To set your franchise business up for success in the new year, establish the right goal. Typically, a goal has three elements: 1) it’s specific; 2) it’s measurable and; 3) it has a time period attached to it. This means we need to use data analytics for goal-setting. And for franchisors, at least the ones who want to analyze past performance and turn it into actionable, measurable steps, we need standardized data sets across all franchise locations.
This blog post helps you apply data and analytics to set goals for your franchise business this year.
Start by looking past franchise performance
To anticipate the future, it’s important to look to the past. How did your franchise perform last year? Did you hit sales targets? Is performance over the years trending upwards? By how much? Look at the sales data collectively, by region and by individual franchise. Which franchisees are hitting it out of the park? Which are struggling?
Analyze local trends to set regional goals
It’s important to account for regional variations when assessing market opportunities. To better understand market variation, tap into publicly available information such as income levels by postal or zip code, average age or number of single-family households. (This census information should be available on your government website.) Correlate this publicly available data with internal sales data to better forecast future trends and manage regional expectations.
Look for red flags to predict and prevent trouble
Identifying outliers that aren’t on trend with overall sales data provides an opportunity to engage and support franchisees before they get into trouble. Dig into their marketing and promotions expenditure to see if this tracks with your more successful franchisees. Offering specific advice and numbers to hit, helps lagging franchisees turn struggles into success.
Benchmark to motivate franchisees
Bench-marking franchisees by comparison provides objective, non-confrontational data for ranking best to worst performance across franchisees. (Note: Just remember you need standardized data to create meaningful comparisons and benchmarks.)
Showing the positive results franchisees can expect to achieve when the right tactics are in place is a motivator for anyone with an entrepreneurial spirit. So show franchisees what’s possible. Let them know when to reach out for help to achieve greater success. After all, you’re in this together.
Do you have the data you need to set and achieve franchise goals?
A dependable, data-driven franchise management system should be on every franchisor’s 2020 wish list. Waterstreet FMS pools franchisee data into one system with a variety of data and analytic tools to help describe, diagnose, predict and even prescribe actionable next steps.
To learn more, sign up for a demo.
Hands down, one of the best software companies we have worked with. Waterstreet’s Field Service Management software provides The Maids with the core tools and technology to better manage our franchise system.
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