As a franchisor, it’s important to know what is your cost per franchise sale? This metric helps you understand how much you are spending to acquire new franchisees and can provide valuable insights into your marketing and sales efforts.
Calculating your cost per franchise sale is relatively straightforward. Simply divide the total amount spent on marketing and sales efforts by the number of franchise sales during the same period. For example, if you spent $100,000 on marketing and sales efforts and sold 10 franchises, your cost per franchise sale would be $10,000.
Having the right information in regards to cost per deal can help you make more informed decisions about where to allocate your marketing and sales resources. For example, if you find that your average cost is higher than you would like, you may need to adjust your marketing and sales strategies to target more qualified leads or improve your sales process to increase your conversion rate.
Here are some key benefits of knowing your cost per franchise sale:
- Helps you make informed marketing decisions: If you have accurate information on this important Franchise sales metric, you can identify which marketing channels and strategies are most effective at driving franchise sales. This information can help you optimize your marketing budget and focus on the channels that generate the best return on your Franchise marketing investment.
- Improves your sales process: If you find that your cost per deal is high, it may be an indication that your sales process needs improvement. By analyzing your sales process, you can identify areas for improvement and implement changes to increase your conversion rate and reduce your cost per franchise sale.
- Increases profitability: This information can help you make better-informed decisions that ultimately lead to increased profitability. By optimizing your marketing and sales efforts, you can reduce your cost per franchise sale and increase your profit margins.
In conclusion, calculating the cost per deal is an important metric that can provide valuable insights into your marketing and sales efforts. By knowing this metric, you can make informed decisions about where to allocate your resources and improve your overall profitability. So take the time to calculate the numbers and use this information to make data-driven decisions that drive success for your franchise system.
Call today to talk about the Verified Franchise Leads™ program and how we can help you lower your cost per sale: 610-894-7499