Franchise brands don’t have to stay off the AI train! Many brands are now integrating AI into various aspects of their operations, from customer engagement to franchisee support and operational efficiency.
In this blog, Mark Hite, Director of Franchisee Sales & Marketing, will share some of his favorite key ways AI franchise tools can be used to help your business grow in every area!
What You’ll Learn
- Enhancing Customer Interaction with AI Franchise Tools
- Using AI to Optimize Your Franchise Operations
- Improve Franchisee Support with AI Solutions
- 2 Ways to Enhance Marketing and Sales Through AI
- Use AI For Location Analysis in Supporting Franchise Expansion
- AI Usage in Decision-Making
- Innovation and Trend Analysis with AI in Product Development
My Expert Opinion on Embracing AI Franchise Tools
Working in franchisee sales and marketing is a job unlike any other. Not only do we have to come up with outstanding marketing strategies and campaigns that work on a large scale, but we also have to take localized content and cultures into consideration.
This is where artificial intelligence franchise tools shine. Whether you want to use them to improve your marketing, keep tabs on your equipment, or train your team members, there’s an AI business solution for your needs.
Just like everything else surrounding AI, you have to keep up on the latest technologies and trends, but once you figure out how to best use it for your business, these tools could be the secret for your franchise success!
Enhancing Customer Interaction with AI Franchise Tools
Use AI-Powered Chatbots
AI-powered chatbots aren’t new, they’ve been around for years and have revolutionized customer service by offering 24/7 support, handling common questions, and booking appointments.
Chatbots are known for guiding customers through their journey from discovery to purchase. According to Exploding Topics, 26% of all sales originate from an interaction with a chatbot. When it comes to customer solutions, a whopping 90% of businesses reported to the MIT Technology Review that they’ve witnessed faster complaint resolutions thanks to chatbots.
AI-driven chatbots can handle inquiries across multiple locations, providing consistent service while freeing up staff for more complex tasks.Take McDonalds, for example. They’ve announced this year that they will be giving 43,000 restaurants an “AI makeover.” Not only will they continue to use AI chatbots to communicate with customers, but they have also implemented other forms of AI to proactively address issues. These tools will give franchisees a real-time view into what’s going on in their restaurants. The updates are also expected to help McDonald’s create promotions and offers using customer data.
Incorporate Personalized Marketing
Thanks to AI, franchises can analyze customer data to create highly targeted marketing campaigns that drive engagement.
That matters to your customers! In a recently published study by McKinsey & Company, it was revealed that 71% of customers expect personalized interactions and 76% get frustrated when they don’t receive them.
That same McKinsey & Company article suggested that utilizing artificial intelligence franchise tools could help more businesses give their customers that customized marketing they’re after, without stressing out already overwhelmed staff.
Going back to McDonald’s, that’s exactly what part of their AI makeover aims to do. Using past purchasing data and customer preferences, their new tools can make customized offers and coupons to be delivered directly to the customer’s McDonald’s app. These AI-driven advertising strategies are more likely to succeed because they’re based on each customer’s preferences.
How to Use AI to Optimize Your Franchise Operations
Supply Chain and Inventory Management
AI-driven supply chain and inventory management has truly transformed the way franchises maintain stock levels and meet fluctuating levels of customer demand.
Franchise owners can use AI for franchise marketing to analyze sales patterns, seasonal trends and other factors that affect consumer spending to predict inventory needs. This reduces waste, cuts costs, and ensures products are always available when customers need them.
Deloitte notes that in 2023, franchises that implemented AI into their supply chain saw a 15% reduction in overall inventory costs, complemented by a 30% improvement in order fulfillment rates.
We can, again, connect this idea back to the new AI rollout from McDonald’s. Using special sensors on their equipment, franchisees can monitor upcoming equipment needs and make plans to replace or repair them before they become an expensive and inconvenient issue.
Employee Training and Development
Franchise AI solutions can help improve efficiency in various departments. Companies that implemented AI-based training programs saw a 20% improvement in employee performance and a 30% reduction in training time.
AI-driven platforms for employee training and development are becoming more popular as they offer personalized learning experiences, adapt to individual learning styles, and identify areas where more improvement is needed.
Personalized training ensures that each employee receives the training they need, at their own pace. Let’s look at Hilton Hotels, a franchise with hundreds of locations and thousands of employees. Their AI-driven training program tailors content to match the learning styles and individual progress of each employee, prioritizing consistent service quality. This process accelerates overall training and ensures all staff members are trained to the same high standards.
Fast-food chain Taco Bell also recently started using AI to improve their employee training and development. Byte by Yum is an AI tool that will help improve menu, inventory, and labor management, as well as kitchen and delivery optimization.
Improve Franchisee Support with AI Solutions
Predictive Analysis
Predictive analytics uses data, statistical algorithms and machine learning to identify the likelihood of future outcomes, based on past data. Using AI, franchises can share data from multiple locations and use it to identify emerging trends.
Franchise owners might use this technology to provide support to locations that would benefit from more staff or identifying products that are likely to perform well in specific markets or seasons. Big chains like KFC, Taco Bell, and McDonald’s are already using some sort of predictive analytics to help improve their bottom line.
Domino’s Pizza consistently leverages predictive analytics to analyze customer preferences and data across its various franchise locations. From there, they are able to optimize marketing strategies for different regions, predicting trending menu items in specific areas.
Franchisee Onboarding
Ready to improve your onboarding process? AI can help automate essential, monotonous tasks such as documentation, creating training models, and explaining initial setup procedures. Franchises use AI to speed up the onboarding process and ensure consistency and standardization across their entire franchise network.
AI-Powered Franchise Marketing Platforms
When it comes to marketing, there are many AI tools and platforms to help you make the most of your data. Some of the most popular AI-powered franchise marketing platforms include:
- Cinch – This customer retention software is used by big names like Master Jiffy Lube and PestCo. to collect customer data, analyze customer retention strategies, and automate marketing across multiple digital and traditional channels.
- Braze – Braze is used by Canva, ELF Makeup, TurboTax, and HBO Max. It harnesses the power of AI to build stronger relationships between customers and brands.
- Hyperlocology – Used by franchises like Kumon and Papa Johns, this AI-driven platform helps franchisees customize local advertising campaigns while maintaining overall brand consistency.
2 Ways to Enhance Marketing and Sales Through AI
AI-Driven Advertising
According to a recent Invoca study, AI services for businesses have exceeded ROI expectations for 80% of marketers in 2024. That’s the power of data analysis, optimization and proper targeting.
AI tools will automatically adjust your bidding strategies, prioritize the most captivating creatives, and predict which ads are most likely to draw the most conversions. These efforts will result in higher return on investments and reduce ad spend.
Coca-Cola uses AI to business solutions analyze consumer behavior, predict trends, and tailor ad campaigns to hyper-specific audience segments. These efforts ensure the company’s marketing efforts are resonating with the customer to drive results.
Social Media Marketing
Managing social media for a franchise would be time-consuming without the assistance of AI tools. By automating tasks like scheduling posts, responding to comments and analyzing customer engagement, franchises can refine their social media strategy.
By decreasing time spent on manual tasks, social media managers can focus their efforts on strategic initiatives. Marriott International uses social media tools driven by AI to keep their brand voice consistent across various social media channels and franchise locations. Even the Franchise Brokers Association uses HubSpot to streamline their social media using AI tools!
Using AI-based social media tools help franchises schedule content, engage with followers, analyze campaign performance and keep tabs on every location.
Use AI For Location Analysis in Supporting Franchise Expansion
Franchise networks should rely on Ai to help them make data-driven decisions when identifying the best locations for expansion. By analyzing vast amounts of data, franchisors can understand demographic information, competitor presence and local market trends.
According to Forbes, in 2023, businesses that were using AI for location analysis reported a 30% increase in the success rate of new franchises.
Subway uses AI to analyze potential franchise opportunities for new locations by assessing foot traffic patterns and local competition. It also helps to analyze demographic shifts in potential neighborhoods, as well as understand real estate trends to help them know if the new franchise would be financially viable. This process helps them consistently identify locations that are likely to succeed, helping them expand their franchise network.
AI Usage in Decision-Making
AI’s ability to process and analyze data quickly allows both franchisors and franchisees to gain insight to help them make real-time decisions. By leveraging AI, franchises can identify locations that are underperforming, optimize their pricing strategies and then fine-tune efforts to try to turn a profit.
Leveraging AI for data-driven insights can improve operational efficiency and increase profitability across franchises. When fast-food chains look into sales data and customer preferences, they can identify opportunities to make pricing shifts and menu offering changes in real-time.
This idea ties back into the idea of predictive analytics. Embracing these AI-driven advertising strategies will help franchisees successfully anticipate market trends and consumer preferences to curate more successful marketing, menu, and product offerings across all of their franchise locations.
Innovation and Trend Analysis with AI in Product Development
Get ahead of your competitors now. Lean into franchise AI solutions to help you analyze market trends, feedback and brand sentiment. Some brands will monitor customer feedback and identify popular trends, introducing new menu items or revamping old ones to align with their customer’s desires.
By looking at what your customers are saying about you online, you’ll be able to help each franchise location innovate to adapt to specific customer expectations and preferences.
A proactive approach to trend analysis will help franchises stay top of mind and increase customer satisfaction, sometimes up to 25%.
Partner With Us for AI Franchise Marketing Solutions
By integrating AI across these areas, franchise brands can enhance efficiency, improve customer experiences, and support sustainable growth. The use of AI in franchising is not just about automation; it’s about making smarter, data-driven decisions that lead to better outcomes for both franchisors and franchisees.
We can help you use AI to:
- Automate your social media engagement
- Run more efficient ads to reach your target market
- Customize content and make it highly personable
- And more!
If you’re interested in our franchise marketing services, get in touch today!
