The current economic outlook is steady, but as a forward-thinking franchise business, we want to prepare for potential challenges and capitalize on new opportunities by diversifying service offerings and revenue streams to ensure economic resilience.
What’s worked in the past isn’t enough for today’s hypercompetitive franchise industry. Franchisors must continually look for new opportunities to support growth. Identifying and strategically implementing fresh ideas that fit within and complement your existing business model can have a profound impact on a franchise’s stability and capacity for growth, regardless of external economic trends.
Complementary services
Many franchises focus on specializing in a particular service. Being the best at one thing is a great way to build your brand identity and develop a loyal customer base. In order to reach new customers, however, it often pays to explore additional revenue opportunities by providing complementary services.
One of the best ways a franchise can connect with a new audience and boost revenue is to offer more services related to their core offerings. Whatever your company’s primary service is, there are complementary offerings that can easily be incorporated into your existing business. You can capture a greater share of your customers’ spending, build brand loyalty, and establish a reputation for wide-ranging expertise. Successfully adding complementary service offers convenience and value to customers and helps them associate the business with those benefits.
Look for opportunities that offer the biggest potential return on your investment. Start with complementary services that don’t require significant training, new equipment, or updated processes. As you gradually widen the service you provide, additional opportunities for further complementary offerings will open.
Expanded price points
Delivering your service to more people with a wider variety of price points is another effective solution for expanding service. Offering entry-level, midpoint and premium service packages allows your company to appeal to a larger market than if you focus on just one or two of those options.
One reason expanded price points work well is that they can often be implemented without a significant investment of time or money. Creating an entry- or premium-level option to appeal to new customers can be a simple process of reconfiguring your current package.
Like complementary services, expanding the range of price points your franchise offers allows you to enhance your market and brand. More price point options can provide meaningful value to customers while maintaining your company’s well-earned brand identity.
With effective marketing and brand guidance, diversifying your product or service offerings could be a cost-effective strategy to explore what works best for both you and your customers.
Customer value
The key to diversifying franchise service offerings is to build relationships with customers. Increasingly, consumers are looking for more options from fewer providers. Convenient, holistic solutions save them time and money and create the opportunity for long-lasting relationships.
Adding services or expanding the options available should be a way for customers to get more value from your brand. Whether that’s a lower-priced service option than was previously available or new services that enhance your existing offerings, diversification must serve the customer in order to succeed. However you decide to diversify, your new offerings must match your existing brand identity. Diversification must offer authentic service, not just generate new revenue.
As more franchises recognize the benefits of diversifying their services, it will become more urgent for every business to enhance revenue this way. Adopting this strategy now will help your company get the most out of your investment while maximizing the critical market advantage it offers.
Charles Bonfiglio is president and CEO of Tint World ®, an award-winning franchised provider of automotive, residential, commercial and marine window tinting and security film services. With Automotive Styling Centers™ in the U.S. and abroad, each franchise location houses approximately 20 profit centers, ranging from in-store accessory installations to off-site sales and installation of residential, commercial and marine window tinting and security films. To find out more, please visit www.tintworld.com and www.tintworldfranchise.com.