If I told you: “We offer you access to scientific methods to increase the revenue for your franchise,” you’d be interested, right?
You might not be so excited if I told you it was all about the clever use of metrics. For some people the term ‘metrics’ is a turn-off, because it sounds like a term from economics or higher maths. But metrics can make a huge difference in achieving franchise success, both for individual franchisees and, because of the way franchising works, for the franchise as a whole.
Why focus on metrics now?
When the economy is steady and booming, you can probably afford to ignore business metrics (a bit) because a rising tide floats all boats and your business will probably grow anyway. But with the UK economy as chaotic as it is at present, you need to monitor the performance of your franchise closely and often, in order to make the right decisions for an uncertain future.
Why we need metrics
Metrics are a tool to measure performance and to make business decisions. While there is always a place for experience, hunches and business ‘nous’ when you are running any kind of business, franchise or otherwise, metrics are hard numbers. Gathered in the right way, they do not lie. This is why a considered use of metrics reduces the risk of making bad business decisions.
Remarkably, there are some franchises that collect very few metrics from their franchisee networks. I understand – it’s harder for a franchise than it is for a company with branches, where branch managers, as employees, have no choice but to supply the figures head office needs. However, some franchisees, as business owners, might just not see the point of sharing some of their individual figures with the franchisor.
Leaders should highlight to franchisees how useful metrics can be to them.
Metrics as tools
At Walfinch we use ‘The Metrics Method’. Collecting statistics from our franchisees means that we can calculate which activities most increase their revenues, making it easier for them to set priorities. We can tell our franchisees how many phone calls it takes to recruit a carer, and the average number of candidates they have to interview before a carer is taken on.
As the franchisor, we can see the average number of prospective franchisee leads required to recruit a franchisee. We can also monitor the performance of individual franchisees and step in with help to prevent small issues growing into big problems – a win for all involved.
Technology helps
Software is available which is designed to provide franchisors and franchisees with the metrics needed to help drive their businesses forward. It can be customised to suit your own business. We use it and make it available to our franchisees, which adds to the attraction of the Walfinch franchise.
Why make business decisions without scientific data, when you could use metrics instead?
