Franchise businesses rely on technology for a variety of things, including operations, payroll, marketing, and more. But the technology you use has to be great if you want to succeed in your business.
In this article, we will look at three examples of technology commonly used by franchise systems today and how they help you as a franchise owner.
1. CRM systems
Customer Relationship Management systems, also known as CRM, allow franchisors to monitor people who interact with their brand. This includes the customers of their franchisees and those who are looking to open a franchise.
As for you, the franchise owner, a good CRM system will enable you to make profits.
When properly set up, a CRM system can prevent you from losing customers. You can set reminders to reach out to customers who have not patronized you for a long time when you have a new product or promotion that may interest them.
2. Email marketing software
Many franchisors today are using email marketing because of its effectiveness.
According to a popular market research firm called emarketer, nearly 1 out of 3 people who subscribed to the email list of US retail companies have bought something from brands who collect their emails.
So, while researching a franchise, you need to find out if the franchise system you are interested in uses email marketing and ask how well it works for them.
3. Point of Sale systems
A top-class POS (point of sale) system is a necessity, especially if you are planning to open a retail or restaurant franchise.
This is because having a great POS system will allow you to monitor what your customers are buying and what they are not so that you can manage your inventory effectively.
Retail franchisees are likely to make more profits when they manage their inventory wisely, as they won’t have many non-selling items on their shelf. For a restaurant franchise, effective inventory management will reduce the chances of food spoilage and eventually lower expenses on food.
Your Franchise Due Diligence should include questions about technology
We are going to assume that you at least have an idea of the technology today’s franchise companies are using, even if it’s just from your experience as a customer. But if you don’t, you can still ask intelligent questions to gain a deep understanding of the technology that businesses use. Here is a good example of questions you may ask your franchise development person at their main office:
“What technology are you presently using and how does it help your franchisees?
With this question, you are not trying to find out particular brand names of the technology being used. You are only interested in knowing the type of technology that is being used and how it enables franchisees to manage things and rake in profits.
There’s one more thing
When you show great interest in the franchise you are researching, you will be asked to come to the franchise’s main branch. This will give you the opportunity to have a real-life experience of how the technology works. You may also have the chance to talk to the IT staff and ask them any questions you may have.
Lastly, when you contact other franchise owners in the same system, you will have the chance to ask them about their personal experiences regarding the technology the parent company uses.
Most of them will be honest with you about things like the reliability and quality of the systems they are using.
Remember to ask other franchisees if they think that the franchisor’s technology helps them operate their business successfully. Because that’s what you are actually trying to find out.
