Franchise business do they need Key Performance Indicators a.k.a KPIs. Would you be surprise to know the answer that is yes? Franchise is still a business that needs you to focus on your performance. Now you acknowledge that KPIs can help you to measure the success of your franchise business.
Franchisor wants to grow the business by having more franchisees and build a strong brand for customers. Franchisee is to ensure customers enjoy coming to your shop and enjoying your service. Franchisee focuses on customer’s satisfaction.
You can set some KPIs on the relationship with Franchisor and how Franchisor can help you to meet customers’ needs and also be satisfied with your products and service.
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Franchisor’s response time to solve problems and provide solutions.
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Franchisor’s flexibility to meet customers request.
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Franchisor’s adaptable to train your staff.
Next, you would move on to define the KPIs for your business
Customers
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Customers that are loyal and contribute to % of your monthly sales.
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Customers that are making contribute but not loyal as they are prices sensitive.
Employees
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What are their level of competencies to prepare your products, serving your clients and deliver on time.
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How many learning your employees investment themselves to make their service fantastic?
Quality
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How do you rate your quality of product and quality of your service
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How do you know that your products are moving and which are not?
Finance
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How is your cash flow?
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How is the collection turnaround?
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Who is contributing to your bottom line?
From these KPIs, you would be able to stay focus to ensure your business is moving in the right direction. Not only you are having a wonderful franchise business, but also Franchisor would offer you better deal to open more franchisee outlet under your wing.
Similarly with KPIs, you can forecast your business performance more accurate about your customers and your products. Obviously you would like your products meet not all but most of the targeted customers. You are on the road to the long term franchise.
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