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Franchisees Need Big-Data Boost
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Re: Location location
  • 1/31/2014 9:56:33 PM
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There tends to be a finger pointed at the corporation. I know McDonald's years ago had disappointed franchise owners by expanding too much and having store compete against each other. This was at least a decade ago.  

I do think now they have focused more on upgrading stores, making them more friendly to stay and eat - that has been a shift thanks to consumers looking for wifi, less emphasis on the "playground" at the front of the store, and more competitive inroads from other casual dining chains.  But it may be a bit for franchisees to get really into the data game and leverage other ways to be competitive.

Re: Location location
  • 3/21/2013 11:26:23 AM
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Great question.  I wish I had an answer for all, for my part - yes!  All I'm saying is that there is real opportunity here.  You still have to work for it.  :)

Re: Location location
  • 3/21/2013 9:17:52 AM
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Hi Kickeko. You've raised a great point. If a franchisee loses more tha 4 percent of customers in the year following a new shop's opening nearby, does the franchisee point the finger of blame at the corporation, blaming over expansion? Or is it able to weigh in other factors -- poor service, economic decline, weather trends, style trends, etc. -- that influence visits to a hair salon? I think this is an interesting challenge on both ends of the decision making.

Re: Location location
  • 3/21/2013 8:58:31 AM
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One thing i wonder is how often cases arise where you have the data but still the outside parties to it are not exactly convinced. like in this case what if some of the franchisees are not convinced tht all they are likely to lose in a year is about 4 percent. I'm not saying they would challenge such results but they could doubt unless there's a clear way of showing relationship between the variables and the situation at hand. Maybe data visualization solves this but sometimes it gets complex also... i see necessity to train the proprietors in understanding analytics.

Re: Location location
  • 3/21/2013 7:37:02 AM
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Just because we have access to information, are we willing to use it?

Re: Location location
  • 3/20/2013 12:11:45 PM
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This is not nearly as complex as it once was.  All the GIS and coordinate data and even the mapping comes standard with many database packages now.  I think this is a really timely article not just for franchisees but for many SMBs, 'big' data for them is definitely within reach.  They just need to know who to talk too.  (i.e. us.)

 

Re: Location location
  • 3/20/2013 11:13:14 AM
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There are several sites that take the pain out of location selection. I'll an to write about one of them soon.

Re: Location location
  • 3/20/2013 11:10:13 AM
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Noreen its good advice there used to be restrictions  on franchises placement years ago based on population density, it was how so many McDonalds owners were able to guarantee wealth.  Many of the smaller franchises don't have these restrictions and it could prove very costly for someone investing in that franchise. The fine print and the analytics could be the difference between making a very good living and going under.

Re: Location location
  • 3/20/2013 7:58:40 AM
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I recall Emmett Cox, another All Analytics blogger, wrote about the importance of location analytics in his book, Retail Analytics: The Secret Weapon, which published last year. So, I dug it out. Doing location analytics well requires a few things, like geocoding for converting addresses into codes readable by software; competitive location data (typically purchased); population data (again, typically available from external sources), and Topologically Integrated Geographic Encoding and Referencing, or TIGER, files, sourced, he says, from the US Census Bureau. To understand location, all these data sources get layered on a GIS-produced map. And then there are all the different ways to understand retail trade areas, or spheres of influence....

Location location
  • 3/20/2013 7:03:08 AM
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Maybe one of the first things to analyze is location -- too many franchises are over saturated



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