Franchise business is booming, some franchises proliferating virtually overnight: In 2015, Orangetheory Fitness training, led by CEO Dave Long, gained popularity with a three-year growth rate of 1,147 percent. Splash and Dash for Dogs International, led by CEO Dan J. Barton, sells unlimited dog washing and brushing services, had a three-year growth rate of 1,550 percent; while Sky Zone indoor trampoline park led by CEO Jeff Platt, jumped 1,674 percent in three years. The top-growing franchise of 2015, TITLE Boxing Club, has more than 150 locations increasing its growth 1,774 percent. (Source: Inc.) Accurate and timely franchise data can be the difference in being the front-runner, or becoming a distant memory -- As business booms, gathering data from a centralized POS system can help you keep up with your growth.
Marketing Campaign Data: Knowing whether a national marketing campaign is successful or not is measured at the register. Gathering sales data in real-time identifies the ROI on your marketing dollars; and in turn helps determine your next marketing splurge (or not). Happy hour promotions may be an effective push in Portland; but fails miserably in the suburbs where parents rush home to their families. Creating marketing plans based on your data will put your marketing dollars to good use.
Purchasing Data: Purchasing data helps alleviate supply chain headaches such as unexpected surges in demand, or an overabundance of perishables. Recognizing the surges and deciphering the reasons for the surges can help you plan. Sporting events, season openers, high school recitals, weather changes, local trends, social media, all have impact on supply and demand. Data trending your purchasing information will improve supply chain management.
Pricing: Pricing is a science, and accurate POS data gives you the strategic edge to up your profits each quarter. The magic number for getting new doggie-washing services in Phoenix may be $59 when the snowbirds are in town; but during the heat of summer, this number may need to drop $49 for households who don’t spend as much on their pets. Data trending for strategic pricing can change next quarter’s revenue reports.
Product Demand and Demographics: Data collection services that provide an overview of multiple (or all) franchise units simultaneously can give you an invaluable understanding of your demographics. For example, looking at popularity and margin, helps you better understand your demographics -- The greater a market is willing to pay for a certain product or services can define future offerings. Pulling undervalued products, and increasing high-demand items can help your franchisees reach their full potential.