We asked Dave Schaefers, Chief Development Officer at Driven Brands, how he is using big data and other technologies for franchisee recruitment. Here’s what he had to say.
We asked Dave Schaefers, Chief Development Officer at Today, growing a franchise network is a much more complex challenge than just running ads, attending franchise business shows, cold calling, and ultimately hoping for the best. With the wide range of franchising opportunities available today, there no longer is a one-size-fits-all approach. Aligning potential business investors and franchise operators with the right brand is critical to the initial sale of the franchise — and the overall long-term success of the organization.
So how can a franchisor accomplish that? It begins with research. A wealth of data is available that can be analyzed collectively to unveil market opportunities we might not have seen previously. Understanding how to evaluate all of that data requires analytical modeling and forecasting, and we’ve expanded our capabilities in that area to be able to fully leverage this information, with in-depth data analytics now a fundamental part of our business strategy. We look at driving trends across U.S. markets, accident and vehicle maintenance data, population forecasts and market growth patterns, fuel prices, age of vehicles on the road, new vehicle sales reports, consumer confidence reports, and more.
We also apply that technology-based approach to better understanding potential investors and business partners. Once we understand a market’s opportunities, we perform a thorough data analysis on how that market is currently served and what the future might hold. Is a new neighborhood developing? How can we develop local partnerships to become part of the fabric of that neighborhood? We are now able, through our data, to determine who might be the best partner for that market and create a unique opportunity aligned for their growth and investment goals. Or, if a region is experiencing substantial growth, we can develop distinctive territories based on analysis of market data to harness the potential of that future DMA for a major investor.
None of this was possible 10 years ago. As data has become more available over the past few years, it requires a sophisticated approach to aggregate all of that information in an understandable format that can provide a clear view of a market’s opportunity and understanding of the business partners and investors best suited for it. But advanced data isn’t the only solution for successful franchise growth. It still requires people who can connect with potential partners and build that vision together. The data only makes that connection more dynamic and powerful.
A targeted, quarterly magazine that takes CEO's, VPs and Sales Executives to the cutting edge of franchise development.