Market Positioning and Customer Franchise

Demand Generation
Customer Franchise
Need Recognition
Solution Attraction

Customer Experience

Marketing Efficiency

Customer Franchise

Customer franchise is very useful concept, even if it is a somewhat dated term outside of the world of franchising (fast-food chains, lawn-mowing businesses, print and copy shops for small business, etc).

Customer franchise refers to customers' feelings and behaviours towards a business, the strength of their relationship with the business, and it is an important driver of repeatable revenue streams.

Customer franchise is also an intangible asset of a business, and is sometimes monetised as "goodwill" by accountants. It is related to brand value - although customer franchise goes way beyond brand itself. Lately, some marketing thought leaders have begun to refer to "customer equity" (linking customer franchise to probable lifetime sales resulting from such relationships).

Customer franchise is at the heart of demand generation and customer retention activities, since it encompasses customer preference for a brand, buying patterns and behaviour, and sales channel preference.

Customer franchise is made up of several related elements:

Market presence

... of the business. The "volume knob" in terms of how strong a voice and how visible the business is in the eyes and ears of its target market. Example of market presence

Accessibility, convenience and comfort

.... of dealing with the business or in obtaining its products and services. This includes customers' familiarity with places they can gather any pre-purchase information, knowledge of purchase methods, comfort levels with these purchase methods, and knowing the experience will be hassle free. Examples

Awareness

.... among the right target market, of the solution, in the customers' consciousness - either directly through experience and contact, or through advertising, sales, media coverage and public relations activities.

Reputation

..... of the reliability of the solution's match to customers' needs among prospective customers and with their sources of influence (family, friends, colleagues, publications, opinion-leaders, advisors, etc). Example

Brand image

.... including customers' perceptions on how users of the product or service are viewed by others.

Brand affinity

..... the attraction that customers feel towards the brand.

Consistency

..... of delivering positive and reinforcing customer experiences to users of the products or services (leading to customer loyalty)

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