2017 AFDR Highlights: Measuring Cost Per Lead & Cost Per Sale

2017 AFDR Highlights: Measuring Cost Per Lead & Cost Per Sale

2017 AFDR Highlights: Measuring Cost Per Lead & Cost Per Sale

This is the sixth in a series of highlights from the 2017 Annual Franchise Development Report (AFDR). The 2017 AFDR, unveiled in late September at the Franchise Leadership & Development Conference, is based on responses from 167 franchisors representing 60,989 units (51,789 franchised and 9,200 company-owned).

Participants in the survey consisted of franchisors that completed an extensive online questionnaire. Responses were aggregated and analyzed to produce a detailed look into the recruitment and development practices, budgets, and strategies of a wide cross-section of franchisors. The data and accompanying commentary and analysis provide the basis of the 2017 AFDR. (Ordering information is below.)

This week: Measuring cost per lead and cost per sale

Six in 10 respondents said they tracked cost per lead (61 percent, compared with 60 percent last year) and cost per sale (57 percent, compared with 58 percent last year). This means that about four in 10 respondents still do not track cost per lead and cost per sale – a number that continues to perplex franchise recruitment experts, who continue to shake their heads in bafflement over how any professional sales team can set a budget, spend the money, and not measure the effectiveness of that effort.

On a more positive note, the number of brands tracking cost per lead and cost per sale has improved from several years ago (52 percent in 2014, about the same in 2013, and 65 percent in 2012). Why 100 percent of brands don’t track these critical metrics remains a mystery.

As for costs, the average cost per lead reported in this year’s survey was $109, up from $97 last year, while the average cost per sale of $7,558 also was up, from $6,300 last year.

Measuring Costs

61%

Track cost per lead

$109

Average cost per lead

   

57%

Track cost per sale

$7,558

Average cost per sale

Next week: Sales closing ratios, 2011–2016.

Ordering Information
The complete 2017 AFDR, with analysis and benchmarks, is available for $350. For ordering information, call Sharon Wilkinson at 800-289-4232 x202, email [email protected], or click here.

Published: March 6th, 2017

Share this Feature

The Human Bean
SPONSORED CONTENT
The Human Bean
SPONSORED CONTENT
The Human Bean
SPONSORED CONTENT

Recommended Reading:

IHOP
ADVERTISE SPONSORED CONTENT

FRANCHISE TOPICS

MY SALON Suite
ADVERTISE SPONSORED CONTENT
Conferences
InterContinental, Atlanta
JUN 24-26TH, 2025

ApplePie Capital provides a fresh new approach to franchise financing that is focused on your growth and success.
Boost your brand with AnswerConnect, the IFA's preferred vendor. Our 24/7 service ensures growth through professional call answering, lead capture,...

Share This Page

Subscribe to our Newsletters