Starting a retail franchise is an exciting and potentially extremely profitable way to become your own boss and enter a thriving industry. If you’re looking to make your retail business as successful as possible, Point Franchise is here to help. Here are four tips for running a retail franchise effectively and efficiently.
The total value of retail sales reached a peak of nearly £440 billion in 2019 [Statista]. In such a fast-moving sector, choosing the right retail franchise for you and starting your business venture on the front foot can be a challenge. Hopefully, this guidance will help you out post-investment, making your first year in business a brilliant one.
Why become a franchisee in the retail sector?
If you’ve not yet committed to a retail franchise investment opportunity and are still in the research phase, what are you waiting for? The retail industry is undeniably successful and in-demand, and with so many options to choose from, you’re sure to find something that perfectly suits your interests, needs and financial capacity. There are even more advantages to franchising in retail, such as:
- An exciting, dynamic working life perfect for a people person
- Plenty of room to grow and develop your franchise
- Plenty of diverse options to explore
- Access to extensive franchisee training
- Access to ongoing franchisor support
- A lower rate of failure (compared to starting your own retail business from scratch)
>> Read more:
4 tips for running a retail franchise successfully
If you’re committed to making a successful career change with a retail franchise, there are certain things you can do to enhance your business’s performance and keep it running full-speed ahead each working day. Here are four tips for making your business as busy, profitable and long-term successful as possible...
1. Invest time and money in marketing
Marketing is key when you’re running a retail franchise, and though your franchisor might offer you support in this area, you’re still likely to have to do some of the work yourself. Brand interactions seen as “helpful” are 1.5 times as likely to lead consumers to both buy from and recommend your franchise [Think with Google], so nailing your advertising strategies and presenting your brand in the right way is crucial. Here are some essential marketing strategies for promoting your business:
- Go the extra mile for your customers
- Do good in the community
- Create strong, long-lasting relationships with the media
- Examine your competition in detail
- Launch a great website
- Use social media to reach new audiences
- Make all of your marketing content count
- Control the whole sales funnel
2. Commit to the delivery of excellent customer service
Quality customer service matters, and on a global scale, 54% of consumers have higher customer service expectations than they did just one year ago [Microsoft]. If you want a customer to keep coming back, making them feel heard and provided for is an absolute imperative. Excellent customer service encourages repeat business, gains your franchise a good reputation and allows you to maintain a competitive edge over similar businesses. Here are some tips for the provision of this excellent customer service:
- Conduct plenty of market research
- Gain an understanding of the needs and wants of your target customer
- Respond to these needs and wants however you can
- Invest in employee training to ensure quality customer care across the board
- Create a complaints procedure and stick to it
- Respond with speed and compassion to any and all complaints/issues raised
- Follow through on the promises you make
- Be transparent with customers when something goes wrong
It's not just about the customer always being right. It's about treating your customers like you'd treat your family. And that doesn't happen by talking down to them or looking for any possible way to extract more money from them. It happens by truly going out of your way for them and adding enormous amounts of value to the equation. Today, if you're delivering sincere value to your customers, you're all-but guaranteeing your own success.
- R.L. Adams, Entrepreneur
3. Reward customer loyalty
Customer loyalty is make or break for some retail franchise businesses, and as discussed above, great service is one way to increase the rate of loyalty. But what should you, as a business owner, do with this loyalty? Reward it. Thank repeat customers with discounts, loyalty card schemes, free trials, advance product previews and referral reward programmes, and you’ll soon reap all of the following benefits:
- An increased number of referrals, building your customer base
- Increased revenue, thanks to the above, and increased repeat custom
- An improved brand reputation
- Increased customer engagement
- Less direct, price-to-price competition with competitors
>> Read more:
- 5 Qualities of a Successful Franchisor
- 4 Things Franchisees Never Have Time for But Are Essential for Running a Successful Business
- How to Launch a Franchise and Get Noticed
- 4 Elements of a Successful Franchise
- How to Start a New Business on a Shoe-String Budget
- The Ultimate Guide to Franchising Success
4. Don’t forget your most valuable resource
In all the work you do to make your business successful, it might be easy to forget that you’re not in this alone. You’re a franchisee with a built-in network of support. Expertise and experience is all around you, and available to you from multiple different sources. Of course, the specifics will differ from investment to investment, but the concrete fact to remember is that your franchisor is there when you need their help. As your most valuable resource, they can do the following and more:
- Offer marketing insights based on existing data and sector experience
- Keep you updated on the latest retail industry trends and developments
- Keep you updated on the latest retail industry rules and regulations
- Make suggestions for the future of your franchise
- Help you determine whether growth/expansion plans are viable
- Help you train and acclimatise new employees
- Offer you ongoing development opportunities and new learnings
In exchange for your franchise investment, we will provide packaging and seasonal materials throughout the year. New franchisees will also get comprehensive guidelines and training from an international skilled team of visual merchandisers. Other management support includes evaluation and planning meetings, staff training, purchasing analysis and planning, marketing planning, and visual merchandising workshops.
- Noa Noa
If the idea of running your own business in a profitable sector appeals, why not start a retail franchise?
This article should leave you well-equipped to launch a successful retail franchise whenever you’re ready. If you’re still not sure where you might like to invest, why not check out Endura Roses (preserved floral arrangements and bouquets), CAVAVIN (incredible wines and spirits) or Signorini Tartufi (a range of unique truffle products).
Cara Squires, Point Franchise ©