Last week we wrote about the up-and-coming concepts that are set to take over the franchising industry.
What’s particularly interesting about those franchise concepts is the fact that they have been exploding onto the scene from well-established industries that traditionally haven’t done much in the franchise space.
For instance, while big-box gyms have utilized the franchising model, it’s the up-and-coming fitness studios with smaller footprints that are gaining muscle with specialized workout options such as Pilates and kickboxing.
But even with all that growth, emerging franchises and smaller brands face tremendous challenges.
The franchising industry is filled with well-known slogans, recognizable logos and enduring brands that have been around for years.
So for the small franchise groups that are coming of age and looking to play in the same space as the large franchise groups, one of the biggest challenges they face is the staggering amount of competition.
The Haves and The Have Not’s
We live in an age where customer data gives retailers a competitive edge and serves as the foundation for greater efficiency and expansion – and generally speaking, separates the businesses that are growing from the ones that aren’t.
Traditionally, the larger franchise groups have been the only businesses with enough resources at their disposal to leverage the power of big data and analytics. The emerging or small franchises who don’t have data, have limited or unreliable data, or don’t have the means/resources to collect data are then forced to challenge those who do.
In short, franchisors are not competing on a level playing field.
Don’t Be Left Behind
Typically those who don’t collect customer data or have limited or unreliable data aren’t able to answer basic questions about their customers or determine what other variables define a good location.
However, not all is lost.
Franchisors can still offer analytic, data-driven support to their franchisees so they don’t have to walk in the dark when entering their first market.
Buxton’s Emerging Franchise Growth Solution is tailored for those concepts that are beginning their growth process and need help illuminating the way to avoid making major mistakes.
We can build a model based on the data points you do have – or if you have no customer data, based on profiles of your competitors as well as our extensive industry knowledge and experience.
This model will show you who your customers are and the value they have to your business.
With this information, it’s possible to determine how many territories you can open or sell and the trade areas that potential sites should be located in.
And with a customer value site score, you can understand the probability of success at specific sites.
The customer value site score profiles how a potential site compares to your existing sites not only based on the customer value scores for residential and workforce populations, but also based on the number of core customers; cannibalization factors; competitor, trade area and demographic metrics as well as custom selected variables.
The Bottom Line
There are a number of established brands in the marketplace who will continue to grow, but there will always be opportunities for new and innovative ideas to take root.
With Buxton’s Emerging Franchise Growth Solution, you can make informed, data-driven decisions so you can growth with confidence.
If this solution sounds like it would be valuable in your growth efforts, then talk with us today.