The franchise industry has had a seemingly paradoxical relationship with Big Data. Franchises have the potential capture massive amounts of data on a daily basis, but as an industry, they have been slow to make this data actionable. However, the benefits of a Big Data solution are beginning to be understood and new technology has made implementation much more cost effective than it had been in the past.

Franchises have the capability to capture incredible amounts of data. In recent years, franchisors have begun to understand the importance of an end-to-end data solution. Big Data can increase traffic, increase customer loyalty, and improve operational efficiency. It is only a matter of time before a Big Data solution is no longer optional for a franchise if it wishes to remain competitive.

Franchise User Stories

Franchises are finding Big Data to be useful in customer acquisition and retention. Programmatic digital display advertising and retargeting improve lead generation. Customer satisfaction services give consumers the ability to provide feedback about the product or service they received. This feedback can be aggregated and analyzed to understand brand sentiment across an entire franchise and at the individual franchise store level. With Big Data, franchises can incentivize customer loyalty by providing free Wi-Fi that integrates with an email-marketing platform. Analytical solutions are often coupled with reporting and measurement tools, which put actionable data in the hands of key decision makers.

There are hundreds of key performance indicators (KPIs) for franchises to monitor, however, some are more important than others. Simply tracking KPIs is not enough to improve operational efficiency or gain a competitive advantage. A franchise must compare and analyze multiple KPIs in the correct context

Example: Let’s assume that an individual is analyzing profit margins by product and realizes that Product A is unprofitable (its cost is more than its sales value). With this information one may decide to stop selling Product A. However, upon further analysis one may discover that they are buying one product from two distributors and one of the distributors is overcharging.

Without a proper Big Data solution, this type of analysis would never be possible. Franchises that lack the ability to analyze their KPIs are in danger of losing their competitive advantage and becoming irrelevant in the highly competitive franchise industry.

Franschise Use Cases

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