Technology is changing the competitive landscape for all types of businesses, and everyone is constantly gaining access to new technological opportunities.
Similarly, technology serves as the foundation of a franchise operation. It is used in a variety of applications including operations, marketing, and payroll.
Today, franchising is evolving at the same rate as technology. Nearly every aspect of franchise operations now incorporates technology, allowing owners to track trends, train employees, learn, market to customers, and increase sales.
In the coming year, the use of technology in franchising will continue to advance as the industry becomes more sophisticated and competitive.
The franchisor provides a comprehensive, resilient, and clear path to operational excellence, which drives profitability and protects brand standards.
The need for a strong technology stack that supports the dynamic nature of the franchisor-franchisee relationship in the face of an ever-changing and highly complex operating environment is at the heart of this.
However, franchises are looking for technology solutions for a variety of practical reasons. They might want to, for example:
- Reduce operating costs by streamlining processes and integrating data and systems across the organisation and within individual franchises.
- Using business intelligence (BI) dashboards, you can analyse franchisee performance and make more informed future decisions with more accurate forecasting.
- CRM and related systems can be used to improve customer experience with the brand.
- Use social media and customer-generated content to your advantage for marketing.
- Improve communication documentation for legal and regulatory purposes.
- Automate customer payment systems as well as royalty payments to the franchisor.
Now you may wonder, what is the need for all this? And to that, we give you the answer-
1. Creating Efficiency With AI
Software now frequently tracks inventory levels for franchisees via mobile Bluetooth devices and automatically files reorder requests for franchise owners.
Machine learning provides franchise owners with real-time information on customer spending habits and uses predictive analytics to predict the most likely next purchase consumers will make.
2. Automation of SMS Marketing Increases Revenue.
Sending a personalised text message to customers about an upcoming sale or new product arrival is more immediate and cost-effective than posting flyers on cars or mailing out coupons in bulk.
There are services that automate and simplify the text-messaging process. SMS marketing is quickly becoming franchisees’ best friend in an age when our email inboxes are overflowing.
3. Delivery Apps and Online Orders Grow Markets
The rise of Swiggy, Zomato, and their competitors, particularly in the popular food franchising sector, has created opportunities to easily increase sales without the burden of leasing and paying for a larger space.
Customers will have more opportunities to order goods simply by using their devices, which will notify their local franchise operators to ship the items.
4. Digital Payments Speed Sales
Many national full-service dining chains already have terminals that allow diners to pay for meals at the table, resulting in faster turnover and higher profits.
As a result, more franchise chains accepting digital wallet payments, such as PayTM and GPay, should be sought after.
The days of paying for our purchases at our favourite franchise store with a quick swipe of our phone reader are over.
5. Loyalty Programs Grow Up
AI is enhancing loyalty programmes by using purchase data to tailor rewards to individual preferences. Machine learning enables franchise owners to segment customers and creates different rewards for different customer types, so one loyalty programme no longer has to fit all.
1. Using a CRM
You will have complete control over the items or services purchased with the help of a CRM programme, which means you will always know what your franchisees are selling and can ensure that each location maintains the same level of integrity and appeal.
2. Barcode Readers
Any franchisee can use a barcode reader to ensure that products are sold correctly and that no human errors occur, whether those errors involve pricing, the number of products sold, or any other number of factors. This results in less loss and increased production value for both the franchisee and the franchisor.
A franchisor can exert complete control over the area surrounding any of its franchisee locations by utilising video cameras and security systems.
Investing in security equipment is critical for any franchisee or franchisor, and the results will be nothing short of spectacular.
Accounting can, of course, be done the old-fashioned way, but it takes a long time and is prone to human error, which can lead to losses and other problems.
Accounting software for mobile phones and laptops makes performing finance-related actions easier and faster, allowing franchisors and franchisees to have a real-time overview of their company’s finances.
Consumers’ perceptions of franchises as cookie-cutter businesses out of touch with local needs will be changed by technology.
Also, a well-drafted, thoroughly examined Franchise Agreement can Protect a franchisor from adverse technology changes.
The best franchise businesseswill seize the opportunity provided by technology, which provides detailed local intelligence and enables stronger customer relationships through more personalized interactions.
By Swatejas R: a franchise business consultant and a market researcher at Sparkleminds who is specializing in franchise business expansion.
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Along with strategic planning and developing new business growth models, he helped several businesses to lay strong franchise foundations. Apart from this, he is interested in movies and biking.