how do you - franchise.org · franchise update’s 2009 franchise development report • 148...
TRANSCRIPT
![Page 1: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/1.jpg)
![Page 2: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/2.jpg)
How Do YouStack Up on
Lead Generation & Franchise Sales?
![Page 3: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/3.jpg)
Panel of SpeakersSteve Olson - Publisher, Franchise Update Media Group
• Franchising.com• Franchise Update Magazine• Area Developer Magazine• 27 Years in Franchising• Sr. Vice President, It’s a Grind
Jeff Sturgis – Vice President, Fantastic Sams• Oversees Franchise Sales, Real Estate, Store Development• Over 15 years in franchise development (FOCUS Brands, US Franchise Systems)
John Wuycheck – Vice President, Kahala Franchise Corp.• Responsible for franchise Sales and Recruitment for 12 Brands• Led the development team for Cold Stone Creamery adding 1,600 units over a 7 year
period
![Page 4: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/4.jpg)
Franchise Update’s 2009Franchise Development Report
• 148 franchisors representing 57,000 units• 6,700 company-owned units• 39,700 franchise units• 10,800 international units
• Plans for growth in 2009• 8,100 more franchise units (6,300 zees)
![Page 5: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/5.jpg)
Industry Categories• Automotive• Baked Goods• Beauty-Related • Building & Construction• Business-Related• Child-Related• Cleaning & Maintenance • Computer Prod. & Services• Decorating & Home Design• Fast-Food Restaurants • Health & Fitness
• Home Services• Personnel & Staffing • Pet-Related• Real Estate • Restaurants (sit-down)• Retail Food• Retail Stores• Senior Care• Sports & Recreation• Other
![Page 6: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/6.jpg)
Recruitment Budgets
$145,000$120,000$100,000$138,000$138,000Median
$282,000 $153,000 $165,000$175,000 $198,000Average
20052006200720082009
![Page 7: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/7.jpg)
Where the Money Goes
23%
10%
9%
18%
40%
12%
8%
11%
18%
51%
10%
12%
16%
18%
45%
9%
11%
12%
20%
48%
10%
13%
13%
17%
47%
Other
Public Relations
Trade Shows
Internet
20052006200720082009
![Page 8: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/8.jpg)
Top Sales Producers
Other 7%14%11%4%15%
Print 6%4%2%4%6%
Brokers 29%9%21%14%16%
Referrals 13%27%21%37%28%
Internet 45%46%45%41%35%
20042005200620072008
![Page 9: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/9.jpg)
Lead Performance• 34% reported leads up
• 18% reported leads the same
• 48% reported leads down
![Page 10: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/10.jpg)
Is Lead Quality Up or Down?
• 26% report quality is up
• 34% report quality is the same
• 40% report quality is down
![Page 11: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/11.jpg)
Sales Performance• 7% reported exceeding 2008 goals
• 21% reported meeting goals
• 72% reported below goals
![Page 12: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/12.jpg)
Franchisors that are Exceeding or Meeting Goals
• 39% food category
• 35% service category
• 13% retail food
• 13% retail non-food
![Page 13: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/13.jpg)
• Multi-media budgets -- 32% online, 22% print, 17% PR, 15% shows, 14% other
• 91% planning same or higher 2009 expenditures
• 74% have $100K + investment requirements
• Pay higher salaries to senior sales exec/managers
• Pay higher broker commissions
Franchisors that are Exceeding or Meeting Goals
![Page 14: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/14.jpg)
Broker Networks • 50% use broker networks
• 85% have closed deals
• 8% median of applications result in sales
• Median of 8 sales
• $13,000 median broker commission
![Page 15: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/15.jpg)
Measuring Costs
• 70% track their cost per lead
• $50 median cost per lead
• $80 average cost per lead
![Page 16: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/16.jpg)
Measuring Costs
• 57% track their cost per sale
• $7,000 median cost per sale
• $8,200 average cost per sale
![Page 17: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/17.jpg)
Performance Alert• 25% less referral sales
• $7 higher median cost-per-lead
• $1,500 higher median cost-per-sale
• 2009 median recruitment budget the same
• Growing sales increase from “other” lead generation sources
![Page 18: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/18.jpg)
Sales Research
• 36% employ qualifiers to screen leads
• Of these qualifiers, 54% receive base + commissions
• 53% of sales personnel work remotely in home offices
![Page 19: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/19.jpg)
New Online Research
• 32% track unique visitors to their Web sites that convert to leads
• 53% track unique visitors that go to your franchise request form and convert to leads
![Page 20: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/20.jpg)
New Sales Research
• 60% report referrals have the highest close ratios of all lead generation sources
• Only 38% provide incentives to franchisees that refer prospects that buy their franchise
![Page 21: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/21.jpg)
New Online Research
• 58 of 148 surveyed have placed online ads/videos/press releases on social or business networks, blogs, YouTube, Craigslist, etc.
• 7 franchisors have made sales: 3 on Craigslist, 1 from online press, other sources not specified
![Page 22: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/22.jpg)
Online Web Site Shopping
![Page 23: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/23.jpg)
Search Engine Market Share
*Nielson Online, July 2008
Others3.9%Ask
2.0%
AOL4.6%
MSN11.9%
Yahoo!17.4%
Google60.2%
Yahoo!
MSN
AOL
Ask
Others
![Page 24: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/24.jpg)
Driving Traffic to Your Sites
• How many of you have found purchasing keywords is worth the investment?
• How many of you believe you are successfully optimizing your Web sites?
![Page 25: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/25.jpg)
Performance Alert• How many of you believe you are successfully
optimizing your Web sites?
• Only 39% of franchisors are listed on Google’s first page using your “industry description with franchise”
• Over half of these 39% first-page searches were linked to the franchise home page, not to the franchise opportunity page
![Page 26: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/26.jpg)
Web Site Usability• 5 categories
• Franchise content accessibility• Site readability• Clear navigation• Effective use of technology• Overall site presence
• Ratings• Excellent, good, fair & poor
![Page 27: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/27.jpg)
Key Content• 6 categories
• Company history• Benefits of franchising• Available locations / territories• Investment required• Frequently asked questions • Testimonials• Clearly defined process
• Rating• 5 (best), 4 - 3 (average), 2 - 1 (minimal)
![Page 28: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/28.jpg)
Best in Class – Navigation Where We AreWhere We Are2 Levels of
Navigation2 Levels of Navigation
![Page 29: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/29.jpg)
Best In Class – Questions
Expanded Question
Expanded Question
Condensed Question
Condensed Question
![Page 30: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/30.jpg)
Best in Class - Timeline
Step 1 Detail
Step 1 Detail
![Page 31: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/31.jpg)
2008 Top Websites Surveyed
• Great Clips
• i9 Sports
• BrightStar Healthcare
• Multi-Brand – Yum! Brands
![Page 32: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/32.jpg)
Telephone Mystery Shopping
![Page 33: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/33.jpg)
Telephone Mystery Shopping: Response to Inquiries
• How important are phone leads to you?• What is more important to you?
• Internet leads• Phone leads• They are the same
![Page 34: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/34.jpg)
Telephone Mystery Shopping: Response to Inquiries
• 23% of sales staff were available for our first call
• 60% left messages for sales staff – only 42% returned calls within 48 hours
• 17% were directed to a Web site, were told to call back later, got no answer, or were disconnected
![Page 35: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/35.jpg)
Telephone Mystery Shopping: Qualification Process
• Enthusiastic 83% Yes • Controls conversation 83% Yes• Takes name 24% No• Takes address 48% No• Takes telephone no. 45% No
![Page 36: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/36.jpg)
Performance Alert• Takes e-mail address 40% No
• Qualifies experience 40% No
• Qualifies finances 46% No
• Qualifies start time 67% No
• Presents next step 24% No
![Page 37: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/37.jpg)
Web Site Mystery
Shopping
![Page 38: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/38.jpg)
Web Site Mystery Shopping: Response to Inquiries
• 70% of franchisors never called the qualified lead from their franchise Web site
• 44% never responded to the qualified lead by e-mail
![Page 39: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/39.jpg)
Application Submittals*
*eMaximation Research
1%2% 1%
16%
26%
54%
1: 24 hrs
2: Week 1
3: Month 1
4: Month 2
5: Month 3
6: After Month 3
![Page 40: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/40.jpg)
Improve Follow-up & Win!• Monitor & shop your sales team. 66% don’t. • Employ a lead qualifier. 36% do. • Outsource to a lead follow-up service. • Use phone roll-overs, after-hours answering service.
![Page 41: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/41.jpg)
Franchise Update’s AnnualFranchise Development Report• 148 franchisors representing 57,000 units
• 6,700 company-owned units• 39,700 franchise units• 10,800 international units
• Order information at franchiseupdate.com/afdr
![Page 42: How Do You - franchise.org · Franchise Update’s 2009 Franchise Development Report • 148 franchisors representing 57,000 units • 6,700 company-owned units • 39,700 franchise](https://reader033.vdocuments.net/reader033/viewer/2022053002/5f0634027e708231d416d012/html5/thumbnails/42.jpg)
How Do YouStack Up on
Lead Generation & Franchise Sales?