Franchise Update publishes a report on franchise sales volume every year. The report is awesome. It explains where franchisors’ sales teams are having the most success in lead generation, franchise sales, and more. An interesting thing they report each year is how many of the franchises they survey who don’t have any system for tracking their lead-to-close ratios. These franchisors are simply making decisions blindly and on their impressions of what is happening instead of the actual data.
Don’t be like those franchisors who are running their sales blindly. As a franchise broker, we are involved in the sales process of the franchise. While we do not directly sell, we certainly source and buy leads, which means all franchise brokers should be tracking their lead volume, their lead-to-close ratios, their lead-to-sales stage conversions, and their lead sources. Different brokers have different strengths. One broker may be excellent at networking and terrible at internet leads. Another broker can be the exact opposite. The best way to measure these things is through actual data collection and testing.
We have a great system for our brokers with metrics they can use to rate their success. Make sure you know these numbers for yourself and for the health of your business.