Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!

“My Conversion Rate’s Too High” -- The Affordability Conundrum

Usually, when I’m writing on the topic of turning visitors into leads, I share tips and tricks for how we think about raising conversion rate i.e. getting more people who visit your site to fill out a form.

Affordability of

However, when we move into the topic of affordability, we start to move into the realm of when conversion rate goes too far.

I’ll tell a brief story from a few months ago when I was having a conversation with one of our account managers here at FranchiseHelp. Anna was passing along some feedback that one of our clients thought their lead quality had been a bit low in the past few days. I told her I’d look into it, and when I did, I came to a startling finding – a dis-proportionally high percentage of the clients leads had been acquired and converted using language about the “affordability” of the franchise.

To be fair, this franchise had a liquid capital requirement well below the median that we see on our site, but that didn’t mean that there weren’t other very marketable qualities about the benefits of owning this franchise.

And that’s when it hit me, “My conversion rate was too high!” In an effort to attract more people to that franchise, we had accentuated a specific quality that didn’t necessarily lead to ultimate franchise sales.

So what is the affordability conundrum?

I’ll generalize by saying that by promoting the affordability of a franchise, a marketer drives more people into the sales funnel at the cost of mitigating the likelihood that any individual candidate ends up opening a franchise.

Let me give you an analytical idea of the power of promoting a franchise’s affordability.

One of the metrics you can use to determine how much certain messaging resonates with an audience is by measuring the click-through rate. (For the time being, I’ll define click-through rate as the percentage of people who read something who actually click to the next step).

If you were to look at a sampling of subjects of emails that we sent to potential franchisees in August and September 2014, you’d see this distribution of click-through rates:

CTR By Email Topic

So, versus the average click-through rate, we can expect a 66% increase by using messaging associated with the “affordability” of franchising! If conversion rate was the only thing we were focused on, then we would likely only market franchises as affordable.

This same logic applies to the copy on the website as well.

So here’s the balance that you have to keep in mind. Every time you promote your franchise as affordable, you are certainly doing a more effective job filling your franchise’s sales funnel. More people feel qualified to open a location, so you’re going to get more people to fill out a form. However, those who do fill out a form may not be the people you’re looking for! So make sure you keep an eye out for how that crop ultimately falls out in terms of opening a franchise.

Questions on affordability? Let us know!

When Should You Serve Facebook Ads. AKA We Tried to Outsmart Facebook

We love Facebook ads here at FranchiseHelp. They’re a great tool to use to reach a very specific audience with a more narrative message than you can usually accomplish with search ads. But beyond that we love the details you can get out of the data and the amount you can tweak your campaigns to take advantage of all sorts of small details. That’s why we figured that Facebook would be the perfect place to run this experiment. We created a set of ten different ads and then ran each ad in 24 different adsets, one for each hour of the day. We let these ads run for a full month and believe it or not, a best time started to emerge.

I'm Falling In Love With Facebook

If you’re like most, you probably assume that social media is a marketing channel full of thirteen year old girls.

Gmail Killed Our Email Strategy

Last fall Gmail completely destroyed our email strategy. We spent the next 4 months testing and brainstorming our way out of it till now it's stronger than it ever was.