Analyzing your franchise's customer base is critical for determining its market value. A strong understanding of customer demographics, purchasing behavior, and loyalty metrics can directly impact your franchise's valuation by showcasing its revenue potential and market stability. Key takeaways include:

• Track Metrics That Matter: Focus on Customer Lifetime Value (CLV), Customer Acquisition Cost (CAC), retention rates, and Net Promoter Score (NPS) to measure financial health and growth potential.

• Understand Demographics: Use tools like the U.S. Census Bureau or ZIP code analysis to identify high-value customer segments based on factors like age, income, and location.

• Monitor Purchases and Preferences: Analyze transaction data, seasonal trends, and product preferences using CRM and POS systems to predict future demand.

• Build Loyalty: High retention and repeat purchase rates lower risks and increase long-term profitability. Leverage loyalty programs and customer feedback to strengthen relationships.

• Use Data for Valuation: Integrate customer insights into valuation models like Discounted Cash Flow (DCF) to provide a more accurate financial picture.

How to Value a Subway Franchise | Peak Business Valuation

Analyzing Customer Demographics

Getting a clear picture of your customer demographics is essential when fine-tuning your franchise's valuation strategy. It's not just about sales numbers - it's about knowing the people behind the purchases. By understanding factors like age, income, location, and lifestyle preferences, you can make smarter choices about marketing, pricing, and where to grow next. These insights play a central role in shaping your franchise's value, setting the stage for a closer look at the factors that matter most.

Important Demographic Factors to Study

Certain demographic characteristics have a direct influence on customer behavior. For example, age reveals generational spending habits, while income levels shed light on purchasing power and price sensitivity. Where your customers live can shape their product preferences and even seasonal buying trends.

Other factors, like gender, education, and occupation, help refine your understanding of your audience. A franchise catering to college-educated professionals might see faster growth than one aimed at retirees or young families. Similarly, family size and household composition can influence buying decisions.

"Analyzing a franchise location's demographic profile involves understanding the target market, gathering data on population, income, and consumer behavior, evaluating the local area and competition, identifying trends and growth opportunities, estimating market potential, and assessing risks." – Orkhan Ahmadov, Founder Ormado Kaffeehaus

Lifestyle and ethnic trends can reveal untapped markets. Different communities often have unique preferences for products and services, and understanding these distinctions allows you to tailor offerings and spot new opportunities. For instance, in 2020, over a third of potential franchisees had household incomes exceeding $100,000, and nearly two-thirds were married. This suggests that focusing on higher-income, married demographics could lead to stronger franchise performance.

Tools and Data Sources for Demographic Research

If you're diving into demographic research, the U.S. Census Bureau is a great starting point. It offers free Narrative Profiles for cities, ZIP codes, and counties, giving you essential data on population, income, and household details in your franchise's area.

For more specific insights, tools like radius reports and drive time reports can be incredibly useful. Radius reports provide data within a set distance from your location, while drive time reports factor in real-world conditions like traffic and road networks. These tools help pinpoint your actual customer reach.

Platforms like DemographicsBy offer detailed local data, starting at $75. These reports often include median income statistics, which can be more accurate than averages, particularly in areas with significant income disparities.

Social media analytics and sentiment analysis add another layer to your research. They help you understand how different groups engage with your brand online and what sparks their interest. By tracking online mentions and reviews, you can uncover trends that traditional data sources might miss.

Finally, ZIP code analysis tools allow you to dig into hyperlocal demographics. Customer behavior can vary widely within a single city, and these tools help you identify profitable micro-markets and fine-tune your strategies for specific areas.

Finding Your Most Profitable Customer Groups

To maximize your franchise's value, you need to identify the customer groups that bring in the most revenue. Start by analyzing your data to see which demographics are linked to higher spending, frequent visits, and strong loyalty.

Segment customers based on shared traits like age, purchasing habits, or preferences. For instance, do certain age groups spend more per visit? Are specific income brackets more likely to return? Building detailed customer profiles for each profitable segment can help you cater to their needs. These profiles should go beyond basic demographics to include shopping habits, price sensitivity, and preferred communication channels. According to a study by Accenture, 91% of respondents favor brands that offer personalized experiences.

Cross-referencing demographic data with financial performance can reveal surprising insights. Sometimes, smaller customer groups account for a disproportionately large share of profits. By calculating metrics like average transaction value and customer lifetime value for each segment, you can uncover these hidden opportunities.

It's also important to consider variations within demographic groups. The same age group might behave differently depending on location or season. Understanding these nuances helps you allocate marketing resources more effectively and predict revenue shifts.

Keep an eye on demographic trends in your area. Changes in population, income levels, or lifestyle preferences can create new opportunities - or challenges - for your franchise. Regularly updating your demographic analysis ensures you stay ahead of the curve and adapt your strategy as needed.

With 76% of customers expecting brands to understand their needs, focusing on your most valuable demographic groups not only strengthens your franchise valuation but also builds lasting customer relationships. These insights are key to identifying which segments drive revenue growth and long-term success.

Studying Customer Purchasing Behavior

Understanding how customers make purchasing decisions sheds light on patterns that drive revenue. By analyzing these behaviors, businesses can uncover when customers shop, how much they spend, and what keeps them coming back. This insight not only supports accurate revenue forecasting but also strengthens franchise valuation.

Tracking Purchase Patterns and Frequency

Examining purchase patterns helps reveal revenue trends. By analyzing past transactions, businesses can uncover customer preferences, seasonal fluctuations, and other factors that directly impact their bottom line. To gather this data, companies can leverage multiple tools and channels.

Point-of-sale (POS) systems automatically record transaction details, while loyalty programs encourage customers to share valuable insights in exchange for rewards. Mobile apps equipped with geolocation features provide data on customer movements and preferences, and queue management systems offer insights into service preferences and tolerances for wait times.

"Customer data collection methods refer to businesses' systematic processes to gather and analyze information from their clientele. In today's digital age, where data drives decisions, understanding the significance of customer data in business is of utmost importance." – Wavetec

Technology is taking data collection to the next level. Artificial intelligence (AI) can process massive datasets, identify trends, and even predict future behaviors. For example, 47% of businesses are already using AI to manage inventory. These tools help franchises uncover buying patterns that might otherwise go unnoticed.

The impact of effective data collection is clear. Businesses that use customer data effectively report a 73% increase in customer engagement and a 56% boost in customer retention. Identifying seasonal trends - like a coffee shop's morning rush or a fitness center's January membership spike - also helps with cash flow predictions and inventory planning.

These insights also play a vital role in calculating key metrics, such as Customer Lifetime Value (CLV), which is discussed next.

Calculating Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) measures the total revenue a business can expect from a single customer over time. This metric is essential for franchise valuation because it highlights long-term revenue potential and provides a clearer picture of the customer base's worth.

The formula for CLV is simple: multiply the average transaction size by the number of transactions per period, and then by the retention period. For example, a local coffee shop with an average sale of $4.00, where customers visit twice a week for 50 weeks over five years, would have a CLV of $2,000 ($4 × 100 annual visits × 5 years).

For a car dealership, the numbers look different. If customers buy a $30,000 car every five years and remain loyal for 15 years, the CLV would be $90,000.

Three main factors influence CLV across industries:

Boosting CLV directly improves profits. Research shows that a 5% increase in customer retention can lead to a profit increase of 25% to 95%. Strategies like loyalty programs, better onboarding, and consistent engagement help extend customer relationships and encourage repeat purchases.

By accurately calculating CLV, franchises can better estimate long-term earnings, which significantly enhances their valuation.

Monitoring Product and Service Preferences

Beyond purchase patterns and CLV, understanding what customers prefer adds another layer of insight. Tracking product and service preferences allows franchises to fine-tune their offerings and predict future demand more effectively.

POS and CRM systems are invaluable here, as they capture data on top-selling items, peak buying times, and shifting customer interests. This information helps businesses adjust inventory, refine pricing strategies, and tailor marketing efforts.

Social media listening and sentiment analysis provide additional insights. By monitoring online reviews, comments, and mentions, franchises can identify emerging trends and address concerns quickly. Sentiment analysis tools categorize feedback as positive, negative, or neutral, offering a snapshot of customer sentiment.

Customer feedback mechanisms are equally important. Online surveys targeting specific customer groups can yield detailed insights into various aspects of the customer experience. Platforms that aggregate reviews and conduct satisfaction surveys also enable franchises to resolve issues before they escalate.

"Customers have high expectations, little patience, and many options when it comes to who they do business with." – Adrian McDermott, Chief Technology Officer at Zendesk

Advanced analytics tools can process preference data to forecast demand and identify trends. These insights help businesses make smarter decisions about product development, inventory management, and marketing. By understanding which products resonate most with customers, franchises can optimize stock levels, reduce waste, and improve service delivery - steps that lower costs and boost profitability, ultimately enhancing franchise valuation.

Measuring Customer Loyalty and Retention Rates

Customer loyalty and retention are more than just buzzwords - they’re the backbone of a franchise's long-term success. They create steady revenue streams, lower marketing expenses, and make the business more appealing to potential buyers. By tracking these metrics, franchises can gain a clear understanding of their overall health and future potential.

Key Loyalty and Retention Measurements

Certain metrics give a clear snapshot of how well a franchise retains its customers. For example, the Net Promoter Score (NPS) measures how likely customers are to recommend the business to others. A score of 60 or above is considered a strong indicator of customer satisfaction and loyalty.

Another key metric is the customer retention rate, which shows what percentage of customers stick around over a given period. On the flip side, the churn rate highlights the percentage of customers lost during that same timeframe. In the SaaS industry, for instance, a monthly retention rate of 95% (or 5% churn) is often seen as solid.

The repeat purchase rate reveals how many customers return for additional purchases. Across industries, this averages at 28.2%, offering insight into whether customers find enough value to come back.

Customer Satisfaction (CSAT) scores are another critical measure, directly reflecting the quality of service and overall experience. According to research, 73% of business leaders acknowledge a direct connection between customer service and business performance. Additionally, the Average Order Value (AOV) tends to rise among repeat customers as trust builds, showcasing the financial impact of loyalty.

The numbers speak for themselves: a mere 5% increase in customer retention can lead to profit gains ranging from 25% to 95%.

"If you have a good retention rate, then you don't have to work as hard to acquire customers over and over again. Positive brand interactions create a flywheel - when you give your customers a great experience, they'll come back for more and you'll get to understand them better. This customer data then allows you to build more relevant experiences." - Veronica Saha, Head of Analytics @ Zoopla

Reviewing Loyalty Programs and Marketing Campaigns

When done right, loyalty programs can increase franchise revenue by 12% to 18%. However, nearly half (41%) of corporate loyalty leaders struggle to measure the programs’ overall impact. To truly understand their effectiveness, franchises need to analyze customer behavior before and after program implementation.

Techniques like A/B testing - splitting new loyalty members into test and control groups - help reveal changes in purchase habits, such as frequency, average order value, and redemption rates. Meanwhile, cross-sectional analysis compares loyalty members with non-members during the same time period, and longitudinal analysis tracks a single group over time to monitor behavior shifts after joining the program.

It’s also crucial to weigh the direct costs (like rewards, technology, and staffing) against indirect benefits (such as referrals and social media engagement). Research shows that 58% of consumers report spending more due to loyalty programs. Metrics like participation rates, reward preferences, and referral tracking add further clarity. Notably, 70% of consumers say loyalty programs influence their decision to stick with a brand.

Marketing campaigns aimed at retention require a similar approach. Instead of focusing solely on acquiring new customers, these campaigns should prioritize re-engaging inactive customers and encouraging existing ones to increase their purchase frequency. Such efforts can significantly enhance the franchise’s long-term value.

Using Customer Feedback to Improve Retention

Customer feedback is a goldmine for identifying risks and opportunities in retention. Yet, 63% of consumers feel companies don’t listen enough to their input. That’s why systematic feedback collection is a must. When combined with demographic and purchase data, real-time feedback can fine-tune retention strategies.

Feedback can be gathered through structured tools like surveys and ratings, or through unstructured channels such as social media comments and face-to-face interactions. The impact is clear: customers who rate an experience 5 out of 5 stars are more than twice as likely to return compared to those giving 1 or 2 stars. Moreover, 80% of satisfied customers tend to spend more.

Real-time tools like point-of-sale surveys, follow-up emails, and app notifications allow franchises to address issues as they arise. Centralizing feedback from multiple locations can uncover patterns that individual outlets might overlook, enabling corporate-level solutions for widespread challenges.

An effective feedback loop doesn’t stop at collection - it requires action. Customers who see their suggestions implemented are more likely to stay loyal, while unresolved issues can lead to dissatisfaction. Regular updates about improvements based on feedback help reinforce trust. Franchise owners can strengthen this process by monitoring reviews daily, using response templates for quick follow-ups, and conducting random audits to ensure consistent management.

When feedback actively shapes business decisions, it not only strengthens customer loyalty but also provides concrete data to back up the franchise’s value in discussions with potential buyers.

Adding Customer Analysis to Franchise Valuation Models

By diving into customer behavior and demographics, franchise valuation methods can now reflect the real financial impact of strong customer relationships. Customer data transforms valuation from simple revenue multiples into a more precise financial analysis that captures the true worth of these relationships.

Improving Valuation Methods with Customer Data

Bringing customer insights into traditional valuation methods significantly enhances their accuracy. Take the Discounted Cash Flow (DCF) method, for example. Instead of relying on industry averages, integrating real customer behavior patterns makes future cash flow projections far more reliable.

Big data also plays a critical role, offering real-time risk insights by analyzing trends across various sources. This helps identify potential problems before they affect valuation. For instance, rising customer acquisition costs alongside declining retention rates could signal deeper issues that standard financial statements might miss.

Tailored valuation metrics further refine accuracy. Different franchise models call for specific metrics: SaaS franchises might focus on churn rates and customer lifetime value, while retail franchises might prioritize foot traffic and average transaction values. These customized approaches result in more relevant valuations than generic, one-size-fits-all methods.

A striking example of this is Facebook's $19 billion acquisition of WhatsApp in 2014. Facebook based its valuation on user growth and engagement data, projecting future cash flows and discounting them to present value. This data-driven approach justified the acquisition and highlighted WhatsApp's growth potential.

However, implementing data-driven valuation isn't without challenges. A Gartner study found that two-thirds of data and analytics leaders struggle to deliver measurable ROI, with 38% citing skills and staff shortages as key obstacles.

"We need a Rosetta Stone that clearly links and translates technical outcomes to business outcomes. The new Enterprise Value Equation is a new framework created by Gartner to develop a value story by addressing three of our most important and perennial challenges."

• Rita Sallam, Distinguished VP Analyst and Gartner Fellow in the Data and Analytics team

Next, let’s explore how customer relationships can be quantified in financial terms.

Calculating the Value of Customer Relationships

To truly value customer relationships, specialized methods are required. These relationships are a major intangible asset, and their worth can be assessed using approaches like the Multi-Period Excess Earnings Method (MPEEM), which estimates future cash flows directly tied to customer relationships while adjusting for attrition.

Here’s how different valuation methods apply to various franchise scenarios:

The With-or-Without method is particularly useful for isolating the value of customer relationships. By comparing the business’s total value with and without these intangible assets, the difference becomes a clear indicator of their worth.

Real-world cases underscore the value of customer relationships. In 2012, Facebook acquired Instagram for $1 billion, gaining 30 million active users and setting a per-user acquisition cost of $33.33. Two years later, Facebook’s WhatsApp acquisition placed user value at $42 each.

Another example comes from Asian Paints in the 1970s. The company bypassed dealers by directly supplying retailers and used mainframe computers to track inventory and consumer behavior. This customer-centric approach not only eliminated dealer commissions but also significantly boosted its market capitalization compared to competitors.

The financial benefits of strong customer relationships are undeniable. While most franchises sell for 2.5 to 3.5 times their annual profit, those with exceptional customer relationships can command multiples of 8 to 10 times or more.

For franchises aiming to maximize customer relationship value, the focus should be on enhancing brand presence, optimizing operational efficiencies, and showcasing growth potential. Strengthening local customer loyalty, driving revenue growth, and improving system-wide performance are surefire ways to attract higher valuations and secure long-term competitive advantages.

Tools and Professional Help for Customer Analysis

To build on your customer behavior analysis, combining the right tools with expert advice can significantly improve your valuation process. Modern technology provides robust solutions for data collection, while professional consultants bring the expertise needed to interpret that data and turn it into actionable strategies.

Best Tools for Data Collection and Analysis

Customer Relationship Management (CRM) Systems are a cornerstone of effective customer analysis. With over 91% of companies with more than 11 employees using CRM software, the market for these tools is expected to hit $157.53 billion by 2030.

For franchise owners just getting started, HubSpot Smart CRM offers a free version for up to two users. It's user-friendly and includes an AI-powered sales assistant, earning it a 4.0/5 rating from PCMag. Another great option is Zoho CRM, which rivals Salesforce with its rich features and customization options. Zoho is particularly appealing to smaller teams, earning a 4.5/5 rating.

Point-of-Sale (POS) Systems are equally important, handling payments, inventory, customer management, and analytics. The right POS system depends on your franchise's needs:

For example, Square POS is ideal for startups, offering a free plan with flat-rate payment processing. If you're running a restaurant franchise, Toast POS stands out with features like tableside ordering and menu customization. Meanwhile, Lightspeed POS is perfect for retail franchises with complex inventory needs, offering excellent stock management tools.

When selecting a tool, take advantage of free trials to test compatibility with your business. Make sure your chosen system integrates with other platforms like accounting software and email marketing tools. Mobile access is another must-have for real-time customer data.

Artificial Intelligence (AI) is also reshaping customer analysis. AI can automate repetitive tasks, deliver predictive insights, and personalize customer experiences. For instance, Zendesk's workforce engagement management suite, launched in early 2024, combines AI with traditional customer service tools. Notably, Zendesk now only charges for issues resolved autonomously by AI.

While software tools are essential, pairing them with expert guidance can unlock their full potential.

Working with Franchise Consulting Experts

Professional consultants can provide the strategic insights necessary to refine your valuation models. They go beyond what software can offer by interpreting customer demographics, purchasing trends, loyalty patterns, and retention rates. This expertise is invaluable for calculating metrics like customer lifetime value and identifying your most profitable customer segments. By leveraging these insights, you can not only improve customer strategies but also boost your franchise's market valuation.

Franchise Ki is one example of a consulting service that offers free franchise consulting, including due diligence and valuation support. Their team includes experts like Bennett Maxwell, founder of Dirty Dough Cookies, who sold over 300 units in two years, and Liam Chase, who helped a client grow from 13 to nearly 70 units in just a quarter.

The stakes for getting customer analysis right are high. Franchises generating more than $2 million annually can attract private equity offers, and strategic buyers may pay even higher multiples due to their operational synergies. With 71% of consumers craving personalized experiences, precise marketing and customer analysis are critical for maximizing valuation.

Experts like Cliff Fostoff from The Franchise Consulting Company explain their role:

"What I do is I will help you find the best franchise by learning about your goals and your skills and your interests".

Sean T. Ngo, CEO of VF Franchise Consulting, adds:

"Franchise brokers evaluate opportunities by assessing client interests, abilities and finances. Brokers explore industries, attend expos and analyze franchise disclosure documents. Speaking with current franchisees provides valuable insights".

When working with consultants, it's important to clarify your growth goals, ideal franchisee profile, and target markets. Transparency about your brand's strengths and weaknesses allows consultants to craft effective strategies. They can also refine your brand messaging to better connect with local customers and design targeted marketing campaigns to attract high-quality leads.

Consultants also help identify and mitigate risks, ensuring smooth operations and sustainable growth. They can assist with financial adjustments during the valuation process, ensuring customer data is accurately weighted and interpreted.

Kent Craven, a franchise opportunity expert, sums up the ultimate goal:

"The best marketing program for a franchisor is to have franchisees who make a ton of money and like their franchisor".

This success hinges on understanding and serving your customer base effectively, making professional guidance a crucial part of long-term growth.

When choosing tools or consultants, consider your franchise's specific needs, integration capabilities, scalability, and budget. Seek feedback from other franchisees and research the demand for services in your target market. The investment in the right tools and expert advice will pay off when it's time for valuation or a potential sale.

Conclusion: Using Customer Data for Better Franchise Decisions

Understanding your franchise's customer base is key to making smart decisions that can increase business value and fuel growth. The data you collect today lays the groundwork for tomorrow's opportunities, helping you shape a franchise that's attractive to buyers and investors alike.

Key Takeaways for Future Franchise Owners

Start by focusing on three critical areas: customer demographics, purchasing behavior, and loyalty. Demographics help you identify who your customers are, allowing for more targeted outreach. Purchasing behavior sheds light on spending habits, timing, and what drives their decisions. Loyalty metrics, on the other hand, show how likely customers are to return and recommend your business to others.

The numbers back this up: companies that use data well experience 4% higher productivity and 6% higher profits. Data-driven organizations are also three times more likely to see significant improvements in decision-making. These advantages can make your franchise more appealing to potential buyers or investors.

Predictive analytics takes this a step further. By using machine learning to anticipate customer behavior, you can cut customer churn by 15–20%. This proactive approach creates stable revenue streams, which directly add value to your franchise. When you combine strong data insights with intuition, you set your franchise on a solid path to success.

Franchise analytics also unlock operational gains. These insights can help franchisors and franchisees fine-tune menu offerings, plan staffing more effectively, choose the right territories for expansion, and improve franchisee performance. All of these improvements lead to better profitability and, ultimately, a stronger franchise valuation.

Getting Started with Customer Analysis

You don’t need a massive budget to begin analyzing your customer base. Start small by collecting and organizing data through CRM systems, transactional data, and customer surveys. Focus on the essentials: who your customers are, what they’re buying, and how often they come back.

Segmenting your customers based on demographics, behaviors, or preferences allows for personalized marketing efforts. And personalization matters - 71% of people want tailored experiences. Effective segmentation not only boosts customer satisfaction but also strengthens your franchise’s overall value.

Predictive models and automated alerts can help you identify at-risk customers and send them targeted offers. These strategies improve customer experiences and drive growth.

To make informed decisions, analyze data from sales, customer behavior, and franchisee satisfaction. Start with what you already have - sales figures, feedback forms, and other existing data sources. This will give you a clear picture of where your franchise stands.

When you're ready to take things to the next level, expert advice can refine your strategy. Franchise Ki, for example, offers free consulting services that include due diligence and valuation support. Their team, led by Bennett Maxwell (founder of Dirty Dough Cookies) and Liam Chase (who helped grow a franchise from 13 to nearly 70 locations in just a few months), brings hands-on experience in customer analysis and franchise growth strategies.

A strong customer analysis doesn’t just help you run your business better - it can also increase your franchise's valuation when it’s time to sell. Solid data and loyalty metrics demonstrate that your franchise is built for long-term success.

Start with the tools and data you already have, and don’t hesitate to seek expert guidance when needed. With a disciplined approach to customer data, you’ll build a franchise that’s not only thriving today but also positioned for sustainable growth and higher valuations in the future.

FAQs

How does analyzing customer demographics improve my franchise's marketing and valuation?

Understanding who your customers are - details like their age, gender, income, location, and lifestyle - can make a huge difference in how your franchise connects with them. When you know your audience, you can craft marketing strategies that truly click with them. This means your promotions and services feel more relevant, helping to build stronger engagement and loyalty.

But it doesn’t stop there. Demographic data can also help you spot new opportunities in the market, keep an eye on competitors, and even gauge how profitable certain strategies might be. By fine-tuning your products or services to meet the needs of specific groups, you’re not just improving customer satisfaction - you’re also setting the stage for higher revenue and boosting the overall value of your franchise.

What are the most effective tools and strategies for understanding customer purchasing behavior and preferences?

To get a clear picture of customer purchasing behavior and preferences, Customer Relationship Management (CRM) systems like HubSpot and Salesforce are incredibly useful. These tools allow businesses to monitor customer interactions, track purchase histories, and spot engagement patterns. On the digital side, web analytics tools like Google Analytics can reveal online shopping behaviors, while platforms like Segment pull together and interpret customer data from various sources.

Some practical approaches include using customer surveys to gather direct feedback, studying purchase trends to pinpoint popular products, and leveraging data analytics to map out customer journeys. By combining these tools and strategies, franchise owners can gain a deeper understanding of their customers, predict their needs, and make smarter decisions to boost their business’s success.

Why are customer loyalty and retention rates important when valuing a franchise?

Customer loyalty and retention rates play a major role in determining a franchise's value. Why? Because they directly influence how profitable and stable the business is. Loyal customers typically spend more than new ones, and having a strong retention rate ensures steady revenue and long-term growth opportunities.

In fact, studies reveal that increasing customer retention by just 5% can lead to a profit boost of anywhere from 25% to 95%. That’s a big deal. High loyalty and retention rates also reflect a dependable customer base - something that’s incredibly appealing to investors and can significantly raise the overall value of a franchise.