Franchising Success: Key Ways Data Analytics Can Boost Your Franchise Revenue


This is a tale of two franchises: one who paid attention to the importance of collecting data on their customers, and one who didn’t. Surprisingly, both were likely a part of your average Saturday night back in the 1990’s. After you’d picked out your due back by Sunday at midnight movies at Blockbuster video, you might have picked up the phone and ordered a large with two toppings pizzas from Dominos and settled in for the late 20th century version of modern-day “Netflix and chill.” As we leave this fun flashback and return to 2021, it’s clear that one of these businesses survived the years stronger than ever, and one doesn’t exist anymore. Can you guess which one took advantage of big data to evolve with their customers?

Sure, the argument could be made that while pizza is always in style, streaming services and more readily available online content is what caused Blockbuster stores to be rendered obsolete. However, that would be discounting the savvy actions of Domino’s and their many franchises, who expanded their offerings and service model to weather the changing times and incorporate the varying demands of their clientele. And it was through collecting and analyzing data on their clients and locations that they were able to flex rather then fold.

Using a variety of data gathering tactics that included customer surveys, focus groups, order tracking data, competitor tracking, and even regional dining trends just to name a few, Domino’s was able to use the provided feedback to garner a more solid, deeper understanding of who their clientele was, where they were located, and what they wanted from their pizza delivery service.

The effort paid off, putting Domino’s back on the top of the pizza food chain, where they fully intend to stay through the continued use of big data analytics. By taking the insight that data provides, Domino’s can fully support their franchisees throughout the country.

Why Big Data is Necessary for Franchise Survival

Data is a catalyst for decision making and without the useful information it provides, it can be hard to measure, analyze, and understand which of your marketing and engagements efforts to is working and what’s not. Without the intelligence that data provides, this can be especially difficult. Franchises often rely on a corporate office located elsewhere to provide them with insight into how to market their business that may not pertain to local satellite stores.

Franchises can also leverage big data to find ways to improve in or capitalize on a variety of established KPIs. Analyzing both existing and real-time data can help franchisees determine where to cut corners and where to expand efforts. This is instrumental when it comes to planning and budgeting.

Data analysis can also help franchises identify broader issues that are presenting a problem across the entire franchise spectrum and provide them with the information needed to address and correct a hiccup quickly.

Data Can Manage a Stronger Work Force

Data can provide significant insight into franchise workforce needs. Using demographic and population data, new franchisees can look to other stores in areas with a similar population make-up and use that data to know how many new hires they will need to make, when to staff them, and for how long. Additionally, paying attention to trends in customer traffic can help inform scheduling needs so a new franchise can ensure they are staffed appropriately to provide maximum customer service.

Data Can Drive Inventory Needs

Data can be an extremely useful tool when used to predict potential inventory needs. Consider the following: a new regional franchise hardware store located 5 miles from the waterfront of a busy lakefront has been open for the past three months but has been noticing a lull in customer traffic since spring began. Managers have also reported that shoppers who do come in often leave within the first five minutes without making a purchase.

Corporate franchisors can take that feedback and use data to research other similarly situated locations. They’re data tells them that the other stores located near a waterfront sell some basic fishing and water sports equipment when the weather turns warmer, and that this inventory is a significant part of their sales during the spring and summer months. This information can then inform the franchise location’s inventory and allow them to capitalize on already tried and true models of success.

Data Can Drive Successful Customer Incentives

Another highly informative use of franchise data? What marketing efforts have resulted in higher store traffic and stronger sales, and what campaigns have fallen flat. Let’s say you’re a regional supermarket franchise who has recently launched a customer coupon app. Franchisees who’ve been using the app since it’s launch can help inform new stores of which coupons had the highest usage numbers and which provided little to no needle movement. Additionally, existing franchise data can help new stores figure out which promotional campaign yielded the most downloads of and engagements with the app, which will help the newest member of the franchise start out strong right out of the gate.

Using big data to bolster the overall health and success of the franchise spectrum provides each new satellite with a stronger foundation for launch, shortens the trial-and-error period, and strengthens the overall franchise brand. Conversely, using big data to analyze a new store’s success can help an older franchise that is stagnating receive an injection of new life and a fresh perspective. Data provides the needed insight to ensure overall franchise success. Book a demo, today!