FEATURED ARTICLE
Predictive Analytics to the Rescue
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I recently read an International Franchise Association article that outlined what franchisors should be doing to help their franchisees obtain funding for new capital projects in today’s risk adverse environment.
The suggestions were good and spoke to the fact that educating lenders about the brand and providing lenders with supporting documentation beyond the FDD is required today to help push things through a system that is still dealing with lots of uncertainty.
Another sound recommendation hinted at, but not expanded on, would be for the franchisor to provide the lender with some indication of the new store’s likelihood for success. An earning’s claim? No, we know these words are heresy, but predictive analytics can go a long way towards this objective without having to provide an actual projected revenue or earnings.
What are the dynamics of the trade area – are they favorable? How many of this brand’s best customers reside proximate to the new location. Where are the competitors and how do they help or hurt this location? What are the unique site characteristics of the physical store itself as well as the retail environment that will help this unit perform well? How does this unit compare to other units in the chain in similar markets sizes and conditions?
A well-thought out predictive analytics plan can help a franchisor more than just evaluating real estate for their own corporate stores, that very knowledge may be the difference between helping a franchisee get funding or not. Lenders have also gotten wise to this and are now starting to do their own advance real estate research too. It’s a wonder this isn’t a lending industry standard already! |
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Pitney Bowes Group 1 Software and MapInfo are
now Pitney Bowes Business Insight.
As a combined organization, we are dedicated
to quality solutions and expert advice. This
expanded breadth brings to you:
• Powerful visualization
solutions that
leverage
location-based information
• New ways to manage and
use data
• Communication
management capabilities to
deliver clear, consistent,
personalized communications
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Learn how CitiFinancial utilizes location
intelligence and data solutions for branch
performance analysis and footprint expansion.
Read full case study. |
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Click here to read more.
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Earthsense was able to integrate location
intelligence into their survey data to gain
vital insights: who their ideal customers are,
where they live, work and play, and the most
effective method of marketing to them. Read full
case study. |
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Click here to read more.
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