Franchise Business Drivers Analysis
How it Works
Ironside’s Franchise Business Drivers Analysis identifies key performance factors influencing franchise store performance or revenue value of a customer. Using the most important driving factors, it additionally creates clusters or segments of similar stores or customers to enable targeted business actions. DataRobot is used for insights visualization and machine learning modeling.
This solution introduces a degree of supervision to the unsupervised method of clustering. Based on these clustering results, businesses can develop operational protocols that seek to influence only the most important drivers of business outcomes, ensuring the most efficient data-driven decision making.
- Visualization of business drivers on revenue generation
- Clusters of similar types of revenue generating entities (stores or customers)
- Recommended actions for business to improve the store performance
Detailed artifacts and metrics
About the Partner
Ironside has extensive experience and expertise in franchise business model with multiple stores and/or a high volume of consumers. Ironside also possess strong machine learning and cloud technical talents to implement machine learning solutions. Here are some technical innovations by the team:
- Automated cluster discovery package (No need to dictate number of clusters or cluster density parameters before running clustering algorithms )
- Automated F-Testing to determine which factors/features truly differentiate clusters/segments from one another
A major national hair salon franchise needed to understand why some of their store locations were performing well and some were having challenges. It was known that a variety of different factors and variables were potentially influencing store performance, but they needed to know the significance of each in order to prioritize operational improvement initiatives.
Ironside performed a business drivers analysis to examine factors including customer appointment no-shows, customer walk-in frequency, day of the week variations, holiday weekends, and more. The insights derived from this analysis led to specific plans to address the franchise labor scheduling practices, as well as salon-floor role management to improve store efficiency.
Ironside leverages the capabilities of DataRobot when developing a business drivers analysis, using advanced machine learning algorithms to get actionable insights from complex data. This solution measures and ranks the important factors driving outcomes as well as identifying categories or groups of revenue generating entities to enable targeted actions.