How to Set Your Franchisees Up for Success
From The Buxton Co
Itís a competitive market for franchisees, who compete not only for customers, but also for internal resources and attention from their franchisor.
Franchisees know that they have a higher likelihood of failing if they are poorly managed and neglected by their franchisor Ė which is harmful not only for the franchisee, but also for the overall brand in a market.
Thatís why itís vital for franchisor leadership to take a hard, close look at the way they determine both corporate territories and their franchisee regions to minimize cannibalization.
In order to do this, corporate franchise leadership needs to make objective, data-driven decisions when it comes to franchise territory determination.
Franchise territories should be decided only after an in-depth, multi-dimensional analysis has been conducted to ensure cannibalization is not an issue. Because at the end of the day, itís too risky to assume that each franchisee will objectively assess and operate within their marketís trade areas.
But more than just combating cannibalization and managing territories, itís vital that franchisors know who their customers are, so they can determine market optimization and avoid the repercussions of underserving a particular trade area.
Brand ownership needs a solution that identifies current and future customers.
Data-driven solutions offer analyses without bias so that franchise leadership can make strategic, yet objective decisions across the board by leveraging a universal foundation thatís rooted in understanding customer data Ė regardless if the customer lives in small town USA or a major metropolitan area.
The Bottom Line:
Customers are the life-blood of every business concept you can imagine. Franchisors who truly understand their customersí lifestyles and behavior patterns have a distinct advantage over those who do not. Help your franchisees start on the road to success by giving them the tools, information and attention they need.
Buxton is the leading customer analytics firm that helps organizations identify who their customers are, where those customers are located, and the value those customers have to the organization.
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