The last year has been full of learning in many spears of business and all kinds of industries. In our last two parts, we found ways to engage your franchisees in budgeting and planning for the upcoming year. Additionally, we learned about franchise technology fees and how to maximise technology as a resource. This time, on how to prepare your franchisee for success? – Part 3, we can dig into ways to boost and track franchise sales leads in the year ahead.
Compared to last year, there has been an increase in the overall leads generated in the businesses. It is important to focus on generating quality leads and following up with the leads to achieve your desired outcomes.
It has been found that more than 70% of the franchise leads never received a call. One of the most important KPIs for franchise sales is the initial response time. Timing can be crucial for closing a sale. About 85% of the leads that resulted in sales were those that were responded to in 4 hours or less from the enquiry. Thus proving that speed to the lead is critical.
Another important KPI is the cost per lead and cost per sale by source. Moreover, with an efficient franchise sales CRM, you can track your marketing spend, and the technology will generate your costs as leads populate and deals close. Metrics can help you do more of the things that are working and avoid the things that aren’t.
The two important referral sources: 1) franchise referral consultants (brokers), and 2) organic referrals (family, friends, associates, customers) are both important.
In the FranConnect Franchise Sales Index report from the first half of 2020, we found that franchise referral consultants (brokers) were the only lead source that saw an increase above pre-Covid results, coming in at 5.3%, which equates to an average of about 20 leads per sale. The second-highest source of leads that became sales were organic referrals, with a lead-to-deal ratio of 4.9%, translating to slightly more than 20 leads per sale. Those franchise referral consultants produced 21% of all deals, and referrals represented 17% of sales, consistent with Q1.
In the world we live in currently, there are more and more reliable leads generated through referral marketing than traditional advertising. For instance, personal recommendations dominated with an 81% vote of confidence, compared with consumer online opinions, which trailed at 58%. You could increase the potential franchisee referral generation by adding a referral program in place that capitalizes on giving recognition. Create an event for all winners to celebrate, where they could bring their family and enjoy bonding with the other successful franchisees. Develop and implement a plan for boosting, pursuing, and tracking leads to succeed through the year ahead.
Get to know who are the industry key players, visit our Interview of the Week page.
To stay updated, visit our Franchise News section.
To learn more, visit our Franchising Tips section.