Franchise lead generation is the process of generating inbound inquiries about a franchise with the goal of turning that interest into the sale of franchise unit(s). Turning those leads into sales is the primary goal of sharing proprietary data here at Franchise Insights. This includes tips on maximizing initial contact, to understanding the lifetime value of leads, and overcoming the obstacles introduced by Apple’s well-intentioned email privacy and mobile app tracking transparency initiatives.
There is also feedback from actual franchise prospects on the franchise sales process.
Franchise leads come from paid, owned and earned media sources. Paid sources include search engine marketing, social media advertising, and franchise directory websites or “portals”, which play an important role in the research and discovery process leading to franchise ownership.
Key “owned” sources included the franchisor’s own development website, and referrals from existing franchisees and employees. Data show that a significant source of “bonus” referral leads follow inquiries on franchise directory websites.
Examples of “earned” sources include media mentions, articles and social media posts. Search engine results pages (SERPs) for key search terms are highly valuable, given their role in the search process of persons researching franchises.
April 24, 2024 – In four months of survey data from January to April 2024, only 14.4% of respondents are “very likely,” and another 15.4% say they are “likely” to take a cold call from you. The traditional “call first” approach will likely lead to your frustration with about one third of franchise leads, and reduce the chances of more productive conversations with informed prospects.
March 27, 2024 – Most franchise prospects (42.4%) prefer to be emailed on initial contact by a franchise they have expressed interested in according to fresh data in the March 2024 Franchise Insights Mystery Shopping survey. Another 30.6% indicated a desire for a phone call for the initial contact. This order preference is consistent with prior monthly “mystery shopping” surveys, including when we last shared franchise prospect contact preferences data.
The optimal order for following up with franchise prospects is about playing the odds. Segments of the pool of franchise leads prefer one of the nine permutations of three contact methods (email, voice and text), but to have the highest expectations of fruitful contact, especially given the 24/7 nature of lead flow, it pays to listen to what prospects want overall.
February 28, 2024 – When asked about advertising plans for 2024,about a third of franchise development teams expected to increase their spending somewhat or significantly at Google, Meta or LinkedIn. This is following 2023 wherein, despite tumultuous business conditions and shocking news headlines, more than 58% of franchisors surveyed either stuck to their growth plans (50.0%) or increased them.
February 14, 2024 – Signs from a number of metrics (time spent, monthly active users) and media reports are that we may have reached “peak” social media as measured by postings, monthly active users and time spent. The Wall Street Journal posits in a recent article that users are doing a lot more lurking than posting these days and foresees more of the same in this election year, along with mounting concerns about privacy.
January 31, 2024 – The most reliable options for franchisors to directly acquire prospects in recent years – email and text marketing, paid search and social media – are all undergoing significant change, as are the dominant mobile and desktop platforms offered by Google and Apple (and a few others hardly worth mentioning).
January 24, 2024 – In our last article, we highlighted some of the headwinds facing advertisers who generate franchise leads from Google. Traffic exclusivity from Apple, antitrust and regulatory court proceedings threaten Google in 2024, along with greater competition by other players like Microsoft who aim to use artificial intelligence to get a bigger piece of the search marketing pie.
January 17, 2024 – One of the most reliable pathways to filling the franchise sales funnel is under siege in 2024. Not only has it fallen to second place behind Microsoft in consumer “mindshare” regarding AI, it faces potentially disruptive regulatory threats, while committing unforced errors of its own in the name of privacy.
January 10, 2024 – Signs are that we may have reached “peak” social media as measured by posting activating and consumer surveys. The Wall Street Journal posits in a recent article that users are doing a lot more lurking than posting these days and foresees more of the same in an election year along, with mounting concerns about privacy.
December 28, 2023 – From a review of web traffic to content viewed over the past year, we developed a “Top Ten” list of the most popular topics among our insights in 2023 based on the readership of articles by category.
November 29, 2023 – Prospect initial contact rates are up, as reported by the latest FranchiseInsights.com survey in October 2023. Almost 52% percent of respondents say they were contacted by all of the franchises they inquired about, up from 46.2% in June when we last reported this data. Aside from the efforts of franchise sales teams, what could be driving this improvement?
Oct 11, 2023 — Prospects were asked why they proceeded to visit the franchisor site(s), the overwhelming response at 50.7% was “I was very interested and just wanted to learn more.” Another 31.5% wanted to “prepare before having a conversation” with franchise representatives.
September 27, 2023 — When evaluating franchise directory websites (portals), cost per lead is often a key decision factor, assuming quality standards are met. But leads submitted at franchise portals also result in substantial referral visits to franchisor websites, in addition to being a significant source of leads submitted at development websites
September 20, 2023 — When lead sources are compared, “price”, and even “cost per sale” – are incomplete, if not misleading. There are additional critical components of value in assessing return on your investment in franchise portals or other third party lead suppliers.
September 13, 2023 – Aspiring business owners come to franchise directory sites to see what’s out there, and for the convenience of comparisons in one place, and ease of connection to franchise representatives.
Aug 2, 2023 — After ChatGPT was launched November 30, 2022, and Microsoft added ChatGPT features to its Bing search February 7, 2023, speculation swirled about the impact on Google’s dominance of web searches. Google launched Bard globally on May 10 this year after opening by invitation starting March 21.
July 26, 2023 – Apple announced a new “Live Voicemail” feature for its anticipated September iOS 17 iPhone software update. Rather than banishing the caller directly to voicemail without ringing, as the “silence unknown callers” feature does, the first several seconds of the caller’s message is presented in text on the home screen, giving the call recipient an option to pick up the call.
June 28, 2023 – As seen in recurring surveys, most franchise prospects (38.3%) prefer to be emailed for initial contact with a franchise they have chosen, according to monthly “mystery shopping” surveys by FranchiseInsights.com April-June 2023.
May 31, 2023 — In looking at data for thousands of franchise inquiries during the month of April 2023, 41.6% selected a single franchise opportunity for follow up. An additional 16.1% inquired about a second franchise, and 9.8% requested follow-up from a third concept.
May 24, 2023 — A very small percentage (5.2%) of aspiring franchise owners are already “very familiar” with the franchises they inquire about, and another 20.3% are “already somewhat familiar” with them
Norfolk, VA, May 10, 2023 – Research shows that only a fraction of franchise prospects are likely to return your call before receiving an introductory email from you. In an April 2023 survey, only 12.9% of respondents are “very likely,” and another 22.6% say they are “likely” to take a cold call. The traditional “call first” approach will likely lead to your frustration with at least a third of franchise leads.
March 15, 2023 – Aspiring business owners talking with franchise sales teams were largely satisfied with their experience, according to recent mystery shopping surveys over the last six months ending in February 2023. Almost half (48.7%) said they were either “satisfied” or “very satisfied”, and only 12.4% said they were “unsatisfied” or “very unsatisfied.”
Now that Microsoft has unveiled its chatbot-enhanced search results into new downloads of the Bing mobile app, and to Bing desktop users by signup on a limited basis, we can further analyze the impact of chatbots on paid and organic search marketing, following up on our earlier article.
Kudos to the franchise sales teams who reached out to all of the inquirers who requested information from them in February 2023. There is no doubt that they will be finding new franchisees, unlike those teams that did not follow up with an initial contact within seven days.
February 15, 2023 — What is now more interesting to Google searchers than Kim Kardashian, and almost as interesting as TikTok? Based on recent Google Search trends in the US, the answer is ChatGPT. Over one billion visits to the product occurred between its launch November 30 and February 5, 2023.
January 18, 2023 – Analyzing our content viewed over the past year, we developed a “Top Ten” list of the most popular topics among our insights in 2022 based on the readership of articles in topic categories. Along with each topic, ranked in descending popularity, are a few key and most recent articles that address each particular subject.
January 11, 2023 – It’s a new year, with new opportunities for franchise growth ahead. Yes, there are economic, legislative and regulatory headwinds, but who would bet against the collective entrepreneurial spirit, creative energy and grit of the franchise community?