Unlocking Growth: How to Increase Franchise Sales Successfully
The franchise business model is undeniably thriving in today's market. Major brands and emerging entrepreneurs alike are capitalizing on franchising as a means of expansion. With franchise owners consistently establishing new outlets and a surge in franchise buyers, franchising has become one of the most sought-after business models. Many franchise owners are eager to swiftly recover their investments and maximize profits. PunThai franchise will now offer insights into effectively enhancing franchise sales, setting the stage for prosperity.
Why Should You Invest in a Franchise Business?
Many new entrepreneurs who are considering opening a franchise may wonder: what makes a franchise business so good? The franchise system has a high chance of success because it is a fast and efficient way to expand a business. Franchise owners can share risks with franchisees, while franchisees benefit from using a proven brand and operational system. Maintaining consistent standards in all aspects of the business, from product quality and taste to cleanliness, service, staff attire, store decoration, atmosphere, operating hours, product placement, and more, is crucial. This consistency is what franchise buyers expect and anticipate from a franchise business. Consistently maintaining standards in all areas is an important factor in building trust and providing customers with a good experience, leading to long-term success for franchise businesses.
10 Tips How to increase franchise sales
1. Standardize Your Franchise Business
For franchise businesses, success isn't just about sales and profits at each branch. The most crucial aspect is maintaining consistent standards across all branches. Whether it's product quality, taste, cleanliness, service, staff attire, store decor, ambiance, operating hours, product placement, etc., there must be uniform standards throughout the system. This is what franchise buyers expect and anticipate from franchise businesses. Consistently maintaining standards in all aspects is a vital factor in building trust and providing a good experience for customers, ultimately leading to long-term success.
2. Tailor Franchise Business Promotion to Your Target Audience
Even with excellent products and services, lacking proper marketing and targeted promotion can hinder the growth of your franchise business. Promotion is one of the most critical marketing strategies for franchise operators. It not only helps in creating awareness and attracting new customers but also strengthens relationships with existing customers and builds brand loyalty. In today's digital age, promoting sales can be done through various channels, especially via social media platforms, offering diverse opportunities to market strategies. Additionally, social media features help keep promotions contemporary and appealing to trends. Hence, emphasizing the importance of promoting and marketing through digital channels is essential for franchises to build awareness, attract new customers, and sustain existing ones in the long run.
3. Stimulate Sales with Promotions
Offering promotions is a crucial marketing strategy for businesses in today's market. Whether it's product bundling, price reductions, giveaways, or rewards, promotions effectively attract attention and stimulate customer purchasing desires. When customers feel enthusiastic and captivated by a product or promotion, they tend to make more purchases, leading to increased sales. The more interested customers are in promotions, the more likely they are to buy the promoted products. Comparing products with and without promotions, customers generally tend to choose products with promotions first. Therefore, organizing promotions is a significant factor in attracting and retaining customers, ultimately contributing to business success.
4. Online Marketing to Build Brand Awareness
Online marketing is a vital channel for increasing brand awareness and promotion in today's world. It helps attract new customers and boost sales. Here are the details:
Social Media Marketing
Create pages/accounts on various platforms like Facebook, Instagram, TikTok.
Regularly present content and promotions, including various campaign activities.
Post product/service photos, information, reviews, and engaging videos to make a lasting impression.
Interact and promptly respond to followers' questions.
Precisely target your desired audience through online advertising.
Website Development and Online Sales Points
Develop a website showcasing store products/services with appealing information and visuals.
Open online stores on platforms like Shopee, Lazada, JD Central.
Upload all products with prices, details, and shipping systems.
Offer a variety of secure payment methods for convenience.
Market the online store across various channels.
Influencer Marketing
Collaborate with influencers whose followers match your target audience.
Have influencers review and recommend products/services through their online channels.
Influencers help build brand awareness and credibility effectively.
Attract a large number of views and followers to your store.
These online marketing strategies will increase brand awareness and attract new customer bases online, ultimately leading to increased sales.
5. Expand Operating Hours
One crucial factor that differs among franchise businesses is the operating hours. Choosing suitable opening-closing hours can better align with sales targets.
Consider essential factors such as product/service type, location, and target customer behavior. For instance, a franchise coffee shop located in a business district with mainly office workers might opt for extended hours, covering customers' working hours into the evening. Alternatively, opening earlier and closing later than competitors can attract more sales.
Strategizing suitable operating hours aligned with the target audience can significantly support the success of a franchise business.
6. Expand Sales Channels with Delivery Services
In this digital era, relying solely on in-store sales may not be sufficient to sustain future revenue growth due to evolving consumer behavior. Delivery services play a vital role in meeting the demands of modern customers.
To increase distribution channels and sales, franchise businesses should enhance delivery services. This can be achieved by partnering with external delivery service providers such as Grab, Lineman, Foodpanda, Robinhood, or hiring dedicated delivery staff without waiting for the franchise to join a system.
Offering delivery services is a strategy that directly addresses current consumer behavior, expanding the customer base to those distant from the store. If satisfied with the products and services, these customers may opt for additional in-store services in the future, presenting a golden opportunity to increase sales and efficiently expand the customer base.
7. Provide Impressive Customer Service
Even if a franchise's products are of top-notch quality, lacking understanding or attentiveness from service staff can become a weak point for the business. In customers' eyes, they expect both excellent products and impeccable service.
Therefore, for franchise businesses that require hiring employees, establishing continuous training policies is crucial. This helps instill a sense of commitment to providing excellent customer service according to the brand's standards.
Delivering impressive customer service is a key factor in generating satisfaction and loyalty to the brand. It helps build a loyal customer base and contributes to sustainable long-term sales growth.
8. Collaborate with Partners to Strengthen the Business
Partnering with other businesses is another strategy to expand the customer base and increase sales. Here are some interesting formats:
Joint Sales Promotion
- Collaborate with non-competing businesses, such as a coffee shop collaborating with a glassware store.
- Offer special promotions, like discounts of 10-20% when purchasing from both stores.
- Attract and stimulate customers to purchase from both businesses, increasing sales.
Mutual Discounts
- Offer special discounts to each other's customers. For example, Thai-brand customers can show their Max Card Plus or Max Me app to get a 50% discount on Thai-brand beverages for up to 10 cups per month.
- Attract new customers from partner businesses.
- Impress existing customers by offering special benefits.
Joint Membership Card
- Issue membership cards to customers of both businesses.
- Accumulate points from spending to receive special privileges, such as discounts or rewards.
- Foster customer loyalty for continuous service usage.
Partnering helps increase opportunities to reach new customer groups more easily and creates incentives for customers to return for special benefits, ultimately increasing sales without significant investment.
9. Create Unique and Outstanding Services
Offering supplementary services that stand out is another key strategy to attract new customers and impress them. Some examples of interesting supplementary services include:
Delivery Service
- Addresses the lifestyle needs of modern consumers who seek convenience.
- Saves customers time and transportation costs.
- Can offer free delivery under certain conditions, such as a minimum order of 500 baht or free delivery within a 5 km radius.
- If competitors do not offer this service, it can make our store stand out and gain a competitive edge.
Gift Basket Packing Service
- Meets the needs of customers looking to purchase gifts or souvenirs.
- Adds value to the products, making them more appealing and suitable as gifts.
- Additional service charges for gift wrapping can be considered as another source of revenue.
- Attracts new customers during special occasions like birthdays, Mother's Day, Teacher's Day, etc.
Buy One Get One Free
- A compelling promotion for customers, offering more products for the same price.
- Can specify conditions, such as buying a more expensive item and getting a cheaper item for free.
- Suitable for products with short shelf lives to expedite sales.
- Attracts new customers who enjoy buying large quantities at once.
These special services differentiate and distinguish us from competitors, making customers interested in trying our services and leaving a lasting impression. This leads to word-of-mouth promotion and helps retain customers over time.
10. Marketing Strategies to Attract New Customers
Effective marketing strategies are crucial in attracting new customers to use franchise business services. Creating awareness and incentives for new customer groups is challenging but can be achieved through various channels. Marketing strategies are essential tools for increasing sales and attracting new customers. Here are several formats:
Advertising and Public Relations
- Advertisements through various media such as billboards, magazines, radio, television, to create widespread awareness.
- Online advertising through Google Ads, Facebook Ads, etc., to target specific customer groups accurately.
- Hosting press conferences, special events to attract media attention.
- Special sales promotions, discounts, and giveaways to incentivize trial usage.
Sales Promotion to Attract Customers
- Offering discounts or free gifts to new customers who sign up as members.
- Holding promotions like buy one get one free, volume discounts during special days or festivals.
- Implementing a point accumulation system and offering various benefits to incentivize customers to become members.
- Distributing discount coupons or free product vouchers to encourage continuous service usage.
Opening Branches in New Locations
- Identifying and analyzing target customer groups in different areas.
- Expanding branches to new areas near tourist attractions, business districts, or newly developed residential areas.
- Opening new branches in these areas makes it easier to reach new customer groups.
Combining these strategies appropriately helps increase awareness and proximity to new customer groups, making them more interested in trying our services and leading to sustainable sales growth.
Investing in a franchise business is like planting a tree. It's not just about putting the seeds in the ground; it requires nurturing, watering, and fertilizing. For new franchise investors, consider investing in PunThai Franchise. PunThai Franchise designs coffee shop franchises to be easy to invest in and suitable for beginners. With a one-time investment and no additional expenses, you receive marketing support, sales promotion, and staff training, making it worry-free for investors regarding promotion and sales. Additionally, there's a delivery system to expand distribution channels, making it a great opportunity for those who want to own a coffee shop business without starting from scratch. Read more about investing in coffee shop franchises with PunThai on PunThai blog.
