2019 AFDR Highlights: 7 Sales & Development Tips from Successful Brands
This is the tenth and last in an ongoing series of highlights from the 2019 Annual Franchise Development Report (AFDR). The 2019 AFDR, unveiled at the 20th annual Franchise Leadership & Development Conference (FLDC), is based on responses from 109 franchisors representing 34,058 units (26,838 franchised and 7,220 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 2019 AFDR. Ordering information is below. (Conference attendees received a complimentary copy.)
The 7 Differentiators
The following are seven of the most important things that the most successful franchise brands have seen or done in their recruitment and development that helped them rise above the competition:
- Lower average cost per lead and cost per sale.
- 75 percent reported the quality of their leads is up.
- Higher conversion rate of qualified leads, applications, and discovery days to close.
- Shorter time to deal close (10 weeks).
- 93 percent described unit-level business conditions as good (69 percent of franchisors below their goals described business conditions as good).
- Use multiple marketing vehicles.
- Fewer resales (50 percent fewer than franchisors below their goals).
"They have a strategy. They know where they want to grow, who their target customer is, and how to reach them," said Diane Phibbs, EVP and Chief Content Officer at Franchise Update Media, who presented the findings at the FLDC this past spring.
In addition, she pointed to the importance of unit-level business conditions as a factor in how today's top-performing brands differentiate themselves from the competition.
"Locations that aren't doing well can lead to transfers and closures. Surveys of multi-unit franchisees tell us that transfers and closures can be deal killers or red flags for them," said Phibbs. "If this is happening in your system, I'd suggest you have a conversation with your partners in operations and marketing right away. Get the brand on board to improve unit-level conditions before they kill your growth."
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