Satisfaction: The Key to Franchise Network Growth
Steven Frost - Partner, Smith & Henderson
Franchisee satisfaction is not just a fluffy way of making franchise owners happier; it positively impacts every aspect of your business:
- Engaged workers generate 43% more revenue (Hay Group)
- 9 of 10 of the key barriers to successful change are people related (PWC)
- Satisfied franchisees will refer new prospective franchisees and will speak highly of you when they are completing their due diligence
- Most franchisees (or their teams) are responsible for delivering great customer service. If they’re not satisfied you cannot expect your customers to be!
Improving Franchisee Satisfaction
Like most key performance indicators, the first step in improving franchisee satisfaction is measuring it. If often pays to have an independent company with specialist expertise to coordinate this for you, especially so you can reassure franchisees that their individual responses will be anonymous. This way they’ll answer honestly so you receive a true picture of what’s working well and areas for improvement. By aligning your business plan to what your franchise network really needs (rather than those franchisees who shout the loudest) you’ll better prioritise your resources.
Once you’ve developed your action plan, clear, consistent and authentic communication to key, especially helping your franchisees to understand that the action you’re taking is a direct result of their feedback. Over time even the most cynical franchisees can become advocates as you deliver on your promises.
TaxAssist Accountants Case Study
With such a large network, it would be easy to listen to franchisees that shout the loudest, so TaxAssist wanted to gather structured and anonymous feedback. In October 2011, it participated in the inaugural Franchise Satisfaction Benchmark programme. In total, 107 of its franchisees completed the online survey and the results were overwhelmingly positive.
David Paulson, Franchise Recruitment Manager, commented, “The Franchise Satisfaction Benchmark has helped us to align our business plan to really focus on what our franchisees need. Smith & Henderson understand the unique relationships in franchising and the anonymous nature meant we could identify the common issues our network is facing – some of these were supplier related, some resourcing and others additional training. We will focus on these, developing an even stronger network.”
Developing a Franchise Recruitment Advantage
TaxAssist is using its franchisee satisfaction results, such as the proportion of franchisees that would recommend it, to differentiate its franchise from the competition and build trust with prospective franchisees. David commented, “The independently verified results have given us immense pride and we have incorporated these into our prospectus and Discovery Day presentations.” In November 2011, TaxAssist was recognised for providing the ‘Best Training & Support’ in the inaugural Best Franchise Awards – what makes these awards unique is they are based exclusively on franchisee feedback.
Preferential Banking Terms from Lloyds TSB
Lloyds TSB is the Official Sponsor of the 2012 Franchise Satisfaction Benchmark programme and The Best Franchise Awards. Lloyds TSB will review and potentially offer preferential banking terms to franchisors that choose to share their Franchise Satisfaction Benchmark results with the bank because these can reduce its risk and demonstrate the franchise system’s long term sustainability.
For more information please email steven.frost@smithhenderson.com, call 0207 1833 224 or visit www.franchisebenchmark.co.uk
A good franchisors advice starts long before your business opens
Simon Bartholomew - Oscar Pet Foods Ltd
Franchisors need franchisees to be successful; they have experience in their business and know what makes a good franchisee. Good franchisors have taken time to develop a recruitment process to help you determine if you can be successful within their system. Like the franchise relationship this process needs to be open and honest. The recruitment process is important to both franchisor and franchisee and is designed to minimise the risk of opening an unsuccessful business.
You are entering a franchise to be able to benefit from the franchisors experience knowledge and training. This should include their experience in helping you decide if you have the right qualities to be a success in their business.
A Franchise Application
The majority of franchisors will ask you to complete various forms and possibly a profiling test. The information is required to help the franchisor assess your strengths and security. If you over state your position you can’t rely on their advice.
A Franchise Interview
Like Oscar Pet Foods most franchisors will include one or more interviews in their process, these interviews are not like job interviews and rely on both parties being honest about their needs and objectives. Don’t be tempted to over sell yourself to be approved. Be honest with your potential franchisor, it is in their interest to approve you if they really believe you can be successful. However it is in your interest to allow the franchisor to know everything they need to be able to use their experience to advise you on your chances of success and to be able to tell you if they believe you won’t succeed.
A Long Relationship
If the system works and after an open and honest exchange of information you are approved, your chances of success are greatly improved and you will have the foundation for a long and successful relationship with whichever franchise system you chose.
Simon Bartholomew is currently a member of the management team of Oscar Pet Foods and has worked in the franchise industry for 30 year. Simon is also currently the Regional Chairman (Northern Region) for the BFA.
Tags: choosing a franchise, franchise success, franchise support, franchisor, simon bartholomew, start a franchise
bfa HSBC Franchisor of the Year 2012
2011 Franchisor of the Year Awards being presented
On June 21st 2012 at the Telford International Centre, the bfa and HSBC will be hosting the annual Franchisor of the Year Awards. The awards are always well attended and recognised in the industry as being one of the most prestigious recognitions of achievement and excellence for franchisors across the UK.
Supported by Express Newspapers, the event will of course be widely publicised and an opportunity for franchisors to attain recognition and extensive PR for their hard work and dedication.
There will be three different categories which focus on seperate areas of franchising:-
- Franchisor of the Year Award supported by Express Newspapers
- HSBC Franchisee Support Award
- Express Newspapers Brand Builder of the Year
Entry forms are now available for franchisors interested in entering for the awards – closing date for entries 30 March 2012. Please visit the bfa website for further details.
