Three Ways Your Smartphone Is Changing The Future Of Franchising

Smartphones have already revolutionized the franchising industry. The evidence is overwhelming: hole punch reward cards have now been swapped out for loyalty program apps, which allow customers to save their regular orders online so they can shop at the touch of a button and easily redeem the next great deal.

The smartphone trend is only going to grow. According to Pew Research Center, 68 percent of adults in the U.S. owned smartphones last year, up from 35 percent back in 2011. Statista also estimates that by 2019, there will be more than 200 billion smartphone users across the country. That means that both consumers and the businesses they frequent will rely on smartphones more than ever before.

Here are three ways smartphones are poised to change the future of franchising:

Customer Relationships

It’s no secret that consumers are always glued to their phones. From emails and calendars to social media platforms and texts, smartphones are used in just about every aspect of life. By creating their own apps and sites, franchises become a part of that constant network. Mobile apps, social media content, targeted email promotions and paid advertisements are all ways for brands to get their names in front of a digital audience and build customer relationships. Different franchises have already found their niche—while Taco Bell has made a name for itself on with its irreverent tone on Twitter, other brands like Smoothie King have built a reputation for its rewards app.

“As our mobile screens expand, so does the content that is developed to fill it up. Brands need to understand the value of their guests’ phone space and develop experiences that are worth having in any media—from social media to mobile applications,” said Katherine LeBlanc, Smoothie King’s marketing and communications manager. “Ass smartphone technology evolves, the way consumers spend money at franchise locations across the country will continue to change.”

Lending and Loans

The Washington Post tells the story of a small business owner who needed a quick advance on her loan in order to avoid a shipping crisis. So she logged into an app, accessed her loan and received a cash advance of about $3,500 all in a matter of seven minutes.

Franchises aren’t the only brands building mobile apps and sites—banks and other lenders are relying on smartphones to run their businesses as well. There are also numerous startups dedicated to securing loans for their uses. That means that franchisees will have more options when it comes to securing a loan for their business. Smartphones are taking away the need to go into a physical bank and meet with a potential lender. It’s likely that down the line, franchise owners will be able to handle their finances remotely.

Business Operations

Franchisors are also increasingly dependent on their smart devices to get their jobs done every single day.

In an article for Fast Company, Rich Rao, who leads the global Android, Chrome and education business within Google for Work, said, “Soon, mobile productivity won’t just be about getting notifications, setting reminders or scheduling meetings on the go. Software powered by machine learning will help our devices understand how we operate, anticipate our needs and pave the way for a more productive (and hopefully more pleasant) workday.”

Smartphones have the potential to alter the way franchisors run their businesses. Franchisee training programs and owner inquiries can all be handled on mobile devices, changing the way franchisors communicate with their teams. Of course, nothing can compete with discovery days and in-person meetings. But smartphones have the ability to change the entire process leading up to those points.

The smartphone revolution is only getting started in the U.S., and its impact on the franchising industry will become more and more significant for years to come.