Why social media matters...
Nick Williams, managing consultant at Ashtons Franchise Consulting, on how to assess a franchisor brand and their digital presence.
Love it or loathe it, social media is here to stay, so the franchise industry must think about how to harness it to the utmost advantage. There are almost three billion social network users worldwide and so digital presence is an important tool in growing a franchise network. The range of social media also means that networks have a variety of channels at their disposal for getting their message across to customers.
Benefits to a franchise brand:
Advertising and promotion – Engaging in social media raises brand awareness and promotes goods and services, either by direct advertising, or in the form of a more subliminal message (eg posting images on lifestyle platform Instagram).
PR and customer interaction – Social media provides franchise networks with a direct communication channel to their target market and customers. Not only is a franchisor able to provide a constant newsfeed about developments in, and stories affecting, the brand, but it is also able to monitor customer satisfaction, either by directly seeking feedback or monitoring online traffic. Franchisors are subsequently able to react to feedback, especially where negative, to improve their brand image.
Marketing obligations – By engaging in social media to raise the profile of the network and the goods and services offered, the franchisor is taking steps to fulfil its express or implied obligations to market and develop the brand.
But also consider:
Copyright issues – Franchise brands, perhaps more than any other businesses, would consider that having a clear and consistent branding message is key to their success. A franchisor may wish to ensure that franchisees are only using the trademarks and the trade name in a manner and style approved by head office. Misuse of these can have an adverse effect on the reputation of the network.
Advertising – Both the franchisor and franchisees need to be mindful of advertising laws and the way in which they can offer their goods and services, especially when operating in the business-to-consumer marketplace. Given recent controversy generated by ambiguous celebrity sponsorship posts, franchisors must consider laws relating to product endorsement and how they allow third parties to engage with their products or services.
Privacy/GDPR – Franchise networks usually have a wealth of information about their customers. They need to ensure that information is collected (or consents are obtained) to allow them to progress their social media campaigns without falling foul of GDPR. For example, when using an agency to assist in the running of a targeted advertising campaign, a franchisor may wish to provide that third party with personal data relating to its customers. In this case, it is imperative that the necessary consents have been obtained.
Employment issues – One of the challenges of operating a franchise network is that franchisors are only able to exercise limited control (if any) over its franchisees’ employees. While franchisors are not liable (yet) for the actions of those employees, any misuse of social media by them could cause damage to the network's reputation.
These risks not only extend to the employees breaching some of the laws highlighted above but also in engaging with customers through social media (as part of the user experience) in a way which negatively impacts on the brand from a PR perspective. Furthermore, franchise brands, as with any other businesses, are at risk of employees posting reckless, abusive or derogatory content on their own personal social media accounts. If connected to the brand, this could negatively impact on it.
When online content goes viral, it attracts millions of viewers. An employee’s inappropriate behaviour captured on video and circulated could have a direct legal or regulatory impact on the franchise.
What can your franchisor do around social media usage?
The franchisor can implement policies, procedures and practices to mitigate these issues and enhance the benefits of social media. Ask your chosen franchisor whether they have the following in place:
Brand guidelines – It is crucial that franchisors have guidelines detailing how and when their brand’s trademarks and trade names are to be used.
Social media policies – Franchisors should ensure that they have a comprehensive social media policy for the network, highlighting the risks and benefits of social media and providing constructive advice on maximising its benefits. They should also include an express obligation in their franchise agreements to comply with such policies.
Training – Franchisors should consider providing training, highlighting the need to stay on message, as well as some of the legal issues and implications.
Privacy policy/consents – It is essential that a franchisor considers carefully how it intends to use customers’ personal data and where it wishes to send the data. This should then be confirmed in a privacy policy and the franchisor should seek any necessary consents from customers.
Monitoring – Being proactive is usually the best course of action. Where a franchisor has sufficient resource, monitoring the network’s use of social media can be an effective way to mitigate any negative publicity and avoid legal issues arising.
Used well, social media is a real benefit. Used badly and it is a time bomb waiting to explode. It can’t hurt to ask a franchisor how they harness and monitor social media as a brand when you’re researching business opportunities.
