Data Analytics and Franchises

. June 18, 2019

In a franchise system, it’s essential that there is a strong communication pathway. And that includes a pathway for communicating insights gained from marketing measurement, data and analytics. In this DAC exclusive video, Doug Zarkin, CMO of Pearle Vision, explains how Pearle Vision sometimes spots gaps and uncovers opportunities even though the data itself isn’t always productive. Pearle Vision is a brand that is 80 percent owned by doctors and opticians. The company can understand from the data how it is doing based on the profitability of individual franchises.

Listen in as Doug explains how data and analytics are helping to drive successful growth for the company’s franchisees.

Video Transcript

Doug Zarkin: In a franchise system, it is critical that there is a strong communication pathway. Now the data that you gather from that communication pathway isn’t always productive. But oftentimes that allows us to really go in and deconstruct their business model to understand where there might be a gap or an opportunity.

We are a brand that’s nearly 80 percent owned by doctors and opticians. We know based on their profitability how we’re doing. There is nothing better in terms of real time feedback than hearing from a licensed operator who’s doing extremely well or conversely a licensed operator who has been so struggling. That gives us real insight that we can begin to go deeper into for the why and then the “what are you going to do about it”.

The culture of Pearle Vision has to be one where we’re listening in order to lead. Listening means understanding what they believe the truths are in their individual location. They may believe they’re doing an amazing job in delivering genuine eye care. We can approach them with some rational data points to really manage the way in which the perception of our doctors are calculated. We may be able to go to a franchisee and say: “Listen, I know you believe that Dr. Jeff is doing a great job but let’s look at the reviews and ratings that Dr. Jeff is getting”.

Be able to bring those truths to bear to help change the conversation from being you as the license or you as the franchise or not doing a great job to what do I need to do as the ambassador at the neighborhood level in order to deliver the kind of results that I aspire to have for my individual patient.

We asked ourselves is the flow of information coming at a level that is meeting the requirements that we need, in order to provide the leadership and guidance that quite frankly our franchisees need. The answer was No.

One of the initiatives that we have actually begun is really a managed supply chain model where we’re actually much more involved in driving what product is on the floor that allows us to understand retail terms, that allows us to be able to say OK in this market your average household income is one hundred fifty thousand dollars. There’s a similar market in another state that has a similar demographic. They have more Ray-Ban, they have more Oakley. We can adjust the mix of product to better provide the product that they need to complete the transaction. And it’s actually really driving successful growth for our franchisees.

Category: Basics, Case Studies, Organizational, Videos

About the Author ()

Daniel Kehrer is Executive Editor of the ANA Data Analytics Center (DAC), a leading voice of thought leadership and education in marketing measurement, data and analytics. He is also the Founder of BizBest Media Corp. and previously headed marketing at MarketShare LLC, an advanced marketing analytics technology company.

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