franchising aspects Aug, 17 2012

Steering success through franchisees

A successful franchise system calls for profitable franchisees. Franchisees’ success is franchisor’s responsibility. Franchisor need to take each and every effort to make his franchisees profitable. Learn how

By Abha Garyali
Sub Editor
Steering success through franchisees

The success of any franchise system can be estimated from the success of its franchisees. Profits making franchisees indicate a successful and profitable franchise system. A franchisee can be called successful if the walk-ins and selling power is high in the outlet. The performance of each and every store ultimately adds to the nationwide expansion of the brand. However, a failure or a shutdown of even a single franchisee can have an adverse impact on the reputation of the entire brand. Hence it is of utmost importance that the franchisor and his franchise team works on improving the profitability of all franchise units.

Develop cordial relations

Developing personal relationships is the simplest, most inexpensive and most effective way for a successful franchise network. It is not only important that the franchisor has good relations with franchisees but it is equally essential for franchisees to share a personal relation with his customers. However, besides having good relations there are few other guidelines for developing a successful franchise network.

Dealing with franchisees

A franchisor needs to understand that the franchisees are the backbone of his entire franchise network. Even a single franchisee breaking up can lead to the down fall of the whole network. Therefore franchisors should develop strategies to maintain as well as hook new franchisees to his network. Few of the various ways are as mentioned below:

Enhance technological systems: Being the jet age new technological developments are coming up regularly. Franchisors that adopt these and add them in their franchise units would be comparatively more successful as well as more respected by franchisees than franchisors who stick to old ways only. Latest technological inventions are developed to boost sales of the franchisees, therefore this need to be implemented immediately.

Develop social media programs: Franchisors should develop social media programs for the benefit of their franchisees. Maximum potential clients and customers get information about the brand and its services through social networking. So franchisors should provide knowledge about social networking to his franchisees for maximum benefits.

Traditional advertising and marketing techniquesOld is gold. This is yet again proved by the traditional ways of advertising, which are still very effective. Thus franchisors should also market their franchisees’ outlets via the old yet effective advertising ways.

Make strong PR: Having a strong PR is important for the success of a franchise brand. Franchisors should understand this and educate franchisees to make good PR contacts for gaining maximum benefits.

Have monthly webinars: Franchisors ought to discuss local store marketing practices on monthly webinars. It is important to have company-wide webinars to update the franchise system on what's going on in each department. Through web seminars all franchisees can also have the spotlight for 5 to 10 minutes to share successful marketing ideas and stories. There is more credibility when the whole team shares with each other.

Treating customers

For reaching out to nationwide customers, franchisors can help franchisees by educating them to develop personal relations with them. Here are few methods for staying in contact with customers:

Email marketing: Mostly all companies send email blasts to their partners as well as potential partners but brands should keep in contact with their loyal customers via Email marketing. A wide data base aids in communicating the news and other deals to nationwide customers as well.

Interaction via social websites: Efficient franchisors should be aware of the benefits of social media and should use the social media channels to communicate with their clients and fans and find out what they are thinking, as well as to engage in conversations with them.

Initiate ‘Miss You Campaigns’: Good franchisors should focus on ‘lost’ customers (customers who haven't been back in 90 days) with ‘We Miss You Campaign,’ where some attractive offers and rewards are announced to get them to come back.

Open to complaints: It should be a weekly activity that the franchisor sits with his team to discuss the weekly complaints that have come through franchisees as well as clients/ customers. Moreover, franchisor should make sure to follow up with the customers within limited times.

To wrap up it can be said, that franchisors, franchisees and customers together construct a successful franchise system. However, franchisor being the owner of the brand has to try the hardest to make his brand a success.

Related: Cherish Your Dream to Be an Entrepreneur

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