SITE METRICS AND ANALYTICS TO ACHIEVE STRONGER SALES PERFORMANCE AND GROWTH

Mike Bidwell, CFE THE DWYER GROUP President & COO

SESSION PRESENTERS Betsy Delfosse DYNAMIC BENCHMARKING Partner & COO Charles B Nagel QVINCI SOFTWARE CEO Brian Spindel POSTNET President & COO

ABOUT THE DWYER GROUP

• Franchising for over 30 years • 1600 locations (1250 US/Canada) • 7 Franchise Brands

WHAT IS BENCHMARKING

Benchmarking 1. Can be easy 2. Is common place 3. And is powerful

• To optimize Zee Performance: • To establish target KPI’s for franchisees • Financial performance comparisons

USE BENCHMARKING EXTENSIVELY

• To optimize Zor Performance: • Key statistic comparison across our

companies • Budgeting & planning

Betsy Delfosse DYNAMIC BENCHMARKING Partner & COO

THE WISDOM OF THE CROWD

DIVERSE DATA IS BENEFICIAL

ONTRACK™ & FAST TRACK

ANSWER A FEW QUESTIONS

COMPARE YOUR PERFORMANCE

FIND YOUR PEERS

WHAT EVERYONE WANTS TO KNOW…

Revenue

Expenses

Compensation and Benefits

Procedures

Policies

ACCESS

https://benchmarking.franchise.org Betsy Delfosse

BetsyD@dynamicbenchmarking.com 603-745-8645

Dynamic Benchmarking www.dynamicbenchmarking.com

Charles B Nagel QVINCI SOFTWARE CEO

www.qvinci.com

QVINCI

A highly secure online financial dashboard and reporting solution

Consolidates and benchmarks 1,000s of locations

Connects to QuickBooks or uses manual entry methods

Automates early warning financial alerts via email

Allows franchisees to anonymously compare themselves to peers

WHAT IS QVINCI AND WHAT DOES IT DO?

View reports from any internet enabled device

Consolidate and compare all your units’ financials instantly

Identify and address problems early while they are still small

Compare your locations to the best performers in the concept

Monitor financial targets via automated email alerts

FRANCHISEE BENEFITS

Qvinci does not collect fraud sensitive data such as social

security, credit card or bank account numbers

Other franchisees cannot see your financial data

Your data is not sold or transmitted to outside parties

Qvinci uses a 4,096 SSL socket to secure all data uploads

Qvinci is PCI and Sas71 compliant

WHAT ABOUT DATA SECURITY?

THE SOLUTION FOR FRANCHISORS

COLLECT FINANCIALS FROM 1000S OF LOCATIONS

MAP DISPARATE CHART OF ACCOUNTS

INTO YOUR STANDARD FORMAT

FRANCHISOR AND FRANCHISEE DASHBOARDS

COMPARE YOUR LOCATIONS TO BEST PRACTICE

www.qvinci.com

QVINCI

Brian Spindel POSTNET President & COO

ABOUT POSTNET

• Been franchising for 20 years • 700+ locations in 8 countries • Used benchmarking extensively over the past

5 years for: – Top Line Sales/AUV, Ranking, Transaction Counts,

Average Transaction, Group Comparison, etc. – Financial/Profitability, Expenses as a % of Sales,

Gross Profit Margin, etc. – Marketing/CRM, data collection, customer

segmentation by RFM, behavior modeling, etc. • Have developed robust dashboards regularly

monitored by franchisees

USING BENCHMARKING

How would you rate your company’s use of

benchmarking?

STAGE 1

• Still collecting information manually and entering it into a spreadsheet or simple database.

• No comparative data tools or dashboards. • Analysis done on individual spread sheets. • Little sharing of information and

benchmarking amongst departments and/or peer groups.

STAGE 2

• Collecting limited information electronically weekly or monthly.

• Basic franchisee level reporting and dashboard functionality on top KPIs.

• Automatically generated analysis and graphs.

• Moderate benchmarking internally.

STAGE 3

• All data available electronically daily or hourly. • Full HQ and franchisee level dashboards on all

sales and customer KPIs. • Various visual tools used to make information

more understandable and meaningful. • Collaborative tools make it easy to share

information with stakeholders. • Benchmarking used throughout the

organization for constant improvement.

INTERNAL STEPS

• Develop robust data pipeline - Consistency/accuracy - Timely • Identify Key Performance Indicators (KPIs) • Define best comparative data • Create benchmarking process • Build or Contract Technology to Disseminate

Information

EXTERNAL STEPS

• Communicate plans to franchisees - Privacy Concerns - Agenda/Ulterior Motives • Define benefits and get buy in from

Franchisees • Perform- crawl, walk, run… • Expand- franchisees experience the benefit

and power of performance metrics

CASE STUDY- BENCHMARKING CRM

• Challenge- go from a pure transactional model to a relationship model

• Needed better/more customer data collection and accuracy at the POS

• Needed active customer feedback with system wide benchmarking

• Needed customer segmentation model to benchmark against system leaders

OUR PLAN

• Learn what we don’t know • Improve data collection at the POS and HQ

levels • Put a system in place to inform and

motivate Franchisees using benchmarking • Use information to grow our and franchisees

business

WHAT WE LEARNED

• Very little customer data being collected by franchisees

• No importance placed on accuracy- data hygiene a problem

• Customer data generally not linked/attached to transaction history

• No real understanding of customer behavior or segmentation

DATA COLLECTION/ANALYSIS

• Worked with POS vendor and developed internal system of customer data

• Needed to measure and compare New Customers to file (“capture”) and their behavior (“attachment” to transactions)

• Used CRM expert to develop “buckets” to segment customers based on RFM scores

CAPTURE AND ATTACHMENT

SEGMENTATION BENCHMARKING

ACTIONABLE DATA

BENCHMARKING SATISFACTION

CRM BENCHMARKING BENEFITS

• Reverse engineer “elite” customer demographics to identify and approve store locations

• Better utilize the NAF and more effective local advertising by targeting customer groups with “elite” characteristics

• Franchisees more engaged in understanding customer base and understanding what they need to do to grow their businesses