Data is at the core of every franchise operation, whether that’s location-based, order-based or customer-based information. In fact, most forward-thinking franchises have been collecting, storing and possibly analyzing a ton of data.
In the past, however, franchises had no tools and expertise to help them process their data and gain insights. Some were not even aware of the importance of the data in their hands. They had no idea what to do with the data they had gathered.
Big Data and Business Analytics
You don’t have to look hard to see that big data is almost ubiquitous these days. And it would be shameful for franchises to ignore data that could be useful to them and could make a huge difference in their success.
Let's take a look into the various ways smart franchises are using data and the how big data analytics can benefit franchises.
What is Big Data?
Big data refers to all structured data sets or information gathered by franchises through various sources. It is processed in such a way that makes data more accessible, easy to mass-produce, and beneficial to several aspects of the company.
For instance, big data allows companies to collect data, analyze it and generate insights that can help with marketing, branding, restructuring, expansion, and overall decision-making.
How is Big Data Being Used by Franchises?
Not all franchise owners are the same. Some have innate business acuity that helps them propel their units to profitability and success quickly. However, some franchise owners need a little help.
That’s where data analytics comes in handy for the franchisor. With big data, the franchise can analyze available sales and performance data to rank franchisees.
Franchisees can be ordered from the best-performing to least. The ranking criteria should consider several metrics and factors. But why rank franchisees?
Rank gives the franchisor a glimpse into where a particular franchise owner is compared to other franchisees in the system as far as performance is concerned.
Ranking allows the company to see who needs more training, support and help in general. More importantly, ranking helps make the top performers feel inspired to do more of what they are doing right. Those who need improvement can take the opportunity to learn from the best.
Ways to Improve
Some franchises leverage big data to figure out ways to improve. They query their existing and real-time data to figure out how they can become better operators. This is instrumental when it comes to planning and budgeting.
Data audits also help franchises determine the best course of action to improve efficiency and performance across the franchise spectrum. After all, it’s one thing to execute an audit, but it is more fruitful to utilize the findings and take action.
SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is the ultimate way to have a holistic view of a franchise. In today’s complex business environment, however, you cannot do a SWOT analysis without big data.
Smart franchises are taking advantage of data to learn more about their strengths. These areas can push their franchisees and gain an added competitive advantage.
They can also zero in on their weaknesses and threats. By learning about those two aspects of their businesses, franchises can put necessary measures in place to prevent potential problems.
Every franchise can benefit from knowing which areas provide an opportunity. Big data can reveal those areas and can help take the franchise to the next level.
Conduct Market Checks
Businesses should keep on top of the latest trends in their industry. Big data and business analytics help franchises assess and understand current market conditions. With data analytics, they can get a deeper understanding of consumer purchase behaviors, manufacturing trends, and marketing best practices.
Real-time analytics allow franchises to avoid costly mistakes and cut unnecessary costs. For instance, big data can be used to pinpoint marketing and sales campaigns that delivered or didn't deliver in terms of ROI.
Big data analytics is a great tool for franchise companies when it comes to understanding customer perception, staying on top of market trends, and reducing operational costs.