Franchise territory success starts with crafting potential territories and identifying opportunities for higher sales performance. Territory balancing can launch new areas of almost equal marketing value, plus reorganize regions that already exist and redirect efforts based on the growth of competitors or changing consumer demographics.
Territory balancing is not an operation that is done only once; it is an ongoing process with simultaneously changing dynamics that depends upon the real-time changes that are taking place in the market and also account for the performance and ability of the franchisees. The most effective way to achieve franchise territory balancing is to make the franchise responsive. In particular, sensitive enough to respond when the regions are equally distributed on a large geographical scale. Otherwise, the equilibrium is lost, and all the territories are not able to function appropriately or take advantages of the business opportunities with the customers in the defined geographical area. Most importantly, they fall weak to act as contenders and compete against franchises that are not bound by specific territories.
Four factors need to be accommodated to understand and manage franchise territory balancing.
The level of prospective return on the asset that was invested in the franchise, meaning how big the market is.
How efficiently can the sales be managed in the area concerning the time required to travel, and make customer appointments?
How much sales the market has made in reality with a specific territory as compared to the industrial standards.
How profitable the territory is and how much potential does it hold to expand in a span of 10 to 15 years.
So to understand the right balance that lets you manage all your territories effectively you need to consider these factors. GeoMetrx software enables you to overlay the population into a dynamic scheme map that shows you opportunities and competitors. This visual will let you redefine the possibilities according to the type of business.
The results bear fruit because you’ll obtain well-managed and balanced territories that offer an excellent opportunity for investors. This information will help franchisees maximize their profit percentage with an area that can change dynamically with a changing marketplace.
To learn more about how GeoMetrx can help balance franchise territories, contact us.