Funnel Vision: Is Your Top-of-Funnel Ratio Top of Mind?
When I ask a question about numbers, it typically gets answered by someone telling me how many signings have been secured. Nothing wrong with that. We can only grow our brand through unit signings with the highest-quality franchisees.
However, if you are not plugged into what is happening at the top of the funnel, measuring results and adjusting accordingly, you will find your results all over the place and your marketing dollars wasted. If you want to be able to forecast accurate results over the next 90 days, that knowledge is necessary.
Let’s look at top-of-the-funnel ratios for the sales or discovery process. Open the tools you use for measuring and analyzing new franchisee recruitment data. Use your CRM or a spreadsheet.
Below, I’ve listed the top-of-the-funnel key ratios and conversion percentages development manager and leader should be tracking and managing against. Doing this will increase results and signings at the bottom of the funnel.
1) Lead to Scheduled Step 1
How many suspects or leads who reach out to your brand are communicating with a member of your team and scheduling a 45 to 60-minute Step 1 call?
Your results: ____ (past 90 days)
Target: 35–40%
Industry: <10%
Notes: This is for a scheduled Step 1. Out of 100 leads at the top of the funnel, 35 to 40 should agree to a date and time to talk with a recruiter. If your lead volume is dominated by broker candidates, the conversion can be as high as 95%.
2) Scheduled to a Kept Step 1
What percentage of individuals who schedule a Step 1 are keeping that appointment?
Your results: ____ (past 90 days)
Target: 75–80%
Industry: <40%
Notes: A kept Step 1 call is one of the most precious events in the discovery process. Most brands are not paying enough attention to how many leads convert to a kept Step 1. Huge mistake. Why? Because this is where the marketing part of the process separates from the sales part. Once a kept Step 1 occurs, your marketing worked. Marketing does not get you signed franchise agreements. Your sales process, starting with your Step 1, is where signings come from.
In closing…
Lead generation is becoming more expensive. Hitting your signing targets will require better performance at the top of the funnel. Find out how your team is performing. Tracking the results will create discussion and actions to improve.
Let’s go to work!
Art Coley is the CEO of CGI Franchise. Using the proven Recruitment Operating System (ROS), his team helps franchise companies implement and execute a predictable, repeatable, and sustainable new franchisee recruitment program. Based in Temple, Texas, they work with brands worldwide.
Contact him at 281-658-9409 or acoley@cgifranchise.com. This article was initially featured in Franchise Update.
