In this video interview, Don MacPherson of Modern Survey reveals a surprising and disturbing statistic: 70% of employees in the workforce today are either under-engaged or disengaged. Watch our interview to hear Don describe the four drivers of employee engagement:
In today’s economic climate, hospitality employees are particularly vulnerable to unionization. This video features David Whitlock of Elarbee Thompson, who advises franchisees on how they can prepare for labor efforts and promote satisfaction in the workplace.
We had the pleasure of speaking with Bob McKinnon, founder of YELLOWBRICKROAD, a New York-based agency that designs social change through programming, communications, advocacy, and action. Bob offers insight into the benefits of cause marketing and corporate social responsibility for businesses, as well as tips for restaurants and retail stores to consider when beginning a program to contribute to their communities. I encourage you to listen below to learn more.
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Has your business participated in a cause marketing campaign? I welcome your comments in the forum below.
In the last post, I defined cause marketing as one component of Local Marketing that benefits both a corporation and its nonprofit partner.
There are many ways for franchisors and franchisees to engage in cause marketing. Joe Waters, author of a blog dedicated to cause marketing, provides a thorough overview of the different types of cause marketing campaigns companies deploy. Several types I’ve seen in our industry include point-of-sale, or when businesses solicit shoppers for donations; purchase-triggered donations, when companies donate a portion of profits; and message promotion, when a business uses its resources to promote a cause. Recent examples of successful cause marketing campaigns in the QSR/Fast Casual industry include Smashburger’s timely “Help Japan” program, Bojangles’ annual Shamrocks Against Dystrophy fundraiser, and the “Brew-lanthropy Project” at Seattle’s Best, which provides a $5,000 donation and free coffee to customer-nominated charities across the nation.
Synq Solutions is a proud collaborator with CKE Restaurants, Inc. in the Pink Star Fundraiser, an effort to raise money for breast cancer programs and awareness. We support the program’s marketing in a number of ways, including through the donation of commemorative pink Happy Star® cutouts that customers purchase for $1.
Another of our clients, Chick-fil-A, is especially versed in successful cause marketing on a local level. Each Chick-fil-A location offers events and programs unique to their location. A good case study is the Chick-fil-A location in nearby Decatur, Georgia. This restaurant leverages connections with local schools, from elementary schools to Agnes Scott College down the street, to raise funds for education, and most recently, relief for Japan. Every Monday this location reaches one of their target demographics, parents with young children, through Family Night. Complete with a Chick-fil-A Cow appearance, parents and kids receive discounts on meals in exchange for participation in various fun and community-inspired events. Events include science experiments, guest speakers about careers, and collaborative efforts with local nonprofits. Family Night is only one example of this franchise’s outreach; the location also sponsors a weekly college night with discounts for students, as well as other special events for families.
Founded on principles of servant leadership, it doesn’t surprise me that Chick-fil-A is a leader in cause marketing. According to a Fast Company article on Chick-Fil-A’s leadership, president and chief operating officer Dan Cathy said, “The closer top management is to the customer, the more successful an organization is likely to be.” This leadership approach seems to be paying off; Chick-fil-A has grown to become the second largest quick-service chicken restaurant chain in the United States, with over 1,500 locations. The Chick-fil-A website states that system-wide sales in 2010 reached $3.5 billion, an 11.37 percent increase over the chain’s 2009 performance. With continued focus on engaging local communities to give back to their neighbors here and abroad, I believe Chick-fil-A will continue to grow.
Do you have questions about cause marketing or how Synq Solutions can help with your campaign? If so, please let me know in the forum below.
A topic that has emerged in recent discussions with clients and prospective clients is cause marketing. This subject is of particular interest to me because of my role in developing the technology Synq uses to help clients leverage Local Marketing campaigns. In this post, I’ll delve into several frequently asked questions about cause marketing. If you have additional questions, I invite you to leave them in the comments section below this post.
What is cause marketing?
Cause marketing, also called cause-related marketing (CRM), engages profit-generating companies and nonprofits. Through successful cause marketing, both organizations gain exposure that enhances brand awareness. Cause marketing is not based on a donation; rather, the relationship between the corporation and nonprofit is mutually beneficial.
An example of cause marketing that is especially relevant today is Starbucks’ celebration of Earth Day—customers who purchase coffee or tea today will receive a free reusable mug. If you’re ahead of the curve and already have a reusable mug, you’ll receive a free cup of coffee. Starbucks is using a variety of media to promote this celebration, from blog posts to video to Facebook.
What is the difference between local marketing and cause marketing?
I’ve discussed Local Marketing in depth in our blog series on the topic, and define it as the strategy and actions that communicate to your customers in a manner, and with a message, that is relevant and meaningful based upon localized differences. The goal of Local Marketing is to drive favorable customer behavior as a result of this more targeted communication.
Cause marketing is one component of local marketing, as it facilitates a company’s community involvement. While every local marketing campaign is not a cause marketing campaign, many cause marketing campaigns are local marketing campaigns.
How do I get started?
If you’re a franchisor or franchisee, the following questions modified from cause marketing expert Paul Jones may be helpful as you choose your nonprofit partner:
In upcoming posts, I will expand on tips for getting started with cause marketing and dissect a successful example of a cause marketing campaign within the QSR/Fast Casual industry.
Do you have questions about cause marketing? If so, please let me know in the comments section below.
We had the opportunity to speak with Linda Duke, CEO of Duke Marketing and editor of Restaurant Marketing Magazine, about her upcoming panel at the Restaurant Leadership Conference. With extensive knowledge of the QSR industry and an amazing sense of humor, her panel is sure to be both informative and entertaining.
Linda will lead three Arizona-based top restaurant executives through questions about building sales, generating awareness for your brand, and creating a restaurant that consumers seek out in any kind of economy. Panelists include KC Moylan, President of Pei Wei Asian Diner of P.F. Chang’s China Bistro; Kristin Cronhardt, Vice President of Marketing for The Tilted Kilt, a pub and eatery that gained its first success in Las Vegas; and Rachel Phillips-Luther, Vice President of Marketing and Brand Innovation for Kona Grill, a sophisticated eatery highlighting American cuisine, sushi and designer cocktails.
Panelists will share the strategies that have made their marketing techniques successful and attendees will gain ideas for implementing their own marketing efforts.
I’m looking forward to attending this panel and sharing our insight from the event in upcoming posts.
I hope to see you all at the conference, but if you can’t make it, feel free to leave specific questions you’d like me to ask in the comments section below.
We’ve been developing our Intelligent Profiling methodology for over eleven years, and I’m delighted to announce that our focused attention has resulted in our second white paper.
If you’ve been keeping up with our blog, you’ve seen several videos about Intelligent Profiling, as well as posts exploring how it relates to recent industry news.
If you’re unfamiliar with the concept, we define Intelligent Profiling as a methodology that combines technology, data organization, data collection, and operational processes into a unified workflow for more effective marketing promotion execution. The white paper gives a detailed explanation of these four categories that distinguish Intelligent Profiling from other fulfillment providers’ generic data collection process.
We often hear that one of the most daunting components of location profiling is collecting and organizing store data. In the white paper, we explain how our approach streamlines the data collection process and allows for ever-changing data to be used effectively. We use real-world examples to show how this approach may apply to your business, including a case study that explores how Qdoba successfully used Intelligent Profiling to roll out two new menu promotions with varying options, price points, and caloric information.
In addition to relieving stress over data collection and organization, we walk through the process behind integrating the profile database engine with operational workflows. This integration is a critical component of Intelligent Profiling, and the secret behind our ability to save clients up to 22% on the cost of production and fulfillment.
The following chart illustrates how the integration of Intelligent Profiling components results in unique kits of marketing materials for individual restaurant or retail locations:
Cost savings aren’t the only benefit of Intelligent Profiling, but rather the icing on the cake. Sherri Reed from The Johnson Group, Agency of Record for The Krystal Company, sums up her experience of Intelligent Profiling’s varied benefits:
“Having over 380 locations with individual needs can be difficult to manage; however, by using Synq’s Intelligent Profiling technology, I am able to identify the individual needs of every location. This system helps me manage the cost of POP to help plan individualized marketing materials when launching products, supplies accurate detail reports for shipping and accounting needs, as well as allows me to localize my marketing efforts with custom messages for individual locations. This system is honestly like having all the data at my fingertips every day.”
I invite you to click here to download the full white paper. If you have thoughts or questions about Intelligent Profiling, I welcome you to leave them in the comments section below.
As we continue our series on Intelligent Profiling, I invite you to listen to Glenn Haertel, EVP of Sales and Marketing, explain what makes Synq Solutions’ Intelligent Profiling unique. He articulates how profiling data is integrated into every step of the work flow, resulting in substantial cost savings for clients– typically between 10% and 20%.
When it comes to store and location profiling, the perfect database simply doesn’t exist. Even if we could achieve perfection, it would only last momentarily. With any larger retail or restaurant organization, stores are constantly opening, moving, and closing at a rapid pace. Then we must consider the ever-changing city and county regulations regarding exterior signage. As much as we’d all like to think that we could achieve these standards of perfection in our data collection, it would require infinite costs to get there.
My advice is to gather information as best you can, then act on it. Data collection is always a question of time and money and how much you’re willing to invest. Let’s look at an extreme scenario: a franchisor could hire people to go out to each store location and physically gather all of the necessary information—however, this would be a huge investment, and not something I’d ordinarily recommend.
The alternative is to contact your franchisees directly—this can be done through the use of forms, over the phone, or interactively (via your website). Or you could use a combination of all three, depending on your personal preference.
Regardless of what route you decide to go, you’ll want to generate a clear plan for how you intend to collect your data points. When you consider every possible merchandising element in a store—menu boards, signage, demographic data, etc., you could potentially be looking at hundreds of categories requiring information. For this reason, it’s best to collect your profile data in waves. For example, you could present 10 questions to your franchisees every quarter and build your database incrementally. Operators are much more likely to respond and provide the information you need if you approach them in this manner, as opposed to asking them hundreds of questions at once. It’s critical to prioritize the elements that carry the most impact, and collect this information first. (The 80/20 rule certainly applies here.)
We support our clients by providing data collection services internally, whether it’s through forms, phone calls, or web. This information is collected in real time as we interact with store locations to insure that the most current profile information is reflected in their databases. The findings are then integrated into our fulfillment process. Each order is based on the restaurant or store’s unique location, ensuring that we deliver accurate kits while minimizing costs and waste. Additionally, when your locations receive only what they need, shipping costs are greatly reduced.
This process is quite relevant to the local marketing workflow, whether it relates to price points, product issues, or demographic information. I’ve found that many companies and brands to be fearful of local marketing because they mistakenly believe that the costs or level of complexity may be too high. Intelligent Profiling eliminates these concerns and lays the foundation for a comprehensive, actionable database that ensures accuracy.
And now over to you—what challenges have you encountered when it comes to store profiling?
For many organizations, location profiling is simply the process of collecting store attribute data and loading information into a spreadsheet. While this is a step in the right direction, I’ve found that this approach is severely limiting in practice. We’ve developed a methodology combined with supporting technology that we refer to as “Intelligent Profiling”, and it overcomes the limitations of most location profiling approaches.
After eleven years of perfecting the profiling process, and working with both small and large companies, we’ve found one thing to be true: flexibility is critical. Location profiles and the information that they store are dynamic—the data is often incomplete and continually changing. Our approach enables clients to move forward despite these imperfections, while developing a process that facilitates future expansion and continual improvement of processes.
There is a wide range of attributes that can be collected that will ultimately be used to impact which marketing materials are delivered to a location. Some examples include:
Typically, this data is scattered throughout organizations, or non-existent. Collecting the data and providing for an evolving data environment is an integral component of Intelligent Profiling. Initially, some of our clients started with only 4-5 attributes in their database, but in time their systems evolved to included hundreds of profile elements.
With so many categories and subcategories of information to consider, you can imagine why distilling this information can be an extraordinary challenge. The process isn’t as simple as creating a database in which you collect arbitrary information. You must have a plan to collect relevant data, and have a flexible database that changes as you evolve.
The productive use of profiling data is another key concept of Intelligent Profiling. Traditional spreadsheets and stand-alone databases are difficult and time-consuming to access, and significantly impact organizational agility. A critical improvement is the integration of the profiling database engine into the operational workflows. The result: a database that drives marketing processes to deliver exactly what is needed by any location in real time.
In this Intelligent Profiling blog series, we’ll examine ways to overcome the challenges associated with store profiling, data collection, and accuracy rates. We’ll also show you how powerful Intelligent Profiling can be—when it’s executed effectively.
As always, we look forward to hearing from you.
I continue to be surprised by the extremely long timelines required by many companies to execute promotional campaigns (4 to 5 months is not unusual). I am equally amazed that the promotional finish line at these same companies always seems to be a last minute dash, despite the long timelines. I suspect that for some brands, this mode of operating has been in place so long that it has simply become habit.
Fortunately, some brands have broken out of this frustrating behavior, and are maintaining agile workflows that allow them to respond to market trends in less than half the time of their competitors. Ironically, these shorter timelines tend to run more smoothly as a result of the improved processes that were necessary to shorten the timelines. Further, when companies are sufficiently prepared, they don’t duplicate their work halfway through the process after realizing their promotional concept was off the mark.
Achieving significant reductions in the overall timeline requires tight coordination by all parties involved in promotion development and execution. Each step of the process needs to be analyzed to identify opportunities for time and cost reduction. The savings are found not just within a process, but also in between processes. Too often, individual steps may be implemented quickly, yet brands are forced to wait days for further input.
The use of technology and re-structured processes are essential to achieving meaningful gains, for example:
In the end, you must ask yourself: What’s the value of shorter execution cycles on promotional campaigns? I believe that companies that adopt agile workflows will ultimately save money and have more relevant and effective marketing campaigns.
What’s your point of view? Be sure to let me know in the comments section.
The dynamic nature in the execution of National Marketing Campaigns leads to waste. The amount of waste is generally dictated by the complexity of each campaign (driving up waste) and the relative effectiveness of the processes and technology applied to workflow (driving down waste). While there are many costs involved with these campaigns, I’m going to focus the discussion on waste related to the production and fulfillment of POP materials specific to each location.
When it comes to POP materials, waste is both simple and complex. Simplicity applies to situations where POP materials are produced but aren’t used (over-production), or shipped to stores that can’t use the POP elements. A more complex form of waste: sending less effective POP elements to stores and using standardization of messaging (offers, images, price points, etc.) in an effort to simplify execution. The inherent lack of localization in this approach inevitably has some negative impact on results; however, measuring exactly how much constitutes “waste” is a complicated process.
Ironically, most of this waste is driven by an attempt to simplify in the face of inadequate information systems. The over-production of materials occurs when there is a lack of confidence in the available data regarding quantities, or a fear of running out– and the assumptions regarding the cost of reprinting drive up this waste. Shipping POP elements to locations that can’t use them (due to the specific physical configuration of a store, or local ordinances) is driven by the “standardization” of POP kits. Many companies have taken this approach in order to simplify the fulfillment process to a degree that they perceive to be manageable. POP kit standardization is not only unnecessary—it’s wasteful. A fulfillment process should be capable of efficiently shipping unique POP kits to every location based upon the specific profiled needs of the specific store. For some companies, cutting waste in these areas by applying data-driven methods has resulted in material cost savings as much as 15% to 25%.
Addressing the waste inherent in standardized messaging requires a rethinking of the POP execution process, as well as the belief that relevance of the messaging is tied to results. The technology and workflows available today deliver cost-effective, highly localized POP materials. Leveraging these capabilities in a messaging strategy is the challenge—just know that the delivery systems are available whenever you’re ready.
If you want to learn more about reducing waste in the POP execution process, please feel free to leave me a comment. I’d love to hear from you.
Today, restaurants are subject to various forms of foodservice legislation on a daily basis. This has a tremendous impact on businesses—for this reason, it’s of vital importance to understand and acknowledge these legislative issues as an industry.
Ken Cutshaw, EVP, chief legal officer, secretary, and chief compliance officer of the Cajun Operating Company for Churches Chicken moderated the Legislating Foodservice session and introduced the following three panelists:
Charles Hoff: general counsel, Georgia Restaurant Association
Keisha Carter: Carter Political Group & RaZors Consulting
Mike Vaquer: lobbyist, Georgia Restaurant Association; Founder; The Vaquer Firm
Cutshaw opened the session by discussing some vital issues that are currently being addressed not only by the federal government, but by the state government as well. He pointed out that many restaurant owners feel that they have very little impact on legislation and public policy; however, when we come together as restaurant associations or within group conferences, we can make significant changes. Case in point: we’ve seen recent success on the credit card interchange swipe fees.
Interchange Swipe Fees
Charles Hoff commented on this topic by pointing out that the interchange fee has been “the bane of restaurateurs’ existence for three years”. Between 2001 and 2008, costs catapulted from 16 billion to 48 billion—in terms of overall costs, it’s been #3 behind food and labor. Thankfully, the NRA and other organizations joined forces and lobbied against this legislation, which provided some welcome relief. Now, improved legislation stipulates that debit card charges must be “reasonable and proportional to the cost of processing.” Additionally, merchants will have set costs for credit card usage, allowing them to set a $10 minimum purchase amount.
Hoff pointed out that while we’re not quite where we’d like to be with the legislation, it’s a great start.
Card Check Legislation
Cutshaw shifted the conversation to card check legislation, and Keisha Carter explained that this was one of the unions’ biggest pushes in 2008. The legislation would allow employees to go into businesses (mainly retail establishments) with a card, fill it out, check a box, and employers would suddenly find themselves subject to the unionization process. In the next few weeks, we could see a majority shift in Congress, which would delay and possibly deter this proposed legislation. That said, card check legislation isn’t going away, and businesses should educate themselves on how they could be affected by this bill. As it stands, it’s likely that we won’t see this legislation addressed in 2010, or even in 2011.
Menu Labeling with Nutritional Values
Cutshaw introduced the much-discussed topic of menu labeling, and Charles Hoff responded by raising an interesting point: many restaurant chains actually support this legislation. However, issues arise when an uneven patchwork of nutritional policies are put in place. These challenges would be preempted if we could adhere to one uniform regulation, which would allow us some protection from lawsuits and ambiguity. Although the federal government will eventually preempt state regulations, many jurisdictions are taking steps to initiate policies for their own protection.
Mike Vaquer commented on this topic as well, and warned restaurateurs not to rest on their laurels and assume that the issues are being resolved with the federal government’s intervention. He cautioned us to be wary of overzealous food inspectors and regulatory “creeps” who attempt to implement ridiculous stipulations, such as disclosing the origin of species of fish for items on a menu, or indicating the temperature of cooked meat, e.g. medium, well-done, rare, etc. Vaquer encouraged the audience stay vigilant, and to inform and question governmental regulatory figures about imposed regulations that seem questionable.
Keisha Carter urged us to stay involved from a regulatory perspective, and pointed out that currently, the FDA is in a “comment period”, where restaurateurs and other interested parties can go online to fda.gov and communicate their questions and concerns regarding legislation. This sort of proactive involvement applies to our communications with federal legislators and congresspeople as well.
Healthcare Reform
Keisha Carter also contributed valuable advice on the topic of Healthcare Reform, and mentioned the upcoming statewide elections—which serve as a huge opportunity to take advantage of relationships with our insurance commissioners. Carter pointed out that when it comes to regulatory healthcare issues, the restaurant industry is an area that is often ignored. For this reason, it’s important to stay in touch with legislators and stay informed of regulations that may or may not apply to your state.
First Lady Michelle Obama / The Childhood Obesity Pledge
Cutshaw segued from the subject of Healthcare into Michelle Obama’s pledge to make childhood obesity her personal cause. Keisha Carter took on this topic, and explained that the First Lady’s plan to lower the rate of childhood obesity by 5% by the year 2030 is a considerable goal. The logic behind the movement is that healthy children will grow up to be healthy adults, and make healthier food choices.
Keisha mentioned that certain aspects and repercussions of this pledge are reminiscent of the menu labeling issue. For example, the government is essentially asking the industry to self-regulate by stopping the use of certain marketing tools, such as kid-friendly characters to entice children to eat at a particular restaurant. One study revealed that children would be more likely to eat more fruits and vegetables if a fast-food restaurant such as McDonald’s told them to do so. Therefore, many jump to the assumption that the QSR/fast-food industry is responsible for kids’ food choices. Carter mentioned two plan recommendations under discussion:
1) food and beverage industry and the media and entertainment industry jointly adopt meaningful, uniform nutrition standards for marketing food and beverages to children, and establish a uniform standard for what constitutes marketing to children
and…
2) restaurant industry should provide technology to help consumers distinguish between advertising for healthy and unhealthy food and limit their children’s exposure to unhealthy food advertisements
These recommendations are going as far as suggesting that parents will have the ability to set parental guidelines on their televisions and block certain restaurant advertisements. Television food rating systems will come into play, causing parents and children to make healthier choices. Another possible future development is additional taxes on foods considered unhealthy.
Carter made an excellent point: if school systems would stop removing physical education and sports from school programs, children would be far less likely to be at home watching television and eating junk food. As businesses, we need to encourage kids to go out and play by supporting local softball teams, etc.
One of the major takeaways of this session was how crucial it is to maintain constant contact with our legislators. Restaurateurs have the ability to open their doors to fundraising events and thus establish deeper relationships with our legislators. If we join forces by leveraging the power of our associations and organizations, our voices will be heard.
A year has passed since publishing my first post on the subject of Local Marketing, and I thought it might be interesting to shift the discussion towards the execution of National Marketing Campaigns. National Campaigns are familiar activities for most QSRs and retailers; these promotional activities typically involve a series of marketing tactics including media (TV, radio, and print), direct to consumer marketing, and on-premise point-of-purchase (POP) signage.
Every marketing organization is challenged with coordinating all of these elements into a well-orchestrated campaign that fits each retail location, works for every market, and is executed simultaneously. It is because of these challenges that opportunities exist for improvement; I don’t think this is a big surprise to anyone. However, identifying and implementing improvements has been difficult for most companies.
Some of these issues and the dynamics of POP program execution were covered in the blog titled “Synergy of Services.” I am planning to delve into the details of National Marketing campaign execution in my next few blog posts to show you both the obstacles, as well as the benefits, of making significant changes to your approach towards campaign execution. In the mean time, if you have a particular challenge that you would like me to tackle, send me a note at blog@synqsolutions.com.
In our recent white paper, we tackle the subject of Local Marketing by defining its role in an overall marketing strategy, revealing the necessary tools for a successful execution, and providing a glimpse into how technology is making LRM more accessible than ever. Here is an excerpt from the white paper describing the necessary tools for local marketing success:
Tools For Success
For Local Marketing campaigns to be successful, operators must have all the tools necessary to execute them. If operators use only some of these tools, results will be less robust. It is the corporate brand’s responsibility to ensure operators are adequately equipped with the following components:
> Accessibility – The technology platform used to view, customize and order Local Marketing materials must be easily accessible to all operators no matter where they are located or how they are wired. A Web-based solution is generally considered the best option as opposed to a program that must be installed locally or downloaded.
> Ease of Use – The Local Marketing program should be easy and fast to use – requiring only minutes out of their busy day. This applies to viewing materials, customizing them, placing an order and understanding what to do with the materials once they arrive. The number of steps in each process should be minimal. And instead of giving users an infinite number of customizable options, provide them with a manageable list to choose from.
> Modular Design – Marketing elements should be designed in a modular fashion so that individual components can be customized. This is where local operators have an opportunity to utilize their knowledge of community, preferences and traffic patterns. The design should also be agile so that marketing groups can send new information and keep marketing materials fresh – without having to design each piece from scratch.
> Cost Effectiveness -The program must be cost-effective. It should leverage a print and fulfillment workflow from many locations, which provides an opportunity for significant buying opportunities and operational efficiencies. Individual orders also should be handled with ease.
> Funding Model – The funding model is something that can be a barrier to implementation. Most franchise agreements require franchisees to invest a portion of their own money, but there has to be an incentive for them to dig into their own pocket when it comes to Local Marketing. Local Marketing is perceived as a field of risk and experimentation, which can deter investment. The most successful models have aggregated everyone’s spend together so that individual risk is minimized. As a result, franchisees are more likely to test new ideasand find success.
> Education – The most important component of Local Marketing is operator education. This includes the mechanics of the system, as well as which customer situations are most conducive to Local Marketing efforts. For example, the franchisee should consider the customer behaviors they are trying to influence and the results they hope to achieve.
You can read the white paper in its entirety here.
And now over to you: do you have any Local Marketing insights you’d like to share?
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