GROWING YOUR SYSTEM
BY HELEN BOND
Going
Big data : Extremely large data sets that may be alyzed computationally ally to an-
reveal patterns , trends , and associations , especially lating to human behavior
and interactions . ( Oxford Dictionaries re-
)
When Tropical Smoothie Cafe pondered an ingredient upgrade to a popular smoothie , the brand turned to data for direction . Using information culled from its recently launched app , the company surveyed customers who regularly ordered the smoothie and pulled together a blind taste test of 50 customers in its hometown of Atlanta . Within days , the franchisor was armed with enough insight to launch a test market of the tweaked drink , a menu move that previously would have taken weeks or months and often required hiring outside help .
Big data is changing the way franchise brands do business .
Franchisors large and small are making the dash to take advantage of the staggering amounts of increasingly accessible digital data to carry out strategic business moves , cut costs , and boost profits in all facets of their operations .
“ The ability to have data at your fingertips to help make decisions has been a game changer for all industries , but specifically in franchising ,” says Tropical Smoothie CEO Mike Rotondo , who has implemented a myriad of big data initiatives to engage and reward customers and drive decisions designed for growth .
Mike Rotondo
BIG DATA HAS GREAT VALUE — IF YOU KNOW HOW TO USE IT
Whether through an internal system , thirdparty software , or both , franchisors are finding that track- ing customers ’ digital and social media footprints can be a powerful ally in analyzing , predicting , and prescribing targeted marketing campaigns and strategies . POS and CRM systems , especially when coupled , offer franchisors the data they need to deliver personalized promotions , track trends , retain customers , boost traffic , and automate media buys . On the franchise development side , data is being used to predict the potential success of a franchisee , to make better site selections , and to improve operations , staffing , and franchise relations .
The brand ’ s Tropical Rewards App , beta tested earlier this year and launched system-wide in June , unites mobile payments , digital ordering , and a loyalty program that includes gamification elements to allow customers to unlock perks and offers for its smoothies and food at the chain ’ s 500 cafes . More important , the app ( which at last count had a half a million downloads and 125,000 active users ) brings together the brand ’ s digital consumer programs and delivers data that provides invaluable insights into its customers ’ behavior . Over time , this will allow Tropical Smoothie to sunset its other digital communication methods to ensure a single data source .
Rotondo views the increasing reliance on data analytics as an evolution for his
66 Franchiseupdate ISSUE III , 2016