Franchising can be a lucrative business venture, but like any business, it requires careful planning and goal setting. Metrics are an essential component of franchise goal tracking, as they provide valuable insight into the performance of a franchise.
In this article, we’ll examine the most important metrics to track for your franchise. To help you set specific and measurable goals, include these metrics in your business plan. For a well-defined plan, use this template on how to create a franchise business plan for guidance.
1. Sales Revenue
Sales revenue is the most important metric to track, as it provides a clear picture of how much money the franchise is generating. Track this metric regularly and compare the results to previous periods to identify trends in sales. By tracking sales revenue, you can make informed decisions about allocating resources and adjusting your strategies.
2. Customer Acquisition Cost (CAC)
CAC is the amount of money spent to acquire a new customer. This metric helps to determine the cost-effectiveness of marketing campaigns and sales strategies. By tracking CAC, you can identify areas where you need to improve marketing efforts or sales techniques to reduce customer acquisition costs.
3. Average Ticket Price
The average ticket price is the average amount of money spent by customers on each transaction. This metric provides insight into the purchasing habits of customers and can help identify opportunities to increase revenue. By tracking the average ticket price, you can specify upsell opportunities and optimize your pricing strategies.
4. Employee Turnover Rate
This metric tracks the percentage of employees who leave the company over a specific period of time. The metric helps to determine areas where employee retention can be improved. By tracking the employee turnover rate, you can detect the reasons for employee departures and take steps to address them.
5. Customer Satisfaction (CSAT) Score
The CSAT score measures how satisfied customers are with the products or services provided by the franchise. This metric provides insight into the quality of customer service and the overall customer experience. By tracking CSAT scores, you can implement improvements that can help enhance the customer experience.
Tracking these key metrics is essential for franchise owners who want to set and achieve their business goals. By regularly monitoring and analyzing metrics, you can make strategic decisions regarding making improvements and growing your franchise.