2021 franchise recruitment targets and plans should be finalized. Especially when you consider that January signings typically come from leads generated back in September and October. Great job getting your annual target and plan set. But before you get too excited there is one more question to ask yourself… “what is the forecast telling me and how does that compare to the target?”
What is the data and history saying about what is likely in the future? What are metrics such as leads to signing, step one calls to applications, applications to discovery day (virtual or live in person), discovery day to signing, and other key performance indicators telling you about new unit signings in Q1 of 2021? This is the only way to properly forecast and know if you are “on track” or “off track” vs the target.
Next, look at historical data regarding Q1 new unit signings in 2020 and 2019? And what about Q3 2020 and quarter to date signings in Q4? Questions linked back to data, metrics, and historical performance are the foundation for accurate and reliable forecasting.
Depending on the study or survey, up to 90% of franchise companies do not hit their annual recruitment signing targets year in and year out. One root cause is that too many franchise executives have no problem setting lofty goals or targets, but when it comes to reliable forecasting to identify what will prevent success, they fail miserably.
If this might be you, what can you do about it? Follow these six steps…
Compile the last 13 weeks of data. Gather numbers from the top of the funnel to the bottom including leads, reach or contact rate, step one appointments scheduled, step one calls kept, applications completed, discovery day attendees, and signings.
Establish key ratios. Determine the conversion percentage between each of the steps in the funnel. Ask questions like “how many leads is it taking to get a kept step one call with a recruiter?”, “how many applications is it taking to put a candidate into discovery day?”, “how many scheduled step one calls is it taking to get a kept step one call?”…you get the idea.
Calculate activity required for each step to hit new target. This is 100% based on data and metrics over the last 13 weeks. By reverse calculating back up the funnel, based on actual performance, you will get a snapshot of what it will take to hit your target.
Identify the gaps between target and forecast. If the forecast, based on the last 13 weeks, is telling you two new unit signings is what is predictable and your target is five, you have a gap. You have decisions and a plan to make.
Develop action plans to close the gaps. Because of steps one through four, you are confident that you are working on the specific areas that will pay the biggest dividends in moving you closer to and hitting your target.
Repeat steps every five weeks and adjust!
The small number of franchise companies winning with recruitment and hitting quarterly signing targets year in and year out are doing some version of what I just laid out. They understand that you must incorporate both targets and regular forecasting analysis to know the gaps requiring immediate action plans and attention.
Let’s go to work!
Want to talk this through? Schedule time with me here.