Saturday, September 14, 2024

The digital world at the heart of franchise strategies

The digital world at the heart of franchise strategies
As highlighted by tousentrepreneurs.com, digital technology plays an increasingly crucial role in the franchise sector. A recent survey conducted by Banque Populaire in partnership with the Fédération Française de la Franchise (FFF) reveals the growing reliance of franchisees on digital tools to enhance customer relationships, optimize sales, and foster customer loyalty. In this article, we analyze key trends from this study and explore the opportunities digital technology offers to franchises.

Massive adoption of digital tools by franchisees


The rise of e-commerce and the need to meet consumer expectations have pushed franchisees to embrace digitalization. Today, 88% of franchisees use at least one digital tool for customer retention. This trend is evident through widespread adoption of store geolocation (86%), promotional displays (71%), and online appointment scheduling (52%). These tools not only attract new customers but also simplify the shopping experience for consumers accustomed to navigating online.

Additionally, services such as Click & Collect (used by 40% of franchisees) or online stock availability (35%) are significant assets in driving in-store purchases while providing customers with increased flexibility. The message is clear: digitalization has become essential for franchises that want to stay competitive.

Increasingly connected consumers


The study also highlights that French consumer habits are shifting toward increased digital usage. In fact, 65% of consumers have made online purchases with home delivery, and nearly 6 out of 10 French consumers (59%) use Click & Collect or book services like hairdressing or fitness sessions online. This underscores the importance of integrating digital solutions to meet the growing demand.

Artificial intelligence and social media: new challenges for franchisees


While traditional digital tools are now well integrated, a new challenge is emerging for franchises: artificial intelligence (AI). According to the survey, 4 out of 10 franchisees view AI as an opportunity, particularly in sectors like hospitality and food service, where 55% of franchisees see this technology as an asset. However, 23% of respondents still perceive AI as a threat, highlighting the need for awareness and training to ensure smooth adoption of these tools.

In addition to AI, social media plays a vital role in franchise communication strategies. Nearly 9 out of 10 franchisees (85%) use at least one social network to promote their business. Facebook leads with 78% of franchisees having a page dedicated to their store, while Instagram is also gaining popularity (58%). Despite this growing usage, many franchisees still express the need for support from their franchisors in effectively deploying these tools.

Digital tools in service of customer loyalty


The use of digital tools is not limited to communication or online sales. They also play a crucial role in customer retention. In fact, 88% of franchisees use a digital tool in their loyalty strategy, whether through email or SMS campaigns (71%), satisfaction surveys (58%), or loyalty cards (60%).

For franchisors, investing in digital remains a priority: 99% report making significant investments, particularly in external communication (88%) and internal process digitization (77%). Omnichannel strategies, which involve using multiple sales channels, are also becoming key, with 70% of brands expanding their presence on marketplaces.

The Banque Populaire survey clearly shows that digital technology is now indispensable for franchises. Whether it's attracting new customers, enhancing the in-store experience, or fostering customer loyalty, digital tools are widely embraced by franchisees. Artificial intelligence and social media present the next challenges to overcome to meet the evolving demands of the market. Franchises that master these tools will have a significant competitive advantage in the years to come.