How are franchisors using business analytics?

“Put control of sales into the hands of the franchisees. That is the key to success,” says Dag Hognerud, CEO at RS Scandinavia.

“That way everyone knows exactly how the business is doing and what it takes to get the results they want.”

How business analytics creates value

RS Scandinavia is the company behind the Norwegian brand Renholdssoner and international brand N3Zones. The franchise is recognized for ultra-modern products that reduce dust and promote cleaner, healthier environments in professional and commercial buildings. Started as a franchise in 2009, the company now turns over more than 50 million NOK and has grown to 12 franchises.

Full control of sales

For RS Scandinavia, control of sales means setting clear goals and using analytics to help them reach those goals. Both franchisor and master franchisers agree what performance indicators are important. Every franchise is different.

“We use analytics to monitor franchise health and guide decision-making, says Hognerud.“ Analytics give us a lot of answers about what we need to do. For example, if a certain type of activity isn’t being completed fast enough, we can change our training program to develop the skills that are needed.”

Tracking on their own dashboards

Everyone at Renholdssoner and N3Zones has their own dashboard. The franchisor sees what is going on by country, franchisee and role. The franchisee set their specific goals and tracks progress. The salespeople see their own customer portfolio, performance and activities.

There are graphs. There are indicators. There are lists of activities. The most important indicators are graphically illustrated and easy to grasp. If someone wants to understand what is influencing the numbers, she can drill down into the underlying data.

Part of the franchise culture

“Speed and precision – these are important components of our culture. “We’ve invested in good systems so that we can work effectively and expand,” says Hognerud. “These include a CRM, ERP, customer service, customer feedback and online academy. Data is pulled together to give a 360 degree view of the organization.”

“We use live data to be as accurate as possible. Before a status meeting, everyone can review up to date numbers. The numbers quickly paint a picture what’s working and what’s not. That way we can keep improving – that’s what counts.”