Research conducted by Forbes shows that the right technology can boost a business’s profits by up to 38%, while the wrong technology can reduce profits by as much as 24%. As a franchisor, you need to make sure that you’re taking advantage of the latest technology to help your business see growth quickly.
In this guide, types of technologies franchises must embrace to see growth, benefits of technology in franchising, a list of considerations for adopting new technology, and best practices for franchisors to adoption of technology are discussed.
Types of Technologies Franchises Must Embrace to See Growth
Franchisors should think about the various types of technologies they could adopt to benefit their business. Here is a quick overview of some of the types of technologies that can help franchisors see greater growth:
1.Automation Technology
Automation technology such as bots and workflow systems can help improve efficiency across the entire franchise system. Automation can help franchisors streamline processes such as onboarding, invoicing, and customer service, allowing them to focus on larger growth strategies instead of spending their time performing basic tasks.
2.Digital Marketing Technology
Franchises can also adopt digital marketing technologies to help promote their brand online. Social media, email, and search engine advertising are all great ways to build relationships with customers, drive brand recognition, and ultimately boost sales.
3.Analytics Technology
Analytics technology is an important tool for any franchise system. With analytics, franchisors can track customer behavior, location data, and product usage, giving them insight into what works and what doesn’t. This information can be invaluable for making data-driven decisions.
4.E-commerce Technology
E-commerce technology is essential for any franchise system that wants to offer its products and services online. This technology can help you build an e-commerce platform, create customized product pages, accept payments securely, and manage customer data.
5.Mobile Technology
Mobile technology can help franchisors further engage with their customers. Developing a mobile app can allow your customers to access your services more easily, stay updated on offers, and manage their accounts.
6.AR/VR Technology
AR/VR technology can help franchises create immersive experiences for their customers. This technology can be used to give customers a unique insight into your products and services, helping create more meaningful connections.
Benefits of Technology in Franchising
There are a number of benefits that franchisors can get from embracing technology. Here is a list of just a few of the advantages that franchises can expect to see from technology:
1.Increased Efficiency
Automation technology can help you streamline processes and save time, enabling you to focus more on core business activities.
2.Improved Customer Retention
AR/VR technology, mobile technology, and other tools, can help franchises keep customers engaged and increase customer loyalty.
3.More Productive Employees
Analytics technology can help franchisors analyze employee performance, allowing them to see where employees are most productive and make improvements.
4.Better Decision Making
Analytics technology can help you make data-driven decisions, giving you the ability to maximize profits while minimizing risks.
5.Higher ROI
By embracing technology, franchisors can reach customers in new ways and convert leads more effectively, leading to a much higher return on investment.
Considerations for Adopting New Technology
When adopting new technology, there are a few important considerations that franchisors must keep in mind:
1.Cost
One of the most important things to consider is the cost of the technology. Franchisors must weigh the cost of the technology with the likely cost savings that it will provide.
2.Training
Before you adopt any technology, you think about the time and cost associated with training your employees. Training your employees on the technology you choose can help ensure that it is used effectively.
3.Data Security
For any technology that handles customer data, it is important to think about data security. Make sure that you invest in the necessary security measures to protect customer data.
4.Scalability
When adopting new technology, you should consider whether it is capable of meeting your future needs. If the technology isn’t scalable, it may not be able to grow with your franchise.
Best Practices for Franchisors to Adoption of Technology
Once you have decided to adopt new technology, it is important to take the right steps to ensure success. Here are a few best practices that franchisors should follow:
1.Create Strategic Plan
Choosing the right technology is only the beginning. It is important to create a strategic plan to ensure that the technology is implemented correctly.
2.Engage with Vendors
Franchisors should make sure to engage with the vendors supplying the technology to ensure that it is installed correctly and functioning properly.
3.Continuously Monitor Performance
Franchisors should make sure to continuously monitor the performance of their technology. This will help you identify areas where improvement is needed.
4.Collect Feedback
Collecting feedback from your employees and customers can be invaluable in helping you optimize your use of the technology.
5.Regularly Upgrade
Finally, make sure to keep up with the latest upgrades and improvements to the technology. This will help you ensure that the technology is always performing at its best.
Technology is essential for any franchise system that wants to have success in today’s competitive marketplace. By embracing technology, franchisors can increase efficiency, improve customer retention, and make more informed decisions. The key is to take the time to select the right technology and implement it correctly. By following the best practices outlined above, franchisors can make sure that their technology is used effectively and is capable of meeting their future needs.