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 email@example.com, call 0207 1833 224 or visit www.franchisebenchmark.co.uk