If I were to ask you what the three most important metrics or KPIs in your business to measure profitability are – would you know them? If you don’t, stop reading right now and get clear on those. Then continue reading. I’ll wait. 😉
Okay, you know your top three KPIs.
- Are you looking at them once a week?
- What are the most important things that you need to look at?
Maybe it’s average sale per customer, maybe it’s conversion from drop-in to membership if you’re in a service-based business.
Whatever it is, great that you know it, but more importantly:
- Do you know how to affect it?
- Do you know how to improve it?
Keeping it simple
I’m always about keeping things simple and creating simple strategies. As a franchisor, it’s your job to help your franchisees to be profitable. One of the ways you can do that is by providing the tools and resources that they need, which includes being very clear with whatever the most important metrics are. Whatever the KPIs are in your business, get them clear on those. Just keep it simple, have the top three and know what you’re shooting for like, what is your goal with that number? If you don’t achieve it, what can you do?
Let’s pull out an example: Say it’s a fitness business, and you’re having a challenge with people that have dropped-in, converting to membership. Well, how do you fix that? Likely, this has to do with the training of the people that are in the studio. Do they have the tools to convert that drop-in to a membership? This could be those working the reception desk or maybe the actual fitness instructors; but obviously, there’s something that needs to happen at that moment. Maybe there’s also a follow-up email. Maybe that email isn’t happening. Whatever it is, it’s important to be super clear, know your KPIs and know how to affect them.
So, my Exponential Growth Tip for today is:
As a franchisor, it’s important to teach your franchisees what the top three KPI’s are, and HOW TO IMPROVE THEM!
I’d love to hear what your KPIs are, or help you find out what they are. One of my passions is helping franchisors get their franchisees to be profitable, and I’d love to help you with this!
If this gets your wheels turning, send me an email to angela@angelacote.com and we can get that conversation started!
In the meantime, GO BE AWESOME!