Retail Franchising, Increasing Your Chances of Success (Pt IV)

Date AddedNovember 29, 2009 03:14:30 PM

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Continued from: Retail Franchising, Increasing Your Chances of Success (Pt III)

Always remember that as a franchisee you are not only a business owner, you are also a leader. Never assume that each of your team members will perform well just because they have the right kind of personality. Each staff member comes from a totally different background with a distinctive set of personal values and diverse psychological needs. Some need discipline; some need encouragement; some need support; and some need a challenge. It is your task to lead them so that they become a caring and consistent team; it is your job to help them grow and excel. That's what great business owners do - they are passionate about creating a unified team. And never forget that a single staff member can, on their own, destroy all the hard work that others have done. You don't get many second chances in business.

But, take note: not only must you set clear boundaries of behaviour for your staff, but you must model it yourself. If staff members, for example, see you walking out of your franchise business with a piece of merchandise without properly recording it (or giving a freebie to a customer), don't be surprised when they do it. This sort of problem will not only erode trust, but it will quickly erode profit.

And here's another secret of great business owners. They not only develop a two-wayrelationship with a customer but they practise the art of surprise. Surprising a customer, as in giving them a totally unexpected benefit or service, is another way of rewarding loyalty, of saying thank you, of embedding the relationship with your franchise deeply into the customer's psyche. It may be unanticipated for the customer but, on your part, it can be carefully planned. For example, if your business has a relatively low unit sale value per customer (eg a coffee shop) you could offer a 'bonus' card saying Thank you' for their loyalty and offering a free cake or biscuit on their next visit. Don't pre-announce this offer; make it a surprise. And be sure you personalise the offer (using their name if possible), always handing the card with a warm handshake and smile. If, on the other hand, your franchise has a much higher average unit sale value, do a deal with your local florist or cafe, and pre-package your surprise offer. If you negotiate as well as one business owner I know, it won't cost very much.

One automobile dealer friend of mine, celebrates the purchase of every car by providing the buyer with a meal voucher for two at a local restaurant.
By offering a guaranteed number of clients to the restaurant, he negotiated a greatly discounted deal.
Six weeks after each car sale, my friend sends flowers to the new car owner. The florist provides these flowers for free, on condition that a 'frequent-flower' card is included, and 12 months later, my friend offers to detail the car at zero cost to the owner. No wonder his business is now talked about all over the country. You can do it too; it just takes a little ingenuity.

Continued at Retail Franchising, Increasing Your Chances of Success (Pt V)