Conversion rates for selling a franchise to leads generated - Part II

There are a lot of factors to determine the appropriate conversion
rates for selling a franchise to leads generated.
1) How well is your Brand known
2) Is it a retail franchise or a service franchise
3) What is the investment level
So, you can get a lot of broad ranges for the conversion factor.
However, what is important is for you to track your conversions by
lead source. You also may want to have additional milestones rather
than just the sale of a franchise to determine the best leads. For
example, I differentiate leads by who I send a FDD because this means
I screened the candidate and they were serious.
Make sure you have good franchisee validation because that can really
hurt your conversion rate and by the time you let a candidate contact
franchisees you had to feel they were very serious candidates. The
referral source may be good, but your validation process can let you
down.
Author: Jim Norton- USA

Conversion rates for selling a franchise to leads generated

Here are some general observations (backed up from CRM studies).
Broker groups 2% - 8%
Web Portals 1/2% - 1 1/2%
Expo's 1% - 2 1/2%

A key component are engagement rates - The ability to actually speak
with the candidate following receipt of the lead.

Internet averages around 17%
Trade Shows up to 48%
Consider Virtual Events - Engagement rates up to 66%

All of these rates are improved with lead management tools - Consider
Process Peak and Captivate.

I routinely find that the problem isn't always the lead generation
source but rather the processes that are in place. Especially, lack of
key "engagement" tools and techniques early in the process and the
ability to maintain engagement throughout the process. Some are very
effective in engaging the candidate early in the process and doubling
their closure rate - this includes the type and frequency of email and
voice messages. This is supported by the significant difference seen
between certain brokers and broker groups.

The cost of the concept and total investment is consistently a key
factor in lower close ratios.... primarily due to funding challenges
and the "limited education" levels of franchise brokers, development
personnel and franchisors themselves to be knowledgeable about funding
options... to address funding concerns candidates have early in the
process. Keep in mind the average price of franchises being sold have
significantly dropped since 2005.

It's simply amazing to me that many spend a great deal on lead
acquisition but don't spend the necessary money on internal training
which can be a "small fraction" of the cost.

Author: Larry Carnell- USA