Franchise organizations today are faced with a serious challenge, to produce more with less. How does your organization manage this issue? Don’t worry, it’s a rhetorical question, one to get the wheels turning. I am sharing 5 strategies below that I have regularly encountered over the years from listening to clients and mapping my own territories.
1. Define your Territories Before they are Sold.
This may seem easier said than done but there is nothing worse that knowing you could have squeezed more franchise territories into a market than you did. A market that can handle 3 territories but only contains 2 is a major revenue loss. By proactively creating accurately defined territories, i.e.: 50,000 Owner Occupied Housing Units, you not only portray confidence in a territory’s success based on a standard benchmark, but you also create a demand. If you can create just 1 additional territory to maximize revenue, you win.
2. Utilize the Most Current Internal and External Data.
In today’s economy, many major markets are in constant flux so make sure you have access to reliable, up-to-date data. There are multiple sources for updated Census Demographics and Business Data that can prove invaluable to making sure your sites or territories are located effectively to generate expected profits. You likely have internal company data, such as revenue by zip or customer sales data that can help predict future results. Make sure you use it.
3. Do Your Own Site Research.
Many Franchise owners count on their brokers to provide site reports around locations they are proposing to you. Brokers often have access to demographic data and mapping services but do you know how up-to-date it is? Isn’t your broker trying to sell or lease a property and make a commission? The cost for choosing the wrong location can cost more than lost sales from that location, and it is a strike against you when other franchise prospects inquire about the success of your concept.
4. Create Territories by Utilizing Specific Geographies.
Territories that are defined by specific geographies, such as ZIP codes, counties, or standard Census boundaries are much easier to control and gauge. Data is almost always tied to specific geographic areas and it is much easier to manage expectations with the demographic make-up of those territories. Territories defined by a set of landmarks, like highways and rivers are much more difficult to measure and therefore very challenging to predict success.
5. Maintain Easy Access to Data.
With so many tools and resources available to us keeping things organized is extremely important. When it comes to territory data and demographic data it is critical to have easy access to it. If a potential franchise prospect wants to see a breakdown of the territory under consideration you should be in a position to provide it within minutes. This not only saves you valuable time putting it all together but it decreases the possibility for the prospect to continue shopping elsewhere. Data should be easily accessible and transferable which makes it much easier for the client to access it on the other end.
GeoMetrx.com is a powerful web-application that will allow you to apply the 5 strategies above. For more information please contact Rich @ 888.848.4436 x4, go to www.geometrx.com or request a demonstration/free trial — Click Here