The opinions expressed by (*3*) authors are their very own.
The rise of artificial intelligence (AI) in the franchising world may appear to be a relatively latest phenomenon, but it first began to have a noticeable impact on the industry five years ago. Since this turning point, AI technologies have rapidly advanced in areas resembling machine learning, data analytics, and language processing. And so, like many other industries and business sectors, franchise-related firms have begun to take notice.
From an implementation standpoint, it made complete sense to leverage AI’s ability to streamline operations, improve customer support, and significantly improve decision-making. Today, increased data availability and the drive to find more efficient, scalable solutions have made artificial intelligence a cornerstone of the franchise industry’s digital transformation.
Below is an in-depth look at the commonest uses of AI in the franchising industry, how brands are increasingly leveraging the technology to their advantage, and three practical ways these technologies are positively impacting each franchise growth and workflow processes.
Common applications of the spread of artificial intelligence
Most, if not all, of the hundreds of franchisors have found out apply AI to enhance operational efficiency and workflow processes. One of the commonest applications could be found in customer support automation. Brands have began experimenting with their very own AI-powered chatbots and virtual assistants to handle basic queries and schedule appointments for their franchisee networks. This solution is inexpensive than a call center and exponentially reduces the human workload. And because the answers are so quick and accessible, everyone wins.
Predictive analytics is one other common application that permits a franchisor to research big data, consumer behavior, market trends and operational metrics – all of which improve sound decision-making processes. Artificial intelligence can now predict favorable locations for franchise expansion, optimize inventory levels across the franchisee network, and even discover ideal candidates. Another key area impacted by artificial intelligence is the personalization of selling campaigns.
Again, customers could be analyzed and targeted using the large data sets available, in response to their shopping habits, online behavior and individual preferences. This has a noticeable impact on increasing sales and customer loyalty.
How franchise brands use artificial intelligence
Brands in the franchising industry are increasingly finding ways to leverage AI to distinguish themselves from the competition, as these three specific examples illustrate:
- Improved decision making: Using AI-powered analytics, brands are now making smarter decisions about where to open latest franchise locations, what products to advertise and best optimize their supply chains – all resulting in improved profitability and efficiency
- Operational performance: Because AI is so effective at automating routine tasks like inventory management, customer support and scheduling, franchises are operating more efficiently, with less risk and lower costs. From a staffing perspective, these newfound efficiencies increasingly allow employees to focus their attention on higher-value activities
- Improving support for franchisees: Automation and artificial intelligence tools help franchisors provide higher support to franchisees by offering real-time data-driven insights and recommendations. This can include every thing from marketing strategies to operational adjustments, all of which help franchisees succeed
Three ways AI is improving franchise development and workflow processes
Artificial intelligence is not only useful in streamlining and automating big data, but also provides revolutionary advances in each franchise development and workflow processes:
- Improved market evaluation: Determining the optimal location of a stationary store, analyzing market trends and accessing data on consumer behavior at the local level develop into exercises in predictive analytics. With these benefits, potential franchisees can make much more informed decisions as they progress through the sales process
- Personalized customer strategies: AI-powered tools and resources are used to develop highly personalized strategies for potential franchisees. Franchisee performance metrics, localized market demand evaluation and on-demand business data allow consultants to tailor strategies that higher suit individual clients
- Lead generation: Artificial intelligence is increasingly improving lead generation workflows, identifying quality prospects much more effectively. Many brands are also experimenting with predictive analytics to find out which candidates are more more likely to proceed in business (and even succeed) as franchise owners
Despite all the technological improvements that artificial intelligence is bringing to the franchising industry, there are still concerns about its impact on employment and the workforce. But there are two ways to look at it. On the one hand, AI-based automation can reduce the need for certain roles, especially for administrative or repetitive tasks.
However, this alteration also creates opportunities for latest roles focused on managing, implementing and optimizing AI systems. There is a growing demand for expert employees who can collaborate with artificial intelligence, interpret data and use insights. Additionally, AI can increase job satisfaction by enabling employees to focus on more meaningful work relatively than routine tasks. Overall, while AI may reduce demand for some traditional roles, it is also creating latest jobs requiring different skills.