Shared Vision

Penny and Emily gave the opening presentation at the recent National Franchise Conference, sharing insights into what has made the brand so successful.

Caci is one of the most successful home-grown franchises in the country. What does it offer to new franchisees?

One of the things that franchising does well is combine big business expertise and systems with truly personal service from a local operator. It’s a recipe that has certainly worked for Caci, New Zealand’s leading skincare and cosmetic medicine chain. The franchise currently has 78 clinics around the country, with 3 more opening in the next couple of months.

The business model is so successful that 22 of the 54 franchisees have invested in more than one clinic, demonstrating their satisfaction with the brand. And it’s not just ladies, either – 30 percent of franchisees are men.

We sat down with Penny Chapman, Caci’s General Manager, and Emily Stevenson, the brand’s Product and Customer Strategy Manager, to find out what makes the business so successful.

Caci has already opened 11 new clinics this year alone. What is fuelling this growth?

Penny: I think there are a number of reasons. Part of it is demand – with more people seeing themselves on video calls during the pandemic, they became increasingly conscious of how they looked and how they felt about themselves. As an established and trusted brand, Caci is the obvious place to go.

Emily: We’re on a mission to give all Kiwis access to Skin Confidence, which has fuelled the need for more Caci clinics around the country. In June 2020, we attracted investment from private equity company Direct Capital to help us grow and secure locations in key areas, and the franchisees have followed. While many of these are traditional clinics, where the franchisee focuses on customer service and management while employing qualified staff to conduct consultations and treatments, our new mini-clinic model has also enabled us to expand into smaller markets in the regions.

Where are these new franchisees coming from?

Emily: Caci attracts people from all sorts of backgrounds. Our reputation and services mean that we have a variety of customers, and some see the opportunity to open a business of their own. So we have corporate refugees, businesspeople, those with a background in sales, marketing or beauty, and also nursing – that’s not a requirement, but it naturally aligns with the treatments we provide, and is ideal for a mini-clinic.

Penny: We’re also seeing more partnerships joining the business, particularly husband-and-wife teams. And some existing franchisees are buying a second or even third clinic. That’s a really great measure of the value of the business.

Where do you see future growth coming from?

Penny: This year has seen record numbers of enquiries from prospective franchisees, which has enabled us to support some great people into business with us. We’re especially focused on new clinics in the regions, and are continuing to seek new partnerships in a number of areas, but we’re always keen to hear from anyone who shares our passion for what we do.

Emily: We’re also seeing growth from within our existing talent pool – franchisees opening new clinics, and clinic managers who take the opportunity to buy their own business. It’s always a healthy sign when those who know the business inside-out are keen to invest.

Growth isn’t just about opening new clinics. How have franchisees fared during Covid?

Penny: I think our performance during Covid has made so many franchisees keen to invest in new clinics. Covid wasn’t easy for anyone in business, but we were incredibly proud of how our network responded – and kept responding – to the constant changes. Our subscription model kept our businesses operational, and our customers with us.

Emily: Franchisees reaped the benefits of developing long-term relationships. Our customers come to Caci because they trust us to deliver results. During their journey, our customers become part of our family, and it’s so rewarding to see them reaching their skin goals. It creates a bond.

Inflation is a challenge now. Has your subscription model helped with that, too?

Emily: Our direct debit subscription model means customers pay weekly, fortnightly or monthly, and receive treatments based on a personalised plan. This means they are paying a little bit each time instead of making a big purchase decision, making the decision to continue the treatment that much easier. It’s a bit like Netflix – you don’t really notice the money going out after a while, but you get to reap all the benefits. That gives franchisees some security, too – they know they have regular cashflow and committed customers who will keep coming back.

Are there more developments to come?

Penny: Of course! Our competitive advantage is our ability to develop long-term relationships through amazing customer service. This remains at the forefront of everything we do. We’re currently working on ways to use technology to enhance the customer relationship beyond the clinic environment without losing the personal touch.

Emily: There are a number of projects going on to ensure we have the data, tools, processes and systems in place to continue Caci’s success. The key is to be clear on our goals, work out how to get there and communicate with franchisees – and for them to communicate back. After all, the success of our franchisees is what creates a successful brand – and that’s why Caci is such a great opportunity!’

Advertiser Info

Caci

Contact Penny Chapman

P 0-9-320 2614

franchisesales@fabgroup.co.nz

www.caci.co.nz/franchising