Embrace the data!
We can’t emphasize the wisdom in this enough: metrics will show you the way as you develop your franchise.
You probably know that already – but which are the right metrics? For example, you’re probably looking at your leads and may even be impressed with how many email addresses you’ve collected with your new content offer. And that’s all well and good; you can’t get sales without leads, after all. But are you looking at how many of those leads turn into actual franchisees? Leads aren’t sales.
Here are the top 3 metrics to consider when evaluating your franchise development marketing:
Your cost-per-deal is a crucial metric, and we were shocked to learn in this 2017 report that only 57% of the franchisors surveyed were tracking this!
When you sign a new franchisee, make sure to determine how much it cost you to sign him. Naturally, if your franchise costs a buyer only $100,000 to purchase, you’ll be extremely interested to learn how you might lower your cost-per-deal. If your franchise costs $500K to purchase, a $15K cost-per-deal could well be something with which you’ll happily live!
Compared to inbound marketing (coming in at $7-15K), the average franchise broker commission that franchisors paid was $20K, a rather hefty cost-per-deal.
2. Close rate per marketing channel.
We love this one. Why? It’s important to know which channels – emails, PPC, blogs, webinars– work best. Spend your time, effort and energy on the channels that find you leads who actually buy!
For example, HubSpot writes, if SEO is bringing in the most leads, but social is getting you more franchisees, the value of your social media is far higher than your SEO efforts. Not that you should stop optimizing your site for search engines, but in this scenario you may want to spend more on social and less on SEO.
3. Monthly unique visitors (and your monthly conversion rate).
How many unique visitors come to your site each month? Unique visitors are the number of “distinct” individuals who visit your site’s pages, no matter how many times they visit each month. To ascertain your monthly conversion rate, divide the number of leads generated by the number of unique visitors. If you’re making changes to your strategy or channgels, this is a simple way to monitor the effects of your continued efforts.
* Bonus! Here are a couple more tips to help you boost your franchise development marketing:
Qualified leads: Just because someone downloads a free report doesn’t mean he’s serious about purchasing any franchise, let alone yours. You need to work to attract serious and qualified potential franchisees. Lead nurturing and lead scoring can help get you there.
Marketing automation: If you’re not already doing so, get yourself acquainted with a high-quality marketing automation platform (HubSpot comes to mind – that’s what we use)! A platform like this – which provides great analytics in one place – may show you that your eventual buyers came from channels and strategies that cost the most per lead… but if those leads turn into franchisees, that marketing effort is the keeper!
Inbound marketing: Ingenex Digital is a Detroit-based inbound marketing agency with a focus – and considerable success – in helping businesses market their franchise opportunities. We are a Hubspot Inbound Marketing Gold Agency Partner and, as such, we use the full power of the marketing automation platform to find highly targeted leads – and convert them into your franchisees.