“The pace of change has never been this fast, yet it will never be this slow again.” This quote from Canadian Prime Minister, Pierre Trudeau, at the World Economic Forum in 2018, is arguably even more pertinent today than it was five years ago.
Any business that doesn’t keep up with the dramatic pace of change is in danger of being left behind. Digital transformation is one of the areas that is currently separating companies that are on the march from those treading water. This is as relevant for franchise organisations as it is for any other kind of business. Even more so, perhaps, bearing in mind the requirement for seamless communication across any number of branches and the constant need to deliver exceptional customer experiences. Digital transformation also provides a huge opportunity to leverage digital tools and strategies that will help keep franchises competitive and drive growth.
From adopting cloud-based systems and streamlining operations to harnessing the power of data analytics and online marketing, this blog will explore digital transformation opportunities for UK franchise businesses. We’ll take a closer look at the benefits, assess the advantage of running a franchise pilot scheme and see who’s already using the new technologies to the best advantage.
Tangible benefits of digital transformation
One of the key benefits of digital transformation is being able to run a more efficient organisation. Franchises can reduce costs and increase performance by automating basic, but time-consuming tasks, such as processing payments and staff scheduling. Of course, saving on labour costs in this way allows franchise businesses to invest in other high-priority areas instead.
Equally compelling, once all your data becomes digitised, you will then be in a position to use data analysis to improve your decision-making with the help of better insight as to what’s working for your business and what isn’t.
Your customers will also appreciate the benefits that come from your franchise organisation embracing the latest technologies. In fact, if you can’t provide them with those benefits, they’ll find someone else who can.
These days, customers have higher expectations than ever before, and they’re well used to seamless purchasing and communications, with highly personalised experiences. The bonus for franchises that can provide a higher level of service is that it’s likely to keep your customers loyal.
Digital transformation is also important for franchises with the need for the best possible collaboration and communication between the Head office and the network. With the help of cloud-based tools, information can be shared and processes can be streamlined.
Dipping your toe in the water
The beauty of running a franchise is that it gives you the opportunity to test things out in a small number of stores or branches before you commit to wholesale changes. Run a pilot and you’ll soon know the best way forward. It will also give you the chance to make refinements to the system before you commit to a major investment.
The structure of your franchise will determine how you set about a pilot scheme. If you have your own stores or branches within the network, then it’s a no-brainer to test the new technologies in those outlets. Doing it this way will make it an easy sell to franchisees as soon as you have practical evidence of success.
If there aren’t any branches owned by the franchise operator, then an early adopter scheme would be a good way to instigate a trial. To make the trial compelling for the network, when the time comes, you’ll need to ensure that various branches participate. Otherwise, some franchisees may not think the trial results apply to them.
This whole process needs to be completely transparent to gain the trust of the network. You should be completely honest about the difficulties involved with the changes, the benefits that ensue and the true costs.
In terms of the costs, there might be some education and clarification needed. For example, your franchisees need to understand the difference between a software fee, which provides access to a platform and a more generalised technology fund fee, which is usually based on gross revenue and covers the development of technology initiatives to give the franchise the edge in the marketplace. The extra cost is never welcomed, but a clear understanding of the benefits that will ensue from digital transformation makes it a much easier sell.
Like redecorating the house, digital transformation is great when it’s done, but the transition can be expensive and cause a certain amount of upheaval. But it should always be worth that extra investment of time, money and effort.
Digital transformation in action
Not surprisingly, some of the high-profile global giants within the world of franchising have been blazing a trail with digital transformation for some time now.
McDonald’s now offers customers mobile ordering, self-order kiosks, and delivery partnerships with the likes of Uber Eats. While Anytime Fitness uses a digital platform that allows members to track their workouts, connect with personal trainers and create an individual wellness plan.
Here at Swimtime, the UK’s largest independent swim school, we’ve been winning awards for our industry-leading SwimCloud solution. This bespoke software was developed together with our technology partners, Franscape.
SwimCloud automates many aspects of running a Swimtime franchise using highly sophisticated, cutting-edge technology to offer more efficient processes for our franchisees and better experiences for our customers.
It enables our franchisees to work from anywhere in the world and enjoy an enviable work-life balance. Suddenly, life seems a whole lot easier. Customers can book lessons any time, day or night, in as little as 60 seconds.
The system issues labour-saving automated customer communication, incorporates powerful marketing tools and helps to ensure Health and Safety compliance. Most important of all, it also continues to give us the edge over our leading rivals.
Onwards and upwards
Digital transformation is no longer a nice to have. Those days are gone. In the current ultra-competitive environment, having the right technologies in place is every bit as important as having the right people on the team.
Once you’ve rolled out new digital technologies across your network, aligned your internal systems, achieved a consistent online presence and harnessed the power of data, you’ll never look back.
