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Benchmarking

The Power Of Benchmarking

Business data is very important, and reviewing this data is crucial to business success.

An example of this happened to me this week. A client had lower than expected sales for last month. Why? He had no idea. 

For me, this is no good, we need to know why. Is it a trend? To solve this I suggested he looks at the following data.

Benchmark Period.

  • Last 12 months compared to the same period a year earlier.
  • Last 6 months compared to the same period a year earlier.
  • Last 3 months compared to the same period a year earlier.
  • Last month compared to the same period a year earlier.

Benchmark Data.

  • Revenue
  • Number of Jobs
  • Average Dollar Sale Value
  • Top 20% Invoices
    • Who were the Customers?
    • Are they still buying?
    • Frequency of ordering for these Customers.

The result was more Orders were being received, so the business was busier, but the Order value was lower. Why? Looking at the top 20% Jobs from the previous periods showed a decline in Orders from the top Customers.

This business was losing their top Customers from lack of nurturing and building strong relationships. The solution was clear... talk to your top Customers, find out their problems and match to your solutions. Let your Customers know you care, and their business is important to you.

The Power of Benchmarking and Franchising.

Benchmarking is more powerful when franchising because you have multiple businesses to compare data against. 

My experience has shown me most franchisees are really good at something in their business and it shows up in the numbers. When benchmarking, all these best results become apparent and raises the bar for everybody else because it shows what is possible. New levels are set.

Can you see the power here... continual improvement with a turbo. How would a single standalone business compete with this?

Your role as the franchisor, the leader, is to take this information from the top performers, integrate into the business systems and share with all franchisees.

FIND OUT IF YOU HAVE A VIABLE 10 MILLION DOLLAR FRANCHISE BUSINESS

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