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Building a Foundation: Franchise ROI

Get The Best Returns On Your Investment Getting your return on investment (ROI) keeps your franchise business going. There are millions of ways to get your investment back, each proclaiming they’re the best. Small things, like an email newsletter, can have huge upsides, like a 4,200% ROI. No matter what specific tactics you’re using, these […]

January 29, 2024
Building a Foundation Franchise ROI

Get The Best Returns On Your Investment

Getting your return on investment (ROI) keeps your franchise business going. There are millions of ways to get your investment back, each proclaiming they’re the best. Small things, like an email newsletter, can have huge upsides, like a 4,200% ROI. No matter what specific tactics you’re using, these three tactics can serve as the foundation of your investments.

Find a CRM that Works for You

There is a lot of Customer Relationship Management (CRM) software out there, but not everything will work for you. Finding the right platform to collect your contacts, customers, and colleagues is foundational for boosting your ROI. Your customers will

feel the effect when you can keep their contacts and correspondence in one place. Good relationships with customers lead to more referrals and bring more business. CRMs also have data automation, which can deliver calculated results of new strategies or experiments you may be running. Seeing the resulting data from these strategies will help improve how these tactics are being implemented. For every dollar spent, CRMs deliver roughly $8.71 for their ROI. That’s a return you can’t ignore.

Have the Right Team

This seems obvious, but folks forget their team is often their most significant investment. Without a good team, your business won’t be successful. You can ensure you’re hiring the right people by measuring Key Performance Indicators (KPIs). That can include labor costs per hour, revenue per hour, and net compensation per employee. The aforementioned CRMs can do a lot of that work for you, but tracking those KPIs before laying off team members or hiring new ones is essential.

Be Adaptable

While this tactic doesn’t focus on tech or data, it’s still foundational to having a successful business. Assuring your quarterly goals are malleable will help you adapt the data you accrued. It’s okay if you don’t hit the ROI you had foreseen in your first quarter; adjust your methods to hit another goal. It doesn’t help anyone to stay on the wrong path, so be sure to remain flexible.

These three tools will cement your business’s ROI, whether you’re just starting or have been in business for decades. This foundation will allow you to consistently run new experiments and tactics while being able to track the data that emerges alongside your team. Don’t fall for all the shiny bells and whistles; these reliable tactics won’t lead you wrong.

West Coast Franchise Law

If you have any questions about franchising, please contact the experienced franchise and business law attorneys at West Coast Franchise Law today at (206) 903-0401 to discuss your situation. Nate Riordan is a 2023 Franchise and Bankruptcy Super Lawyer with over 20 years expertise helping clients achieve their business goals.