Franchising NetworksFranchise Networks
Digital transformation has changed the behavior of consumers at the point of sale. Customers identify with brands and look for the best deal across a variety of sales channels.
How can a franchisor anticipate the needs of their customers?
Yes, it’s possible to innovate within a franchise and the search for new ideas is a key success factor for franchise success. Franchisors must be able to adapt to changing market circumstances to keep their global influence.
Innovations can be made in logistics, products, marketing strategy or the communication campaigns. The need for change can be initiated by the franchisor, the marketing team or the research and development department. Many franchisors are supported by external experts in their change initiatives (communication agencies, specialists of franchising networks and change management, web designers).
An important element in successful change and innovation is testing. The question is not about how innovative the franchise system is but how the franchisor tests and conducts change inside the network. Is the franchisee included in the process, aware of the advantages of the change and capable to put actions in place? Good ideas are always a result of teamwork.
Stay close to franchisee feedback.
A good franchisor will have systems in place to facilitate communication with its franchisees and manage creative thinking. Franchisees will have more contact with the final client and by consequence be able to identify market changes and potential innovations.
Some franchisors organize annual conferences, regional meetings or training sessions to share feedback. Online collaborative platforms with direct chat tools, group discussions and news feeds can also be used. Collaborative work will always benefit franchising networks and encourage franchisee participation in the whole system.
What can a franchisor expect from the redesign of his customer journey?
Redesigning the customer journey can often increase turnover by 30%. For most cases, it helps maintain the activity. The main goals for the franchisor are to reduce risks and to maintain franchisee engagement. The use of tools and seizing of opportunities for increased agility are the keys.
The franchisee will be able to replicate improved business models communicated by the franchisor and thereby increase sales, retain clients and better manage their teams.