finding the context and intent behind a search and not just finding the exact match in keywords. By optimizing your content for semantic search, you can respond to customer queries while also improving your chances of landing a featured snippet.

Franchise Advertising Statistics

Franchise advertising plays a pivotal role in driving franchise growth. With its precise targeting options, utilizing these methods can prove cost-effective for your business. Whether you’re using a centralized advertising model for enterprise marketing or a decentralized model where franchisees have free rein, taking advantage of franchise advertising services can make a significant impact on your business. Take a look at this franchise advertising section of our franchise marketing stats 2021 list for insights.

• Ninety-three percent of consumers use the internet to find businesses in their local area (BrightLocal, 2020).

In a separate study, 72 percent of consumers use search engines to find local businesses. These franchise marketing stats 2021 and the one that follows show you why your franchise advertising strategy should include search ads.

• The top three ad spots on search engine results pages attract 40 percent of all the clicks on the page for queries with high commercial intent (WordStream, 2020).

Queries that have high commercial intent are called transactional searches. They can either be product-, industry- or brand-focused and done by people at the end of the buyer journey. These are the types of searches that you want to target with franchise PPC ads because they are closer to converting. Just like in SEO, occupying a higher ad spot corresponds to a higher likelihood of landing that sale. 

• Consumers are 4X more likely to click on a paid search ad on Google (63 percent) than any other ad network (Clutch, 2018).

When using search ads, the best platform to use is Google. Google owns 70 percent of the market share for ads, which means it has a more extensive ad network than any other platform. And with billions of users using Google Search daily, your ads could potentially enjoy higher visibility. 

• Seventy percent of searches made through a mobile device result in a customer taking action within an hour (Main Street ROI, 2019).

Many different factors can affect the success or failure of your advertising campaigns. But taking a mobile-first approach to PPC ads increases the likelihood of your target audience being able to see your ads, which also improves your odds of landing a conversion.

Franchise Social Media StatisticsThe power and reach of social media should not be underestimated in today’s digital landscape. Both franchisors and franchisees understand the value of social media, which is why more and more multi-location businesses rely heavily on social media for their franchise marketing efforts. Below are some social media statistics for franchisees and franchisors to guide your social media efforts.

• The number of active social media users grew by 9 percent to pass the 3.8 billion mark in 2021 (Smart Insights, 2021).

This statistic shows that there are numerous viable social media channels to use to grow your online presence. Depending on your industry and whether you’re a business-to-business (B2B) or business-to-consumer (B2C) organization, you can use such platforms as Facebook, Twitter or LinkedIn to create a robust online presence.

• Social media is the leading franchise marketing channel for 55 percent of businesses in the United States (The Entrepreneur, 2019).

Today, social media is a crucial part of a brand’s online presence. Franchise businesses, in particular, look to social media to build a consistent online presence while expanding their influence across different locations. 

• Ninety-one percent of social media users access their favorite social platforms through their mobile devices (LYFE, 2019).

Mobile optimization isn’t just for SEO and PPC. By ensuring that your social media posts are optimized for mobile users, you provide greater access to a larger audience. You can do this by keeping posts short, the size and layout of images mobile-friendly and your links pointing to mobile-optimized landing pages.

• Seventy-one percent of consumers are more likely to recommend a brand to their social circles after having a positive social media experience (Ambassador, 2018).

Social media gives you a direct channel to connect and interact with your followers and prospective clients. By offering a positive experience, you can show them that you care, which also humanizes your brand. With the right approach, your social media marketing activities can result in increased word-of-mouth. 

• Here are the top four reasons why consumers will unfollow a brand on social media (Fast Company, 2020):

1. Poor Quality of Product or Support (49 percent)
2. Poor Customer Service (49 percent)
3. Irrelevant Content (45 percent)
4. Too Many Ads (45 percent)

Social media listening is an integral part of running a successful franchise. This allows you to get a feel of what resonates with your local audience. Keep track of your social analytics and consistently engage your audience in conversation to gain more insights into their preferences so you can create content tailored to their interests. 

Franchise Email Marketing StatisticsWhen it comes to enterprise marketing, the impact of email marketing isn’t just about sending emails to your contacts. Because branding is vital in corporate marketing, being able to deliver marketing emails directly to your audience’s inbox allows you to deliver a centralized message while still providing relevant, personalized content. Here are some email marketing statistics to guide your enterprise marketing campaigns.

• Only 44 percent of franchise business owners engage their customers with a newsletter campaign (FranchiseSoft, 2019).

A staggering 56 percent of franchises miss out on aggressive franchise growth just because they fail to engage their customers through email marketing.

• Twenty-one percent of emails are opened within the first hour of delivery (GetResponse, 2020).

Data from the same study reveals that an additional 41 percent of emails are opened within the next two hours of delivery. It just goes to show that emails are still one of the fastest methods of delivering marketing messages.

• Franchises have generated 320 percent more revenue when they automated their email marketing sequences (FranchiseSoft, 2019).

Automation offers so many advantages for the busy franchise owner. It frees up your time while still allowing you to nurture leads, provides a personalized experience, increases your targeting while reducing cost and allows you to execute your excellent marketing strategy perfectly. 

• Franchise newsletters receive an average open rate of 22 percent (Smart Insights, 2021).

That means you can easily reach 22 percent of your email subscribers directly through their inbox. Note that these are average figures across all industries. Your open rate could be higher with a better strategy.

• Seventy-six percent of people expect a welcome email when they subscribe to your list. Those who receive one show 33 percent more engagement with the brand (invesp, 2021).​

Welcome emails are your best opportunity to establish a relationship with your subscribers quickly. But as it turns out, it’s not just you who’s eager to start the relationship. According to the statistics above, 76 percent of people expect you to make a move after they subscribe. Once you do, they show more interest in your brand.

ConclusionIn this blog, we shared some of the most insightful franchise marketing statistics to guide your marketing strategies. We hope that you were able to glean information from our franchise marketing statistics 2021 guide that can help your franchise expand its influence and generate more growth.

Franchise marketing can be tricky because it requires a clearly defined strategy that benefits both the brand and its franchise holder. For franchise digital marketing strategies to work, the corporate office must provide their franchisees a certain level of freedom with their franchise marketing strategy to tailor their methods to their local audience.

If you need assistance from a top-level franchise marketing agency to generate success for your franchise, Swift Digital Marketing is here to help. We have worked extensively with both franchisees and their parent companies in assisting them to expand their franchise’s influence. Partner with an established agency that understands what it takes to build a successful franchise marketing strategy. Give us a call at (216)339-6041 or to schedule a consultation.
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Filed Under: Search Engine Optimization, Social Media, Email Marketing.