How Data and Analytics Help Franchises Take Their Businesses to the Next Level

Brands collect a seemingly endless amount of information, and it’s up to them to leverage what they find in order to improve their efficiencies.

By Cassidy McAloonSenior Writer

SPONSOREDUpdated 1:13PM • 07/18/16

From consumer reviews and social media mentions to website views and point of sale systems, franchisors are collecting more data today than they ever have before. While that surplus of information can seem overwhelming, it’s essential for brands to leverage as much data as possible in order to take their business to the next level.

In an interview with Forbes, Travis Oliphant, CEO of Continuum Analytics, said, “In the past, data came primarily from operational systems. Today, data is coming from everywhere: phone, internet browsing, social media, quantified self, vendors who know more about you than you realize, machines, associations with friends, college buddies, business networks and many other sources. Combining this data starts to paint a more holistic picture of your business, as well as your life and the underlying motivations that are driving the processes and behaviors.”

Utilizing data analytics gives brands insight into the major keys that are keeping their business moving forward. The most obvious benefit is that data tells brands what practices are adding the most to their overall revenue. But the power of analytics doesn’t stop there—data gives brands the opportunity to determine what their next strategies and plans should include. By leveraging data, businesses are able to improve their efficiencies.

“Data is the missing link between marketing actions and results,” said Tim Suther, chief marketing and strategy officer for Acxiom in an interview with Forbes.

Brands are ultimately responsible for taking the data they collect and turning it into valuable actions. Every part of a franchise’s digital footprint has the potential to change the way businesses operate for the better.

That data collection goes beyond intangible business strategies—even franchisees and employees are being targeted by analytics. According to the Washington Post, more companies are employing technology and data analytics tools to determine who to hire. This trend is called “people analytics,” and it’s helping brands predict the types of employees who will be the best fit for their companies.

The role that data analytics plays in the franchising industry is only going to grow. As more technologies emerge that interpret the meaning of valuable information, franchisors will continue to utilize them in an effort to stay one step ahead of the competition.

“Not only does data enable marketers to be more effective and efficient, but it provides them the platform to be able to prove it,” said Suther.