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Franchise analytic systems enable the franchisee/owner/operator to understand their location's sales, labor productivity, consumer purchasing patterns, and profitability. There is no longer a need to guess at what is happening within your franchise business, because through accurate, automated collection of data, franchisees/owners/operators can now make more informed decisions that will enhance their ability to grow, reduce costs and increase the efficiency of their businesses.
In this article we will discuss how franchise analytics can help you increase revenues and improve performance using the most user-friendly methods available.
What Are Franchise Analytics?
Franchise analytics is defined as a process of gathering, examining, and analyzing data from various franchise locations. With franchise analytics, Franchise business owners are able to gather vital data about a business to determine where profits are generated, as well as identify where unnecessary expense increases occur, and where to improve operations to allow for greater growth opportunities.
Additionally, Franchise Analytics assists Franchise Organizations in identifying their store's strengths and weaknesses, and also provides information on workforce efficiency at each of a Franchise's locations. By using Franchise Analytics, Franchisees will be making decisions based on data versus intuition.
The Value of Franchise Analytics
✔ By Providing One Underlying System to Show Both the Performance of Each Franchise Location
Rather than having to search for Spreadsheet documents, franchise analytics allows for the assessment of every franchise location on One screen, which gives easy access to all the statistics, and allows for Easy to see the data points.
✔ By Providing One Overall System to Collect Revenue of All Franchise Locations
Franchise analytics allows for the identification of best-selling products/services, as well as promotions and optimum sales times for sales opportunities.
✔ By Providing a Way to Reduce Costs of All Franchise Locations
Franchise analytics provide insight into your labor costs, inventory costs, and operating costs, allowing for the identification of any costs that are higher than necessary, enabling corrective action to be taken early.
✔ Franchise Analytics Provides the Information Necessary for Franchise Operators to Make Informed and Confident Decisions About Growth and Staffing, Marketing, and Budgeting
Franchise analytics allows franchise operators to understand the extent to which Standard Operating Procedures (SOPs) are being followed and to compare the results of each location against the brand standards of the franchisor.
Ways Franchise Analytics Generate More Revenue
1. High-Profit Products/Services Are Identified
Franchise analytics provide a visual representation of the contribution margin, the most frequently bought items, and those that do not sell very well.
From this information, a franchise operator can identify:
• High-Profit Product Promotion
• Identify Low-Performing Products for Removal
• Price Smart
2. Customer Behaviour Is Understood
Franchise analytics enable a franchise operator to evaluate their customers and their buying habits, including:
• Trends of Purchase
• How Often Customers Purchase
• Average Order Value (AOV)
With this information, the franchise operator can personalize a promotional email to their customers based on their individual buying habits, improve the customer experience by addressing their needs, and increase the repeat business of customers.
3. Marketing Campaigns Are Now Optimized
With the aid of the data compiled from franchise analytics, franchise operators no longer need to guess as to which marketing campaigns are working; the franchise analytics reports will show:
• The Marketing Campaigns With The Highest Return on Investment (ROI)
4. Increase Speed & Quality of Service
The use of Analytics provides insights that eliminate bottlenecks in the operation—like slow service during Peak Hours or other times, understaffed shifts or under-utilised workforce, or other operational inefficiencies.
The better the service, the more pleased the customer, and thus more sales and revenue.
The Benefits Franchise Analytics Provides to Improve Performance
1. Labour Management Optimisation
Labour costs are among the highest operating expenses in any franchise. The use of Analytics provides the following capabilities:
• Forecasting staffing needs
• Eliminating Overtime Cost
• Improving Scheduling
• Tracking Staff Performance
2. Smarter Inventory & Supply Chain Management
Use analytics to identify seasonal demand, predictable waste patterns, and supplier performance to avoid stockouts, minimise waste, and optimise ordering processes.
3. Benchmarking Across All Locations
Use analytics to assess unit performance. This includes identifying the top-performing units, identifying struggling units, and developing action plans based on actual performance metrics.
4. Financial Metrics for Assessing Financial Performance
Use financial analytics to track profit and loss statements, cash flow, cost of goods sold ratios, and profitability responsibilities on a per unit or as part of the entire franchise system.
This enables franchisees to maintain financial control and optimise profitability.
The Role of Automation in Franchise Analytics
With the growing need to automate many processes in modern franchise systems, Tools such as (Autymate) and others can assist with the following:
• Connecting Data Sources, Such as POS Systems, Payroll Systems, Accounting Systems, Inventory Systems, for Automated Reporting
• Removing Manual Reporting Errors
• Providing Real-Time Data Dashboard
• Providing Alerts When Data/Fraud are Detected
• Creating Accurate Financial Reports by Creating Accurate Records Instantly
Automation not only saves time and eliminates guesswork but also provides consistent and reliable data across all franchise locations.
Final Thoughts
As a result of Franchise Analytics, growth is no longer just an option. Franchise owners have become reliant upon franchise analytics as the foundation for understanding trends in franchise performance, tracking revenue sources, and using accurate information to optimize their overall operations.
By using technology that automates assessment and provides immediate access to real-time information, such as signing up for a free trial of Autymate, franchise owners can operate in a more effective manner, reduce the cost of operations, and develop additional sources of revenue.
Data-driven decisions improve the performance of every franchise location, resulting in the overall strength of the franchise system.
