Give your franchisees the comfort factor by
substantiating income projections for your territories
Whether your franchise is new, established or expanding,
potential franchisees want to know the methodology
used in creating your territories. In addition, the
provability of income projections for each territory or
outlet is a vital part of the franchise sales process.
It stands to reason: more facts = more comfort = higher
probability of sale to franchisee. However,
income projections are frequently based solely on sales figures
from another territory containing, say, x households or
y companies.
Such comparisons can be misleading as there is no
further breakdown as to the types of people actually
living in those households or the types and sizes of the
businesses operating there, or most importantly, where they can be found
in relation to the location of the franchisee. At best an educated
guess has been made based on past performance and
markets.
What is missing is the link between sales performance
(including recency, frequency and value) and territory geography.
Information such as the size and location of the
franchise or sales area, the numbers and types
of current and potential customers, and where such
customers are positioned spatially. Not all households or
businesses are your potential customers and many will never
have a need for your products or services or may be too
far away. Hence the need to establish the facts!
Gain clarity and certainty about your income
projections
This is best done by an in-depth analysis of your
customers, enquirers and sales figures in relation to
territory geography and the actual numbers of your
target market in a given area.
Such work can be carried out on information from an
existing business, a proof-of-concept or pilot franchise area, or
several
franchise territories. This exercise will not only
give provability of income projections to potential
franchisees, but also give you, the franchisor, detailed
insights into your business that are otherwise
difficult, if not impossible, to get any other way.
Find out more - call Tech4T on +44 (0)1733
890790
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What we can deliver...
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The
visualisation of your customers and
prospects geographically, classified in
multiple ways by value, type, venue,
salesperson ... whatever is relevant to your
business.
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A grading of
your customers, taking into account not just
sales value but also trading history (how
often and how frequently they buy), recency
of last purchase...
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Drive time
and catchment area analysis to determine how
far customers or franchisees travel to make
a sale.
-
 Assessment
of marketing channel effectiveness and what
brings in the sales leads. This is something
that is crucial to a new franchisee -
especially how far away they need to travel
to close the sale.
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An accurate
comparison of territory performance taking
into account drive times and actual market
potential in each territory; determine the
factors influencing sales in your best
performing territories. Is there higher
market potential in the first place? Are
prospects in closer concentrations
geographically? Is the road network good? Or
is the franchisee simply more dynamic than
others.
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Conversely, are any of these
factors hindering franchisees in poorly
performing territories?
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