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

Why Contact Rate Isn't The Only Metric To Grow Your Franchise Brand

Baseball players pride themselves on their ability to make contact when at bat.

Doing so helps to limit strikeouts, put the ball into play and make the opposing defense work.

And while contact rate is an important element within the game, baseball experts and statisticians often argue it’s an overrated one.

Moneyball, both the book and the movie, taught us that the game is not about batting average, it's about getting on base. It's not about defense, it's about runs:

Signing up new franchisees works in a similar way. Yes, contact rate is important. Don't ignore it. Frandev professionals want to have a high contact rate so they can reach more potential candidates.

Keep in mind, the next metric is a necessary focal point in your sales funnel:

Contact to appointment rate.

Let’s do a simple calculation.

When you make contact with fifty of your FranchiseHelp leads out of one hundred, that’s a fifty percent contact rate. Pretty solid, right?

You bet! But there’s more...

How many of those fifty leads book an appointment with you to take the next step to get more info, is where your sales technique and process are really tested.

If you can only set a handful of appointments, then you took a big whack at that healthy fifty percent rate, and it isn’t as powerful as it once was.

We were chatting with one of our clients, Michael Peterson of Franchise Beacon, recently, and Michael shared an encouraging case study about initial contact rate versus contact to appointment rate:

Put up against three other online lead portals in a 30-Day test, FranchiseHelp leads maintained a higher initial contact rate, so Michael advised, and then he successfully worked those leads to another pleasant discovery. 

According to Michael:

"The contact to appointment rate was about twenty percent higher than we had on the other platforms. And so that was super exciting."

Michael’s successful track record as a franchise development professional proves that the sales game is not just about getting good wood on the baseball, aka, contact rate, it’s about getting on base, aka, booking appointments, and earning runs, aka, closing deals.

If you want to grow your franchise brand, here are our recommendations:

  1. Make your number one franchise development KPI about turning activities into appointments. Execute against that metric, and you’ll focus your efforts on scoring runs, not just making contact.
  2. Whatever lead generation technologies you use, make sure you’re set up to execute a combination of email and text verification. This assures you will be able to strike while the iron is hot and capitalize on a candidate’s interest within seconds of their outreach.
  3. If you’re using texting for sales outreach, don’t include a link in your initial message. FranFunnel, the leading provider in the industry, has done the research on this tactic. You're much more likely to book an appointment with a lead if you end your introductory texts with questions like "What time are you available for a quick call?"

Remember, whether you’re playing baseball or selling franchises,  contact rate matters. It’s important, and contact to appointment rate should also be a big one.

Focus on getting on base and scoring runs, and the crowd will go wild.

Scott Ginsberg is Head of Content at FranchiseHelp. He was a pretty good baseball player until the age of 14.

MinorityFran Changing the Game for Minorities in Franchising

As far as the incentives go, there are three main categories that franchisors tend to work with when they're looking to increase access to their systems for minorities. The most popular method used, by far, is to offer discounts on initial franchise fees. The second most popular incentive offered to minorities by franchisors is financing assistance and other discounts to help pay off the sizable franchising fees that new franchisees incur. Finally, in rare instances, franchisors offer minority franchisees administrative and development support above and beyond what they provide to the non-minority franchisees in the system. Here is a list of franchises that have gone the extra mile to reach out to minorities looking to get involved in franchising.

Franchisor-Franchisee Independence and Joint Liability, Redux

In the Tilted Kilt case, the franchisor allegedly published an “employee handbook” for franchisees to distribute to their staff, and exerted significant control over the operation of the franchised outlet in question. If true, these are two factors that typically weigh in favor of finding the franchisor to be a “joint employer” with its franchisee, thereby potentially subjecting it to liability for the alleged harassment.

Don't Write a Business Plan

I've started and successfully harvested businesses. I've taught entrepreneurship for almost 20 years. As a part of my teaching and research I've written books and texts on how to write a business plan. I've read almost a thousand of them. Now I believe franchise companies can think differently about business plans.