3 ideas for optimizing sales in the franchise network thanks to PRM

by Wojciech Zarębski on April 16, 2024

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Introduction

One brand, thousands of points – when it comes to scaling, this business model seems to have no ceiling. However, what is an opportunity is also a threat. The dispersion and certain sovereignty of each of the partner points is a risk that they will get out of control or will not meet sales or image expectations.

Technology comes to help in managing and constantly conquering the results. PRM systems are a novelty in Poland, but they have been successful in the West for several years (CAGR from 2021 to 2028 is 16.2%).

How can PRM class solutions optimize sales in a franchise network?

1.0 Partner potential management

The relatively low threshold for entering the franchise business attracts investors with very different levels of business experience. Also those for whom this is the first approach to this form of business, which can potentially be a factor reducing the return on investment.

The answer to this is the PRM system, which allows you to configure modules to analyze sales potential. The system can aggregate data that directly impacts the profitability of a new point of sale and assess the likelihood of investment profitability. It may include, among other things, competition, its assortment and opening hours, the environment (e.g. proximity to a kindergarten makes it difficult to obtain an alcohol license), land use (future and current, if it is an area where new buildings will be erected soon) and demographic data of residents and their lifestyle and habits shopping.

The PRM system aggregates this data, draws conclusions based on proven formulas and is constantly learning – thanks to this, each subsequent decision about a new opening is supported by business-relevant data – explains Wojciech Zarębski, CEO of Power PRM. – PRM feeds on data and learns the specifics of a particular company. It is a personal network management center – he adds.

The success of the entire network is the sum of the successes of individual points of sale. The right decisions in the context of the format of the store or service point are the starting point for high turnover.

2.0 Management of goals and KPIs

In the franchise model, the challenge is dispersion – outlets connected to the same brand and strategy are often hundreds of kilometers apart. Although they are connected by coherent communication or assortment, each of the points operates in a different competitive environment, which results, among others, from the from the location. In order for the goals and KPIs to be realistic, an intelligent system and improvement of the sales planning and monitoring process are needed.

PRM meets this need comprehensively – from support in setting goals per facility to a detailed preview of their implementation in real time. Each subsequent sales cycle is new, reliable data, which is a lever for further increases in results or strategic decisions.

They allow you to capture sales trends and assess what actions are needed for a specific point. This may be an increase in the emphasis on marketing, a better adjustment of the assortment, a change in the price grid or personnel decisions. All these moves are an opportunity to optimize sales.

3.0 Communication

From the consumer’s point of view, shops or services under a common logo should speak with one voice. Thanks to this, the customer knows what to expect when he visits a point of sale on a different street or in another city. Each subsequent successful visit to the facility builds brand and loyalty – explains Zarębski.

That is why consistent visual and communication is so important. It makes the customer quickly find himself in the store, does shopping efficiently and feels “at home”, because he recognizes certain permanent visual elements, which builds a sense of security and trust.

Consistent communication, project management, and other joint initiatives are also important. If they are nationwide, the customer has the right to expect that they will be active at each point, thanks to which, for example, he will exchange his points for gadgets, get a coupon for future purchases or have a chance to win the lottery.

The PRM system serves as a hub that enables managing and synchronizing activities related to promotions, maintaining consistent branding, and other marketing activities at the network-wide level. The intuitive management panel enables the exchange of information, which makes it easier to run a business for both the head office and individual franchisees. It allows for quick changes, even in the event of crisis situations such as the need to modify promotions or replace advertising materials or the need to provide important information to employees scattered throughout the country.

Such well-managed marketing campaigns are wind in the sails for sales thanks to more visits to the store and increased purchases per visit. The integrated system guarantees that the selected concept will go to each franchise point and will be implemented in accordance with the strategy.

The PRM market is growing rapidly

Global Partner Relationship Management Market size was valued at USD 73.47 billion in 2022 and is poised to grow from USD 85.23 billion in 2023 to USD 279.40 billion by 2031. Such a strong growth results from PRM’s precise response to the needs and problems of business in the franchise model, which are universal, regardless of the market and industry.

The pioneer of PRM in Poland is Netwise S.A. – the most awarded integrator of CRM and PRM systems. After the success achieved on the American market, he transferred the proven solution to the Polish market of franchises and partner networks. Netwise S.A. recently established the company Power PRM, which will introduce a proprietary platform for business management to the market.

3 ideas for optimizing sales in the franchise network thanks to PRM

You read:

Introduction

1.0 Partner potential management

2.0 Management of goals and KPIs

3.0 Communication

The PRM market is growing rapidly

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