Growth monitoring is crucial to every business. It gains more importance in a specialized process like franchisee marketing for a business, where the main objective is business growth. The advantage of owning a franchise is that you are part of a proven growth strategy, excellent brand recognition, and investment stability. However, the entire recipe for success doesn’t guarantee the success of the business. For your business to be successful, regular monitoring is crucial to analyze the business performance against the desired goals, consumer interaction, and revenue targets. Therefore, to understand the business performance accurately, you need to employ key performance indicators (KPIs). Some important KPIs to monitor the franchise business growth are as follows.
Importance of KPI in business monitoring
KPI is vital to have a clearer picture of the business process implemented like the franchise marketing, to understand what is working for the business and what is not. A business strategy implemented may return a sound rate of return on investment over a period. But as the franchise owner, if you are unaware of the specifics of profit sources, you cannot make the right investment decision. Identifying the source of profit and efficiency is critical to maximizing the profits, encouraging an informed investment decision process, and reducing losses on but eradicating processes working for the business. Advances analytics are essential to track and monitor your business.
Growth monitoring with KPs and marketing analytics will help you track the performance of the business strategy specific to the channels. Some KPIs and analytical tools as follows.
Search engine optimization (SEO) KPI
SEO is fundamental to the current business strategy comprising the digital and social media realm. SEO helps to achieve business websites to achieve a higher ranking in the search engine results. The efficiency of the business process integration with the localization emphasis helps achieve a higher ranking for the business sites in the searches. Contextual and relative information drives in more traffic. SEO strategy is responsible for the relativity. SEO KPIs to monitors are as follows.
The search traffic metric comprises a detailed view of the total number of visitors, returning traffic, unique visitors, organic traffic, website hits, page views per session with timestamps, top visited pages, and time spent on the website specific to each page. The flow of traffic is directly proportional to the effectiveness of the SEO strategy, a portion of which translates into guaranteed business revenues. The SEO traffic KPI is additionally broken down into more specific metrics like Traffic-To-Lead Ratio, Keyword Rankings, and Bounce rate, to name a few.
Credibility, ratings, and reviews monitoring
The effectiveness of the franchise marketing process and digital marketing strategy is dependent on customer interaction. A reliable feedback mechanism helps enhance the products and services and also develops a sustainable customer base. The ratings and reviews of the customers thus play a significant role in brand image and revenue generation. New customers depend on brand reviews of earlier purchases. Consistently positive reviews are vital for your business. Some KPIs relative to the customer is as follows.
Conversion rate is the number of customers that end up purchasing the product and services. Conversion rate gives credibility to the business and customer review. High customer conversion is desirable, which is also associated with good consumer interaction and feedback strategy. Monitoring conversion rate analytics helps you find what is working to enhance that business process. Conversation rate also takes into consideration the investment towards lead generation. Conversion rate is the converted leads divided by the cost of acquisition.
Cost per Acquisition (CPA)
CPA is the analysis based on the business investments in the franchise or digital marketing strategy and the number of customers gained. It is a simplistic metric but very important for future investment decisions. You need to keep the CPA as low as possible to achieve a high success rate.
Customer Lifetime Value (CLV)
CLV is dependent on customer retention. The higher the customer stays with the brand and business, the higher are the spending. A sustainable customer base thus generates high CLV and also inspires other consumers. CLV is the average spending of the customer from the beginning to the churn.
Social Media KPI
Social KPI is necessary to understand the effectiveness of the business strategy on social media platforms like Twitter and Facebook. Consumer interaction on social media platforms comprises likes, favorites, reposts, retweets, and reposts. You can calculate the interaction rate or engagement rate with the total accounts involved in the interaction and the total engagement achieved. Ideally, your strategy should emphasize achieving a high engagement rate which corresponds to a higher hit rate, consumer visits, purchases, and revenues. Brand mention and audience growth rate are other significant growth monitoring KPI.