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Technology is the backbone of a franchise business. It’s used in operations, marketing, payroll and more.
But for your business to thrive, it can’t be any technology. It needs to be good great technology.
In this post, I’m going to discuss three examples of technology used by today’s franchise systems, and how they benefit you as a franchisee.
1. CRM systems
Customer Relationship Management systems (or CRM) help franchisors keep track of everyone who interacts with the brand. This doesn’t only include customers at the franchisee level, it also includes people who request information on owning a franchise.
And, for you as a franchisee, a solid CRM system will help make you money.
For instance, your CRM system (when set up correctly) will help you make sure customers don’t fall through the cracks. . Reminders can be set to follow up with customers who haven’t yet purchased something from you in a while when you have a product or promotion that may be of interest to them.
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2. Email marketing software
I’m encouraged by the number of franchisors that are leveraging the power of email marketing. Because it’s that effective.
According to EMARKETER, “Roughly one in three US retail email list subscribers have purchased something from the brand whose emails they receive.”
So, as you do your franchise research, make sure you find out if email marketing is being used by the franchise system you’re considering purchasing and ask how effective it is.
3. Point of Sale systems
The Point of Sale (POS) system you’ll be using as a franchisee needs to be top shelf, especially if you end up becoming the owner of a food franchise or a retail franchise.
That’s because a good POS system will help you track what’s selling and what’s not, so you’ll be able to manage your inventory better.
It’s a known fact that retail franchisees who have a well-managed inventory increase their chances of profitability, as there are less things sitting on the shelf or the racks not selling. Similarly, in the case of a food franchise, good inventory management means less spoilage and ultimately, lower food costs.
Your Franchise Due Diligence Needs To Include Technology Questions
All things being equal, I’m going to assume you have some knowledge about the technology used by today’s companies, even if it just comes from being a customer.
But even if you don’t have a deep understanding about the technology businesses use, you still have the ability to ask smart questions. Here’s one you can ask your franchise development person at headquarters:
“Can you tell me about the technology you’re currently using and how it helps your franchisees?”
Note: When you ask this question, you’re not looking for specific brand names.
Instead, you’re looking for the type of technology being used, along with specifics on how it helps franchisees stay on top of things and make money.
But there’s more.
When you become serious about the franchise you’re investigating, you’ll be invited to visit franchise headquarters. That will be your chance to see the technology in action with your own two eyes. You’ll also likely have an opportunity to meet members of the IT department and ask them questions directly.
Finally, when you reach out to other franchisees in the system, you’ll be able to ask them about their own experience with the technology the franchisor uses.
In most cases, they’ll be open with you about things like the quality and reliability of the systems being used.
Just don’t forget to ask them if they feel that the technology the franchisor uses helps them run a successful franchise business.
Because in the end, that’s what it’s all about.
The Franchise King®, Joel Libava, is a top franchise expert. He’s written over 2,000 different articles on franchise ownership and personally consults with people who are looking to buy a profitable franchise. Go here to find out how The Franchise King® can help you become your own boss.