How franchise brands market themselves has rapidly changed as marketing technology has evolved and more advanced tools have emerged. As with many businesses, franchise organizations are experiencing growing interest in how Artificial Intelligence (AI) tools can improve their franchise marketing, but the results depend on how it’s implemented, controlled, and supported.
AI offers opportunities to streamline operations, enhance customer engagement, and drive business growth. This shift highlights a recognition of the need for innovation and adaptation in marketing. According to our recent State of Franchise report, an overwhelming majority of franchisees believe that AI can significantly improve their marketing performance.
87% of franchisees agree that more extensive use of AI tools would improve their marketing performance, and 33% of franchisors identify integrating and expanding their use of AI as a top business priority for the year ahead.
This highlights AI’s increasing importance in the franchise landscape. However, AI adoption is not without its challenges. Understanding and addressing these challenges is essential for successful implementation. So what are franchisors and franchisees sharing about their AI experiences today?
Benefits of AI in franchise marketing
Franchisors are really starting to see the magic of AI in their marketing efforts. AI boosts efficiency, helps create content that’s perfectly tailored to their audience, and provides deep insights through advanced analytics. In short, it’s a game-changer in the world of franchise marketing.
As with any small business, franchises struggle with limited time and marketing expertise while trying to maximize customer engagement and cost savings. Franchisors are already recognizing the areas in which AI can help tackle these challenges and realize these valuable outcomes.
How franchisors are enabling franchisees with AI tools
While AI marketing tools are still a relatively new development, most franchisors state they provide their franchisees some degree of AI support, including monitoring AI-driven performance, allowing franchisees to experiment with AI, and even offering training, resources, and best practices.
However, how franchisors are rolling AI marketing out to their organizations differs. While the vast majority of franchisors (94%) say they are more comfortable allowing franchisee use of AI marketing if corporate can oversee or control the outputs, in practice, the level of oversight franchisors are actually exercising varies widely. Franchisors who use Constant Contact for their franchise marketing get AI tools built in to help their franchisees market the franchise brand.
The future of AI in franchise marketing
Ultimately, franchisors are ahead of the curve when it comes to allowing and encouraging the use of AI among their franchisee organizations. But as franchisors are increasingly challenged to help their franchisees craft powerful, customized local marketing campaigns with limited time and resources, the utilization of AI will need to be deliberate, strategic, and highly supported at the corporate level.
Just as the State of Franchise Marketing report uncovered regarding franchise brand consistency, striving for balance will be critical as AI marketing technology continues to evolve and franchisees become more comfortable with these tools. Establishing smart, flexible guardrails that empower franchisees while ensuring quality and consistency is critical for franchise marketing to stay current with AI trends and tools. Embracing AI with these implementation and adoption challenges in mind will allow franchisors to position themselves and their franchisees for success in today’s competitive marketplace. Constant Contact helps franchises achieve success with AI tools that give brand control and support to franchisors and their franchisees.
For a deep dive into what franchisors and franchisees shared about their marketing challenges, successes, and opportunities, download the full State of Franchise Marketing report.
