If you’re looking to develop more franchises, you’re likely searching for information that can tell you whether your sales, marketing, and other tactics are working for or against your goals. While financial statements, FDDs, and other business reports address the company’s profitability over time, how do you measure other aspects of progress in franchise development? That’s where key performance indicators (KPIs) can help.
Franchise KPIs can measure and track your company’s progress toward a specific goal and can help gauge long-term franchise development. These metrics quantify your company’s performance by giving you a framework that can be assessed, whether against your own targets or industry standards and best practices. These are especially important for franchise development, as you will need to have performance indicators in mind when you bring on new owners, adjust campaigns, or expand into new markets.
The key to making KPIs work for your business is to choose the right metrics to measure. While it might seem like a good idea to establish broad-minded KPIs like “increase franchise sales” or “strengthen brand consistency,” focusing on specific metrics that are most impactful to your business is more critical to keeping you and your team aligned on the journey to achieving those goals.
IDS features a dedicated, award-winning sales team that can help you with all aspects of your franchise development plan. We’re experts at bringing data analytics and marketing together, so we can help you track your success and get your message out there by utilizing data and content effectively. No matter your brand or industry, IDS is there to help you qualify and nurture your leads, so you can focus on running your business.
Although similar to objectives and key results (OKRs), KPIs, or “health metrics,” can tell you how your company is progressing toward set objectives. While both types effectively measure metrics, OKRs serve as broader and more ambitious goals with a flexible timeline; these big-picture ideas tend to speak toward achievements. KPIs are more specific and ideal for scaling.
KPI reporting tools can help you track and assess your business’s performance against set targets. Most businesses utilize KPI reporting tools to track impactful metrics while filtering out irrelevant data. This will allow you to easily see your business’s performance data in charts, graphs, and tables and provide a snapshot of your company.
KPIs enable you to keep everyone in your company aligned by maintaining employee accountability and allowing managers to adjust. At IDS, we use data analytics to analyze your initial performance, help you stay ahead of the competition, measure your impact, generate leads, and more.
“Most franchise development clients are looking for leads, not just any leads – quality leads. A quality lead can be any of the following:
To get a step further, clients are looking at what the cost of those leads are, how far they move down the funnel, and the cost to convert them to a franchisee.”
– Katie Knapp, IDS Client Success Director
KPIs can be applied to any aspect of your business, but they are especially important for franchise sales. Sales executives can use KPIs to measure their market model, sales strategy, and salespeople. By monitoring sales metrics, you’ll gain insight into your company’s performance and track progress while awarding incentives and identifying strategic issues.
Some valuable KPIs that franchise sales departments might find helpful include:
There’s a lot to consider regarding which KPIs your company should utilize. You’ll want to determine your goals and your team, then set your targets. These targets can be based on many factors, including your company’s prior performance, industry standards, and more.
For franchise sales KPIs, it’s a good idea to begin with who, when, and why. By identifying who is managing the KPI, you’ll have a go-to person to track and report on progress—identifying when will give you a timeline in which to reach your targets. And finally, by identifying why, you’ll reinforce your goals and keep your team aligned.
The industry in which you work and your company’s business model can influence the KPIs you use. KPIs vary from company to company, department to department, and team to team. Some common types of KPIs include quantitative (numerical), qualitative (opinion), leading (future performance), or lagging (past results).
When considering which KPIs franchise sales executives should care about, here are some ideas for KPIs:
Other KPIs that could prove helpful include:
As you manage the franchising process from start to finish, you’ll want to maintain your brand and company standards while marketing, creating, screening, and tracking potential franchise owners. KPIs are not only a great way to qualify leads and cultivate prospects but also to establish procedures and programs for following through on leads. This will help you build and maintain a strong rapport with prospective franchisees and serve as their liaison throughout the franchising process.
IDS is your partner for comprehensive sales management that incorporates your franchise KPIs to tailor a custom strategy to optimize your current efforts. We’ll help you analyze your leads and attract higher-quality prospects so you and your company can achieve your goals.
Are you interested in learning more about IDS’ digital marketing services for franchise KPI and how we can improve your strategy and help you grow your business moving forward? Get in touch with a member of our team today and let's get the conversation started!