If you plotted the locations of all of your existing franchisees’ customers throughout your network, how would their performance correlate with their customer spread?
On a top level analysis based on figures alone, would you reveal unknown truths about how these ‘best’ performers operate their territory? The above image provides a common example of two different franchisees' customer bases' and the differences in how they each operate to achieve their level of turnover.
There might be a franchisee that has a high level of turnover when bench-marked against the network, but how much commercial opportunity do they cover? Does this franchisee have the largest territory? Perhaps they have areas within their territory which are going largely untapped? Or are a large proportion of customers coming from outside of the territory. In these scenarios, a more appropriate measure to review alongside turnover would be market penetration.
We've discussed in previous blogs on passive sales the dangers and headaches that can be caused from the failure to manage such an issue, and advised on how they are easily managed (read here). By simply plotting the locations of franchisee customers, you can quickly observe where they are building their business and generating their customers from. If a franchisee is operating heavily outside of their territory border, they should be encouraged to first concentrate within their assigned territory. Only when they have reached an agreed performance level they can look to purchase an additional neighbouring territory.
Monitoring and keeping on top of territory performances ensures that awarded territories are fully utilised, and franchisees avoid the risk of losing a substantial amount business when neighbouring territories are sold. Additionally, new franchisees aren’t left purchasing territories that have been heavily cannibalised by an established franchisee.
It is important to make sure when monitoring territory performances that you have an accurate and informed understanding on their ‘actual’ performance and do not solely rely on top level figures. It’s vital that a visual and statistical comprehension go hand in hand, and that the support and advice passed onto franchisees is informed, constructive and correct.
Atlas Mapping can help you to communicate this through the use of high-detail and professional outputs, and plotting the locations of customers is as simple as providing a list of their Postcodes.