You have watched your franchise grow. Years of hard work to perfect your brand and products have made you an experienced franchisor. Your brand attracts and retains loyal customers. Now the question is, where do you go from here? How do you push your brand to the next level and realize your true potential?
The answers to those questions can be discovered using analytics.
1. Begin by Defining Your Franchise Customer Profile
To become a dominant franchise system, you need to identify who your best potential customers are and where they are located. This is based on the core principle that not every consumer will be your customer; customers are attracted to different brands depending on how those brands align with their lifestyles. Once you’ve identified the characteristics of the consumers who make up your core customer base, you can identify where other consumers with those same characteristics are clustered. This plays a crucial role in determining your franchise’s true potential, selecting winning sites, and driving revenue through marketing.
2. Identify the Characteristics of Successful Sites
After defining your customer profile, you need to study the characteristics of successful sites. What sets those sites apart from those that have disappointing sales performance? Having the right concentration of consumers that match your core customer profile is one part of the equation, but there are many other factors that influence performance. Wrapping these factors into a site selection model gives you confidence when helping franchisees to select where to open new locations.
3. Determine How Much You Can Grow
Ultimately, you need to answer the question, “How much can I grow?”
To maximize franchise system revenue, you need to quantify your potential beyond your current market and across the United States. Once again, this can be accomplished using analytics. By using your customer profile, site selection model, and desired franchise territory criteria, sophisticated algorithms can score every possible combination of sites to determine the optimal placement and total number of locations. These insights allow you to avoid both underselling and overselling franchise territories – maximizing revenue while avoiding penalties.
4. Drive Revenue Through Targeted Marketing
There are multiple ways to achieve your goals as a franchisor. Optimizing your current markets by helping your franchisees to market to those consumers who resemble your core customer base is an important part of the process. If you understand who your customers are, then you can market to other households with similar characteristics and maximize revenue from existing customers. Smart targeted marketing programs can help you reach your franchise system goals.
The Bottom Line
The key to becoming the franchise system of your dreams is by making informed, smart business decisions.
The best decisions come from the best analytical solutions and the best solutions come from the best data. Here at Buxton, we provide those types of solutions leveraging the most sophisticated analytical processes and back it with nearly 25 years of experience. Find your answers for growth. Explore our franchise solutions.