Check out the 7 main marketing indicators to monitor in franchises and why they are so relevant to business development
Monitoring marketing and sales indicators is essential for the success of any business, especially when it comes to a franchise. After all, having a clear and accurate view of these metrics can be the difference between a thriving company and one struggling to survive.
Therefore, in this article, we will explore the 7 main KPIs (Key Performance Indicators) that you should track to ensure the sustainable growth and efficiency of your franchise.
From conversion rates to customer retention, discover how this data can provide valuable insights to optimize your strategies and achieve exceptional results. Shall we?
What Are Marketing and Sales KPIs?
But before we specifically discuss the most important indicators for franchises, it’s essential to talk generally about marketing and sales KPIs – crucial metrics for determining the success of strategies, identifying areas for improvement, and guiding future decisions. Below, we explain in more detail what they are and why they are important:
Marketing KPIs
Marketing KPIs are specific metrics that help evaluate the effectiveness of marketing campaigns and their contribution to achieving business objectives. They provide insights into how actions impact consumer behavior and return on investment. Some examples include:
- Website Traffic: The number of visitors accessing the company’s website;
- Conversion Rate: The percentage of website visitors who take a desired action, such as making a purchase or filling out a form;
- Cost per Lead (CPL): The average cost to acquire a new lead;
- Social Media Engagement: The level of interaction and participation of the audience with social media posts, whether through comments, likes, and shares;
- Email Open Rate: The percentage of email recipients who open the message;
- Click-Through Rate (CTR): The percentage of people who click on a link (such as in an ad) relative to the total number of views;
- Marketing Return on Investment (ROI): A measure of the profit generated relative to the cost of marketing campaigns.
Sales KPIs
Sales KPIs are metrics used to evaluate the performance of the sales team and the effectiveness of their strategies. They help understand how the team’s activities are contributing to revenue growth and achieving sales targets. Some examples include:
- Total Revenue: The total amount of sales made in a given period;
- Sales Conversion Rate: The percentage of leads that convert into paying customers;
- Sales Cycle: The average time it takes to convert a lead into a customer;
- Customer Acquisition Cost (CAC): The average cost to acquire a new customer, considering all marketing and sales efforts;
- Average Order Value (AOV): The average value of each sale made;
- Lifetime Value (LTV): The total value a customer brings to the company over the entire relationship;
- Customer Retention Rate: The percentage of customers who continue to purchase from the company over a specific period.
Together, marketing and sales indicators are essential tools for monitoring the performance of implemented strategies and actions, providing a clear and quantifiable view of progress towards business objectives.
Therefore, within various companies, including franchises, they allow measuring the effectiveness of campaigns, identifying areas for improvement, and adjusting tactics to maximize results. Regular analysis of these metrics helps ensure that efforts are aligned with company goals, optimizing resources and investments.
7 Key Indicators to Analyze in Franchises
Below, we detail the main marketing and sales indicators that should be analyzed to ensure the success and sustainability of a franchise:
1. Engagement Rate
At the top of the funnel, we have the engagement rate: an indicator that helps measure the level of interaction and involvement of consumers with the content promoted by the brand on social media and other digital platforms.
Metrics such as likes, shares, comments, and views help reflect the effectiveness of communication strategies and the relevance of messages to the target audience. Thus, a high level of engagement indicates that the franchise is successfully capturing the attention and interest of consumers, which is fundamental for long-term success.
2. Conversion Rate
This is one of the most relevant indicators, as it reveals the effectiveness of campaigns in turning visitors or leads into actual customers. In other words, it allows evaluating the efficiency of the sales funnel, identifying which stages are working well and which need optimization.
When the conversion rate is high, it indicates that the franchise is successfully attracting the target audience and encouraging them to buy, which directly reflects an increase in revenue and the success of marketing strategies.
3. Customer Acquisition Cost (CAC)
The Customer Acquisition Cost (CAC) helps measure the investment needed to attract and convert a new customer. It takes into account all costs related to marketing campaigns and sales efforts, including advertising, promotions, team salaries, and other operational expenses.
A low CAC indicates that the franchise is using its resources efficiently to acquire customers, while a high CAC may signal the need to adjust strategies to improve efficiency and reduce costs.
4. Sales Volume
This is a KPI that provides a clear view of the franchise’s performance in the market, allowing for the assessment of the effectiveness of marketing and sales strategies. When there is a high sales volume, it confirms strong demand and acceptance of the products or services offered in a particular region.
From this, franchisors can identify market trends, adjust supply according to demand, and plan the future growth of the brand, ensuring its competitiveness and sustainability in the market.
5. Average Order Value (AOV)
The average order value is a crucial indicator that represents the average amount spent by each customer in a transaction. It offers insights into consumer purchasing behavior and the effectiveness of strategies to promote higher-value products or encourage additional purchases.
By monitoring its own average order value and comparing it with other franchises, the company can maximize the value of each customer and increase revenue without necessarily increasing the number of customers.
6. Return on Investment (ROI)
ROI is a vital indicator for analyzing franchise marketing and sales, as it measures the efficiency and profitability of marketing campaigns by comparing the profit generated with the cost invested.
A positive ROI indicates that marketing strategies are bringing a financial return higher than the investment made, demonstrating the effectiveness of the implemented actions. Additionally, this KPI helps identify which strategies are most profitable, guiding the allocation of resources more efficiently.
7. Net Promoter Score (NPS)
Finally, the Net Promoter Score (NPS) measures customer loyalty and satisfaction by evaluating the likelihood of customers recommending the brand to others.
Calculated from a simple question about customers’ willingness to recommend the franchise, NPS categorizes respondents into promoters, neutrals, and detractors, offering a clear view of the customer experience.
With this information, franchisees and franchisors can identify areas for improvement in service and the products or services offered, providing insights to enhance strategies, strengthen customer relationships, and boost long-term loyalty and retention.
How to Analyze Marketing and Sales Indicators for Franchises
It may seem challenging to analyze and compare marketing and sales indicators for franchises, especially when there are many units to monitor. However, with Reportei, this process becomes much simpler.
Through the creation of automatic reports, you can integrate the social media used by each unit and create monitoring reports for each one – in just three seconds! From this data, it is possible to:
- Compare with previous periods (months or even years);
- Analyze results to understand which actions are working and which need improvement;
- Define local strategies to attract more specific audiences;
- Create a history in the Marketing Timeline to facilitate alignment between franchisor and franchisee.
Additionally, you can open reports for a specific region to understand the development of each unit and, together with sales data, collect information to direct your marketing efforts to attract more franchisees.
Take advantage of our free 3-day trial and discover how our marketing and sales reports can help develop your network!
