Leveraging Technology in Modern Franchising

In franchising, technology has become a pivotal element in enhancing customer service, streamlining operations and maximizing profitability. 

“Technology is transforming every aspect of franchising, from payment processing to data analytics and cloud computing,” said Michael Seaman, CEO of Swipesum, a comprehensive payment processing and merchant services consultancy delivering innovative auditing solutions to franchises and other businesses. 

1851 Franchise spoke to Seaman to learn about how modern franchises are leveraging technology to stay competitive and meet customer expectations.

Revolutionizing Customer Service with Advanced Payment Solutions

One of the critical areas where technology is making a significant impact is in customer service, particularly in payment processing. Seaman emphasized the importance of finding the best solution that enhances customer experience before focusing on cost. 

“Most are focused on speed and price when they look at this solution,” he said. “And if you focus on the fees and price, you're missing the important part, which really is the solution that is the best for the business owner and creates the best customer experience.”

This approach ensures that franchises can offer modern, user-friendly payment methods such as mobile apps and iPads, which align with customer expectations for convenience and efficiency.

Harnessing Data Analytics for Informed Decision-Making

Data analytics plays a crucial role in franchisor decision-making. 

"For franchisors, who are not actually in each business but trying to see everything from a bird's eye view, most decisions are based on data,” Seaman said. 

By leveraging data, franchisors can perform detailed audits of reporting to identify cost-saving opportunities and understand customer trends, such as credit scores and transaction details that might influence other business areas. Seaman also emphasized the importance of data-driven approaches to optimize financial performance. 

“We do audits of all reporting to verify that each transaction was at the lowest cost and identify new opportunities for savings and customer trends,” he said

This data-driven approach helps franchisors make informed decisions that enhance operational efficiency and profitability.

Enhancing Operations with Cloud Computing

Cloud computing is another technological advancement that benefits franchise operations. It enables greater collaboration across a franchise by providing instant, online communication and access to cloud-based applications.

“Having cloud-based apps and communications that are instant and online and not locked to a single location allows for greater collaboration across a whole franchise,” Seaman said.

For customers, this translates into a seamless experience with the brand, regardless of location. Internally, it ensures that franchisees and franchisors can communicate and share information efficiently, facilitating smooth operations. Cloud-based systems are now a must-have for franchises aiming to meet modern business standards and customer expectations.

Leveraging AI for Competitive Advantage

Artificial intelligence (AI) is increasingly becoming a critical tool for franchises. Seaman says that AI should not be viewed as a replacement for human roles but as an aid to enhance productivity. 

“It shouldn't be looked at as ‘who will this replace,’ but it's almost like an aid to help with productivity,” he said. “And companies that master leveraging AI are the ones that will really get ahead.”

Empowering Franchisees with Online Training Platforms

Online training platforms are essential for equipping franchisees with the knowledge and skills needed for success. Effective online training programs can leverage AI to create interactive, smart chatbots that serve as a comprehensive knowledge base for franchisees. However, the human element remains crucial, with mentors and business coaches playing an integral role in the learning process.

“You can't just rely on software and an online training program. You can't lose touch of the personal and human connections,” Seaman said.

Leveraging technology in modern franchising is not just about adopting the latest tools, but integrating them thoughtfully to enhance customer experience, optimize operations and drive profitability.

“Franchises that effectively harness technology will lead the way in today's competitive landscape,” said Seaman. 

To learn more about technology in franchising, check out these related 1851 Franchise articles: 

• Finding the Right Franchise Technology on a Budget
• Technology in Restaurant Franchises: How Tech is Changing the Dining Landscape
• Here's What's Trending in Franchise Innovation for 2024