< Blogs

Top 7 KPIs to Monitor for Franchise Marketing Success

A successful franchise is not only about your brand, product, or service you offer. It is also about turning your customers into loyal ones. To ensure that customers keep coming back, you need to closely work with your franchisees and employees. It includes gauging the effectiveness of your franchise marketing efforts. After all, data lets you track and analyze the success of your franchisees.

This blog talks about setting up the right key performance indicators (KPIs) to measure franchise performance. Let's learn more about it.

Top Franchise Marketing KPIs to Measure Success

For franchisors, it is necessary to track franchisee performance for two reasons.

To optimize operations for peak performance, you must know the key metrics of your franchise location(s). Certain KPIs should be measured to regulate the performance of franchise networks. Identifying the KPIs for your operations is an important first step in applying the information to enhance your bottom line.

Specific, relevant, time-bound, measurable, and achievable KPIs can help you quantify the data you need to evaluate the effectiveness of your franchise marketing strategy.

KPIs are especially beneficial for any franchise business, which uses localized content to share the same products and services across multiple locations.

Lets look at the seven important KPIs to implement into your franchise business for optimizing your marketing strategy.

  • 1. Gross Sales

    Gross sales is one of the most important KPIs which is worth measuring.

    Generally, gross sales refer to the total number of sales within a specific time frame. It represents the amount a store earns and records.

    Especially for retail businesses, it is a crucial metric, because it showcases customers' buying habits by reflecting the total amount of revenue a store in a particular location brings over a specific period.

    As sales and profit are not always perfectly correlated, it is necessary to monitor the correlation between the sales direction and movements in several other key performance indicators.

  • 2. Franchisee Profit

    The franchisor must monitor the profit of the franchise store. It provides valuable insights into the store's performance.

    It also gives clarity on new initiatives to start or areas of improvement for increasing the profit.

    Another metric linked with the same is comparable-store sales. It refers to the profit generated by a retail location during the most recent accounting period compared to the profit generated in a similar period in the past.

    It is used to measure sales growth and analyze the performance of existing stores relative to a new store over different time intervals.

  • 3. Return on Investment (ROI)

    ROI is one of the most tracked marketing KPIs for any business. If you are not measuring this KPI then it is advisable to start keeping an eye on it.

    It allows you to figure out if the amount you spent on your franchise marketing efforts
    is worth the number of sales you are generating.

    Monitoring your marketing ROI will help you to justify marketing budgets, and assess marketing efficiency. Ultimately, you will be able to plan better marketing strategies in the future.

  • 4. Customer Lifetime Value (CLV)

    This KPI allows you to know the worth of each customer for your business.

    It measures the average customer's revenue generated during the entire relationship with a company.

    CLV can also be compared with customer acquisition costs to quickly estimate a customer's profitability and the company's long-term growth potential.

  • 5. Conversion Rate

    It measures the percentage of users who completed the desired action such as purchasing or submitting a lead form.

    For retail stores, you can measure the number of store visitors that are converted into customers.

    The conversion rate indicates the effectiveness of your marketing campaigns and determines your ROI.

    In addition, this metric also indicates that you might want to review workforce planning, merchandise in stock, inventory, and availability. As a Franchisor, it provides you with insights into what works and what doesn't within processes implemented.

    The higher your conversion rate, the better your franchise marketing efforts.

  • 6. Google My Business Insights

    For a franchise business, it is important to have a listing on Google My Business. You can create a separate profile for different locations.

    Businesses already having GMB listings must measure customer actions.

    GMB Insights provides you with data on real-world actions that have the power to impact the bottom line of your franchise business.

    The actions you can measure with GMB are,

  • 7. Digital Advertising

    Measuring the success of paid advertising is important for growing your business. As there are various digital mediums, you should set clear, numerical KPIs for each of them.

    These can include reach, engagements, conversion rate, cost per lead, purchases, revenue generated through each channel, and more.

    It is advisable to create monthly reports for analyzing the performance of each store while focusing on lead cost and lead quality.


If you measure all the above KPIs, it will be easier for you to identify the successful, average, and underperforming stores within your franchise network.

Besides, you will be able to make necessary improvements to grow your business.

Brands with multiple dealers/franchisees often face challenges in measuring their hyperlocal marketing efforts. We have an effective performance-driven solution to run, measure, and optimize ad campaigns for your franchise network.

Mediaqart Sync

Mediaqart Sync enables your brand with centralized multi-location advertising for your dealers/franchisees from one place. It allows you to achieve your goals at the local & national levels.

Want to scale your franchise marketing efforts? We are just a call away!